Circuit court confirmed an arbitration award in excess of $11 million in favor of Plaintiff, a broker/salesperson and investment adviser representative who was terminated after two of Defendant's accounts suffered significant losses. Plaintiff filed claim for defamation and other related claims based on Defendant's statements, on a required regulatory form, reporting the reasons for the termination. Arbitration panel found that Defendant made false statements about Plaintiff, and thus the statements on the regulatory form were neither "frank" nor "accurate". The award does not violate any "well-defined and dominant" public policy"; there is no public policy favoring false or defamatory disclosures by employers. Defendant forfeited any argument that factual findings were not supported by the record as it failed to supply court with a complete record of the arbitration hearing. Arbitrators' award indicates their understanding that punitive damages are available when there is proof of actual malice. (PIERCE and ODEN JOHNSON, concurring.)
Illinois Appellate Court
Civil Court
Arbitration