Wells Fargo Ordered to Pay Broker $180K in Promissory Note Dispute
Claimant/Counter-Respondent: Wells Fargo Advisors, LLC
Respondent/Counter-Claimant: Shannon M. Powers
Nature of Dispute: Member Firm vs. Associated Person
Allegations: Wells Fargo alleged that Powers failed to pay the balance of two promissory notes that became due and payable upon the termination of her employment with Wells Fargo.
In Powers’ counterclaim, she asserted breach of contract and disability discrimination, failure to accommodate and failure to prevent discrimination and retaliation in violation of California law.
Damages Requested: Wells fargo requested the principal balance from two promissory notes in the amount of $200,468,02 in addition to interest on the amount and filing fees in the amount of $3,825.
Powers requested a dismissal of Wells Fargo’s claims and that the notes be deemed unenforceable. She also requested attorneys’ fees and costs.
In her counterclaim, Powers requested compensation for damages from loss of earnings and employee benefits. She also requested reinstatement, injunctive relief, general damages, special damages, attorneys’ fees, interest and punitive damages.
Result: The panel determined that Wells Fargo is liable to pay Powers $256,000 in compensatory damages and lost wages, $100,000 for attorneys’ fees and $25,000 for emotional distress.
Powers is liable to pay Wells Fargo a total of $200,467.93 for the two outstanding promissory notes but denied Wells Fargo’s requests for attorneys’ fees, costs and interest.
The panel decided as a net result of the two awards that Wells Fargo is liable to pay Powers $180,532.07.