An NASDR arbitration panel has ruled against Franklin Templeton of San Mateo, Calif. in an arbitration case filed in 1999 against the fund adviser by Daniel Calabria, a former fund executive.
In settlement of the arbitration, Franklin Templeton has been ordered to pay $458,208 in back compensation to Calabria, in addition to retroactive interest dating back to1992 and some related administrative fees.
The NASDR arbitration was initiated in May of 1999 by Calabria, the former president of Templeton Funds Management which was advised by Templeton, Galbraith & Hansberger. In 1993, Templeton merged with Franklin Resources and Calabria negotiated a severance package valued at $1.7 million.
In filing his grievance with the NASDR, Calabria claimed that Franklin misrepresented and concealed information regarding an additional $805,000 in benefits due to him under a 1988 employee restricted stock plan.
In June of last year, Franklin countered by filing a civil lawsuit against Calabria, alleging that Calabria had breached his severance agreement by filing for an NASDR arbitration panel to decide the case. Franklin claimed that in Calabria's severance agreement, the former executive agreed not to make any future claims against the firm.
Franklin declined comment.