AwardFINRA Dispute Resolution

In the Matter of the Arbitration Between:

ClaimantJames Kenerson

Case Number: 14-03648

vs.

RespondentMorgan Stanley Smith Barney LLC

Hearing Site: Boston, Massachusetts

______________________________________________________________________

Nature of the Dispute: Associated Person vs. Member

REPRESENTATION OF PARTIES

For Claimant James Kenerson: Dan Druz, Esq., Belmar, New Jersey.

For Respondent Morgan Stanley Smith Barney LLC: Tracy L. Gerber, Esq., Beth Black,Esq., and Eric Feld, Esq., Greenberg Traurig, West Palm Beach, Florida.

CASE INFORMATION

Statement of Claim filed on or about: December 2, 2014.Claimant signed the Submission Agreement: December 2, 2014.

Statement of Answer filed by Respondent on or about: March 3, 2015.Respondent signed the Submission Agreement: February 6, 2015.

CASE SUMMARY

Claimant asserted the following causes of action: fraudulent inducement, breach ofcontract, and defamation.

Unless specifically admitted in its Answer, Respondent denied the allegations made in theStatement of Claim and asserted various affirmative defenses.

RELIEF REQUESTED

In the Statement of Claim, Claimant requested unspecified compensatory damages,and such other and further relief as may be determined by the Panel.

At the close of the hearing, Claimant requested compensatory damages in the amountof $1,469,913.00.

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In the Statement of Answer, Respondent requested that Claimant’s claim be dismissedin its entirety.

OTHER ISSUES CONSIDERED AND DECIDED

The Arbitrators acknowledge that they have each read the pleadings and othermaterials filed by the parties.

The parties have agreed that the Award in this matter may be executed in counterpartcopies or that a handwritten, signed Award may be entered.

AWARD

After considering the pleadings, the testimony and evidence presented at the hearing,and the post-hearing submissions, the Panel has decided in full and final resolution ofthe issues submitted for determination as follows:

1. Respondent is liable for and shall pay to Claimant compensatory damages in theamount of $196,651.00 plus interest at the rate of 12% per annum from July 1, 2011until the award is paid in full.

2. Any and all relief not specifically addressed herein is denied.

FEES

Pursuant to the Code, the following fees are assessed:

Filing FeesFINRA Dispute Resolution assessed a filing fee* for each claim:

Initial Claim Filing Fee =$ 1,250.00

*The filing fee is made up of a non-refundable and a refundable portion.

Member FeesMember fees are assessed to each member firm that is a party in these proceedings orto the member firm that employed the associated person at the time of the events givingrise to the dispute. Accordingly, as a party Morgan Stanley Smith Barney LLC isassessed the following:

Member Surcharge =$ 1,500.00Pre-Hearing Processing Fee =$ 750.00Hearing Processing Fee =$ 2,200.00

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Discovery-Related Motion FeesFees apply for each decision rendered on a discovery-related motion.

One (1) Decision on discovery-related motion on the paperswith (1) one arbitrator @ $200.00 = $200.00Respondent submitted (1) one discovery-related motionTotal Discovery-Related Motion Fees = $200.00

1. The Panel has assessed $100.00 of the discovery-related motion fees toClaimant.

2. The Panel has assessed $100.00 of the discovery-related motion fees toRespondent.

Hearing Session Fees and AssessmentsThe Panel has assessed hearing session fees for each session conducted. A session isany meeting between the parties and the arbitrators, including a pre-hearing conferencewith the arbitrators, that lasts four (4) hours or less. Fees associated with theseproceedings are:

Two (2) Pre-hearing sessions with a single arbitrator @ $450.00 = $ 900.00Pre-hearing conferences: January 7, 2016 1 session

February 12, 2016 1 session

Two (2) Pre-hearing sessions with the Panel @ $1,000.00 = $ 2,000.00Pre-hearing conferences: June 10, 2015 1 session

April 25, 2016 1 session

Eight (8) Hearing sessions @ $1,000.00 = $ 8,000.00Hearing Dates: February 16, 2016 2 sessions

February 17, 2016 2 sessionsFebruary 18, 2016 2 sessionsFebruary 19, 2016 2 sessions

Total Hearing Session Fees = $10,900.00

1. The Panel has assessed $5,450.00 of the hearing session fees to Claimant.2. The Panel has assessed $5,450.00 of the hearing session fees to Respondent.

All balances are payable to FINRA Dispute Resolution and are due upon receipt.

May 13, 2016

May 13, 2016

May 13, 2016