Cooney v Financial Indus. Regulatory Auth., Inc.

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Cooney v Financial Indus. Regulatory Auth., Inc. 2021 NY Slip Op 32350(U) November 12, 2021 Supreme Court, New York County Docket Number: Index No, 654588/2021 Judge: Laurence L. Love Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. [* 1] INDEX NO. 654588/2021 NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 11/15/2021 SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: PART HON. LAURENCE LOVE Justice ---------------------------------------------------------------------------------X PAUL COONEY INDEX NO. 63M 654588/2021 MOTION DATE Petitioner, MOTION SEQ. NO. 09/24/2021 001 -vFINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA), DECISION + ORDER ON MOTION Respondent. ---------------------------------------------------------------------------------X The following e-filed documents, listed by NYSCEF document number (Motion 001) 2, 8, 9 were read on this motion to/for CONFIRM/DISAPPROVE AWARD/REPORT . Upon the foregoing documents, the Petition is resolved as follows: Petitioner Paul Cooney (“Cooney” or “Petitioner”), brings this Special Proceeding pursuant to Article 75 of the CPLR, seeking an order confirming the award issued in the arbitration held under the auspices of the FINRA Office of Dispute Resolution, captioned Paul Michael Cooney v. Maxim Group LLC and Hapoalim Securities USA, Inc., FINRA Case Number 20-01944 (the “FINRA Arbitration”), recommending the expungement of all references to the FINRA Arbitration (Occurrence Numbers 1098898, 1308815 and 1730086) contained in the Central Registration Depository (“CRD”) records for Cooney (CRD # 2198167). Non-parties Maxim Group, LLP and Hapoalim Securities, USA, Inc. are the underlying customers concerning Numbers 1098898, 1308815 and 1730086 who filed customer complaints against Petitioner, which was reported on Petitioner’s registration records. Due to the Claimant’s Statement of Claim, Cooney’s public registration records with the CRD now contain references to said complaints. On or about June 18, 2020, Petitioner filed a Statement of Claim in the Arbitration, seeking expungement of the Occurrence from his registration records. On March 5, 2021, FINRA 654588/2021 COONEY, PAUL MICHAEL vs. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA) Motion No. 001 1 of 4 Page 1 of 4 [* 2] INDEX NO. 654588/2021 NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 11/15/2021 held a video-conference hearing, with recorded audio, before the Arbitrator concerning Petitioner’s request for expungement. After considering the pleadings, testimony and evidence presented at the hearing, the Arbitrator signed and acknowledged the Award, which, in full and final resolution of the issues submitted for determination, recommended that, upon confirmation of the Award by a court of competent jurisdiction, all references to the Occurrence be expunged from Petitioner’s registration records maintained by CRD. Pursuant to CPLR § 7510, Petitioner now seeks confirmation from this court of the arbitration award. DISCUSSION CPLR § 7510 CPLR § 7510 states: “The court shall confirm an award upon application of a party made within one year after its delivery to him, unless the award is vacated or modified upon a ground specified in section 7511.” N.Y. C.P.L.R. § 7510. The First Department, in interpreting CPLR § 7510, gives “the word ‘shall’ its ordinary meaning” and the Court is “directed unequivocally by CPLR 7510 to confirm an arbitration award if a timely application is made whenever the award is not vacated or modified under CPLR 7511.” Bernstein Family Ltd. P’ship v. Sovereign Partners, L.P., 66 A.D.3d 1, 5 (1st Dept 2009). As long as the Respondent is not seeking to vacate or modify the award, the court does not run into the problem of inserting itself into dispute resolution when only confirmation of an arbitration award has been sought. See id at 7. Here, Petitioner, in seeking the confirmation of the Expungement Award, has satisfied all of the procedural requirements. Petitioner has made a timely application within one year of receipt of the award. Respondent has had ample notice and has made no motion to modify or to vacate the Expungement Award and does not contest Petitioner’s efforts to have the Expungement Award confirmed by this court. 654588/2021 COONEY, PAUL MICHAEL vs. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA) Motion No. 001 2 of 4 Page 2 of 4 [* 3] INDEX NO. 654588/2021 NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 11/15/2021 FINRA’s Rule and Venue FINRA Rule 2080(a) provides that a petitioner, who seeks to expunge information from his CRD record, “must obtain an order from a court of competent jurisdiction directing such expungement or confirming an arbitration award containing expungement relief.” Additionally, FINRA Rule 2080(b) requires a petitioner seeking expungement under 2080(a) to name FINRA as an additional party and serve FINRA with all appropriate documents, unless FINRA waives this obligation upon request of petitioner. FINRA granted Petitioner’s request for a waiver of the obligation to name and serve FINRA. (See Petition, Exhibit D.) Venue is proper as there is no specification giving sole jurisdiction to a different tribunal and the underlying FINRA Arbitration was heard in New York County. See e.g., Big-W Const. Corp. v. Horowitz, 24 Misc. 2d 145, 148 (Sup. Ct. 1959), aff’d. 14 A.D.2d 817 (2d Dept 1961) (“In the absence of a specification in a contract or submission to arbitration giving sole jurisdiction to a particular tribunal ‘the supreme court for the county in which one of the parties resides or is doing business, or in which the arbitration was held, shall have jurisdiction”). Therefore, this Court has jurisdiction to confirm the Expungement Award. Accordingly, it is, ADJUDGED that the petition is granted, and the Expungement Award rendered in favor of Petitioner and against Respondent is confirmed; and it is further ADJUDGED that this Court directs entry of judgment of the Expungement Award; and it is further ADJUDGED that there be an expungement of all references to the FINRA arbitration captioned Paul Michael Cooney v. Maxim Group LLC and Hapoalim Securities USA, Inc., FINRA 654588/2021 COONEY, PAUL MICHAEL vs. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA) Motion No. 001 3 of 4 Page 3 of 4 [* 4] INDEX NO. 654588/2021 NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 11/15/2021 Case No. 20-01944 (Occurrence Numbers 1098898, 1308815 and 1730086) from the CRD records for Paul Michael Cooney (CRD No. 2198167) and BrokerCheck records. 11/12/2021 DATE CHECK ONE: $SIG$ LAURENCE LOVE, J.S.C. X CASE DISPOSED X GRANTED • DENIED APPLICATION: SETTLE ORDER CHECK IF APPROPRIATE: INCLUDES TRANSFER/REASSIGN ~ NON-FINAL DISPOSITION GRANTED IN PART SUBMIT ORDER FIDUCIARY APPOINTMENT 654588/2021 COONEY, PAUL MICHAEL vs. FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA) Motion No. 001 4 of 4 • • OTHER REFERENCE Page 4 of 4

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