Paine Webber to Pay Damages: The American...

Paine Webber to Pay Damages: The American Arbitration Assn. panel has made an award totaling $1.85 million against Paine Webber Inc. for breach of fiduciary duty to client Leonard A. Aaron during the 1987 stock market crash. Aaron, a co-founder of the Aaron Bros. art supply stores in Los Angeles, alleged lack of supervision on his account and said he was not told of the extent of the risks to which he was exposed. Aaron is to receive $500,000 in compensatory damages and is relieved of $1.35 million of debt and interest claimed by the brokerage firm. Aaron had sought $3.3 million in compensatory damages, but the panel held that, as a knowledgeable investor, he was partly responsible for his losses.