Award FINRA Dteputo Reeolutton In ttie Matter of ttie Ariattration Between: Namasflf the Cteimante Hantet Gate, as Trustee

oftheHaniettGatoTnjst Inring Hante, as Tmstee of ttie Intog Hante Tnjst Name of ttie flesDondent Davreon James Securities, Inc. Nature of ttie Dispute: Customer vs. Member. REPRESENTATION OF PAHTIES For Harriet Gale, as Tnistee of the Hantett Gate Toist (^ater), and Irving Harria, as Toistee of ttie living Hante Tmst ("Harris"), hereinafter collecttvety refened to as "CteimantaT: Steten M. Apottieker, Esq., Sonn & Ersz PULC, Fort Laudordale Ftorida. Fbr Dawson James Securities, Inc., hereinafter referred to as "RespondenT: Neil S. Baritz, Esq. and Robert C. Harris, Esq., Baritz & Colman LLP, Boca Raton, Ftorida. CflW NWllWC 09-00g74

Haarino Stte: Boca Raton. Florida

Statementof Qakn fltod onor about February 18,2009. Claimant Gate signed tiie Submission Agreement January 21,2009. Claimant Harris signsd tiie Submisston Agreement January 21,2009. Statement of Answer filed by Respondent on or about May20,2009. Respondent signed the Submisston Agrsement May 20,2009. CASE SUMMARY Claimante asserted tiie following causes of action: (1) breach of flductery duty; (2) negligence; (3) negligent supenrision; (4) fraud; snd, (5) brsach of conttact. The causes of action ratete to, among ottier ttiings, Cteimante' Investmente In Main Street Natoral Gtes, Inc. municipal bonds. Uniees specifically admttted in ite Answer, Ftespondent denied ttie aHegattons made In ttie Statement of Claim and asserted various afflnnative defereee.

In ttie Statement of Claim, Cteimante requested: (1) an award against Respondent; (2) compensatory damages, In an amount between $100,000.00 and $600,000.00; (3)

FINRA DIspiAe RfisoliAon ArbKrsttonNa 09-00874 AwaidPaM2or4

unspedfied punttive damagee; (4) Intorsst; (5) coste; and, (6) such ottier and torther relief ttils Panel deemed Just and proper. Atttiedose of ttie hearing, Claimant requested rescission of the sate. I^espondent requested: (1) dismissal of ttils action Inttsentirety; (2) coste Incurrsd In connsctton wtth Ite defense of ttils matter; and, (3) suchtorttierrelief as ttie Panel deemed Just and proper. OTHER ISSUES CONSIDERED AND DECIDED TTie Panel ecknowledgeattiatttieyhave each readttiepleadings and ottier materials filed byttispartiss. During ths evidentiary hearing, Cteimante made an ore tonus MottontoContonm PteadingetottieProof,towhich Respondent ot3|eded. After careful conskteratton, ttie Panel granted Cteimantsf motion. The parttes have agreedttiatthe Award Inttilsmatter may be executed In counterpart copies or that a handwritten, signed Award may he entered.

ASKABB
After considering ttie pteadinge,ttietesttmony and evidence presented at ttie hearing, andttiepost-hearing submisstons (If any), the Panel has decided In full and final reeolutton of the issues submtttedfordetermination as tollows: RespondenttoItebte on the claims of bresch of contract and breach offiduciaryduty and shall paytoCteimante compensatory damagee Inttieamount of $11,000.00. The Panel grante rescission. Claimante shall return to Respondent ttie Mate Street Natoral (stes, Inc. munldpal bonds and Itespondent shall rslmburse Cteimante the original purchase price of the bonds. Respondent is Itebte and shall pay to Claimante ttie sum of $300.00, rspresenting reimbursement of ttie non-retondabte dalmfilingfee prevtously paid by Claimante to FINRA. Any and all clalma for rsiief not spsdfically addressed herein, Induding Claimante' requestforpunttive damages, are denied.

Pursuant to ttie Code of Arbttratton Procedure (ttie 'tkxto^,ttietollowingfees are

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FINRA Dispute Resototion assessed afilingfse*foreach claim:

FINRA Diiputs Resolution ArbttrsHonNa 0SO0674 AwardPfiflSi^"*^ InKtel ctelm filing fse n T f e f ^ f & B la made up of a non-refimdable and a refundable portion. iHWiww xaaa Member fees are assessed to each member fimn ttiat Is a party to ttiese pnxedlngs or to ttie member finn(s) ttiat employed ttie assodatod person(e) at ttie time of ttie event(s) gh/ing rise to ttie dispute. Accordingly, as a party. Respondent Is asseesed ttie following: Member aurcharge s $ i ,700.00 Pre-hearing process fee $ 750.00 Hearing process fee a $ 2,750.00 Dteeowni^Reteted Mollen Fbsa Fees apply for each dedston rendered on a dlsoovery-reteted motion. One (1) Decision on discovery-reteted motions on ttie papers wtth (1) ono arbttrator O $200.00/dedslon Claimant submitted one (1) discovery-reteted motton Totel DIscoveiy-Relatad Motton Feee = $ 200.00 = $ 200.00 = $ 1,425.00

The Panel haa aasessed $100.00 of ttie discovery-reteted motion fees to Claimante, ]olntiy and severally. The Panel has assessed $100.00 of ttie discovery-reteted motion fees to Respondent. Haarina Saaalon Feaa and Aaaaaamanta The Panel has asseesed hssring sesston fses fbr each sesston conducted. A session Is any meeting between tiie parties and ttie art)Hrator(s), including a pre-hearing conference wtth the art)ttrator(s), which laste four (4) hours or lees. I=^es associated wtth these proceedings ars: One (1) Pre-hearing aeasion wtth ttie Panel O $1,125.00/sesslon Pre-hearing conference: September 3,2009 1 session Five (5) hiearing sesstons O $1,125.0Q/sesston Hearing Dates: April 5,2010 April 6,2010 April 7,2010 April 8,2010 Total Hearing Seeston Feee The Panel waived $1,126.00 of the hearing session fees. Ths Panel has assessed $5,625.00 of ttie hearing ssssion fees to Respondent AH balances ars payable to FINRA Dispute Ftesdutfon and ars due upon receipt. 1 sesston 2 sessions Isesslon Isesslon =$6,750.00 = $1,125.00 = $5,625.00

FINRA Dispute RosoiuUon AiblbattonNa 004)0874 AwMdPagB4nr4

ARBITRATION PANEL David P. Slater JayE,EGkhau8 RobertH. Hagan Concurring Afbltratora' Skinatuiaa Pubffc Arbitrator, Presldkig Omirperson PiMc Arbitrator Non-PubHc Arbitrator

laL David P. Steter PubHc Artittrator, Presiding Chairpsrson

April13,2Q1Q Signature Date

ISi Jay E. Eckhaus Pubflc Arbttrator

April 14,8Q10 Signators Date

IsL Robert H. Hagan Non-Publto Arbttrator

APfB 14,2010 Signatore Date

Anrill5.20l0 Date of Senrice (For FINRA DIsputo ftesoluHon offlos use only)

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