Breach Of Contract Dedicated to Delivering Results

New York based Breach of Contract Attorneys

Recovering Damages for Securities Breach of Contract for Clients Nationwide

When brokerage firms and financial investors want you to invest with them, they make many promises. But on many occasions, some or even a substantial number of these promises, turn out to be false. On such occasions, you may be able to hold them liable for securities breach of contract. Promises made by a financial advisor or brokerage firm to an investor are considered important. If they have made promises that your account will be handled in a certain manner, a contract can crystallize. This means that if your financial advisor made promises to you regarding how they will help you trade your stock but broke their promises, they may be liable to you.

The basis of this rule is that promises made at the time of entering an agreement may form obligations under the agreement. And if your financial advisor fails to live up to their promises, you may be able to seek damages against them. Determining if a breach of contract has occurred is not always straightforward. It will often require a thorough analysis of the unique facts and circumstances of your case. To do this properly, and make the best of your shot at compensation, you will need the services of a qualified securities attorney like Irwin Weltz. Attorney Weltz has extensive experience in securities law cases.

Get in touch with Weltz Law today by calling (877) 905-7671 to understand if you have a claim for securities breach of contract.

Formation of a Contract With a Financial Advisor

Brokerage firms and financial advisors are just like any other party you enter into a contract with. When somebody offers you their service and says they can provide you with a benefit, you reasonably expect that you will get what they have promised. And if you pay money in exchange for those promises, a contract comes into being.

In much the same way, a brokerage agreement between you and your broker or financial advisor amounts to a contract. When they promise to administer your account in a certain way, their promises may become contractual obligations that they are bound to deliver on. It does not matter that they only orally made those promises. Contracts may be oral or written. They may even be implied from the actions of the parties involved in the transaction. Based on these principles of contract, any promises, whether express or implied that were made between the parties, have binding quality. You can sue on them if the financial advisor breaches those promises.

Important Elements of a Securities Breach of Contract Claim

Securities breach of contract claims are used to hold brokerage firms and financial advisors to their promises. The position that they occupy in relation to investors is one where they must act with care. They must provide you with full and accurate information about your proposed investment. If they have made promises they cannot deliver on or if they fail to deliver on those promises, you have a right to remedy.

Recovering compensation will however depend on adducing proof that a breach of contract has occurred.

There are four important elements of proof to be aware of:

  • The existence of an enforceable agreement: This is usually the most difficult aspect of proof for securities breach of contract claims. Apart from the fact that you must show the agreement was enforceable, the case would also require proof of the specific terms of the contract. This would obviously be difficult in cases of an implied or oral contract and proof will depend on the specifics of your case.
  • Performance by the plaintiff: Your case will also require proof that you have performed your own part of the agreement. This is based on the principle that a party alleging breach of a contract must not be culpable for breach as well. You should approach the court with “clean hands”.
  • Breach of the agreement: If the broker or their firm has failed to live up to their promises under the contract, this would constitute a breach. But determining whether a breach has occurred or not will depend on the facts of the case. Weltz Law and its securities attorney will be able to help you find and adduce those facts that show the defendant’s breach.
  • Damage due to the breach: The final element you need to prove to be entitled to compensation is damage. You must have suffered damage arising from the breach for you to be entitled to compensation. Damage may be in the form of a lost opportunity to sell your stocks at profit. It could also arise from losing more money on your stock holdings than you would have if your broker was prudent. Proof of damage will also depend on the facts of your case.

What Damages Can You Recover for a Breach of Contract?

Depending upon successful proof of your claim, you may be able to recover direct and indirect damages for the breach of contract. Direct damages are linked directly to the breach by the defendant. They constitute compensation for the loss you have actually incurred due to the breach.

For instance, if your broker failed to monitor your account as per your agreement and this caused you to lose $10,000 on your shares, this will be your direct damages. The rule in computing this category of damages is that you would be entitled to the value of your stocks “as of the date of the breach”.

Indirect damage may also be assessed against the defendant. This category of damages will cover any consequential losses caused to you by the breach of the contract. It can include out of pocket expenses incurred due to the breach. Although, the rule is that the damage resulting in those losses must have been reasonably foreseeable.

Contact a Seasoned Securities Arbitration and Litigation Attorney

Investors often face substantial losses due to a breach of contract by the broker or brokerage firm. If you suffered financial harm due to a breach of contract, it is vital to confer with a securities attorney regarding whether you may be able to recover compensation. New York based attorney Irwin Weltz at Weltz Law has represented parties in securities litigation and arbitration hearings for more than two decades.

Weltz Law will work tirelessly to help you pursue compensation for your losses. You can contact us at (877) 905-7671 or through our online form to set up a conference to discuss your case.


Experienced & Effective
  • 30+ Years of Collective Experience

    Our attorneys have over 30 years of collective experience representing clients in all aspects of securities and commercial litigation.

  • Contingency Fees for Our Securities Law Clients

    We will not receive a penny in attorney's fees unless a positive recovery is obtained in your case. Contact us to see if you're eligible.

  • Free Consultations

    We will assess the merits of your claims and help you decide on the next step.

  • Litigated Claims in Excess of $50 Million for Our Clients

    Our firm is prepared to fight for you to seek maximum compensation.


Word From Former Clients
    Calmly walked me through the process.

    “Due to his hard work, the hearing lasted less than 30 minutes with the judge dismissing the complaint.”

    - L.K.
    Successfully represented me in a number of matters

    “Attentive to every aspect of my matters, always available to speak with me, gave me great advice and fought hard for me every step of the way.”

    - I.S.
    Truly terrific in every way.

    “He cared, he was responsive, and he guided me through a difficult time with compassion and expertise.”

    - F.S.
    I could not recommend him highly enough!

    “He was there to talk me through any questions and concerns I had until we decided on the best option for me.”

    - Securities Industry
    Smart, cost-efficient, and gets results.

    “My go-to lawyer for arbitration and regulatory matters for years.”

    - B.D.

contact us

Dedicated to Delivering Results Fill out the form below or call 877-905-7671 to schedule your free consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.