First Union Securities, Inc. v. LORELLI

**The Dispute:** Robert Lorelli, a securities broker, sued his former employer Wachovia Securities (formerly First Union Securities) after being fired. Lorelli claimed the company wrongfully terminated him, damaged his reputation through false statements, failed to pay promised severance benefits, interfered with his business relationships, and withheld referral fees he was owed. The case went to arbitration rather than court, as is common in the securities industry. **The Court's Decision:** An arbitration panel ruled in Lorelli's favor and awarded him $196,911.25 in damages plus attorney fees. When Wachovia challenged the arbitration decision in court, arguing the arbitrators had no authority to award attorney fees, the North Carolina Court of Appeals disagreed. The court affirmed the arbitration award, finding that the arbitration panel did have the power to award attorney fees under NYSE rules and the parties' agreement. **Why This Matters for Workers:** This case shows that workers can successfully challenge wrongful termination and other workplace violations, even when forced into arbitration. It also demonstrates that arbitration panels can order employers to pay not just damages but also the worker's legal costs, making it more feasible for employees to pursue legitimate claims against powerful employers.