TD Ameritrade Lawsuit _KINGSTON III v. AMERITRADE INC_System Failures
In January 1998 the Kingstons opened a cash stock brokerage account with Ameritrade, Inc., an on-line brokerage firm. The booklet provided with the application packet promised the ability to access one’s on-line account at any time. William Kingston signed the application form on December 30, 1997, and Virginia Kingston signed the same application on January 4, 1998. The Kingstons began to utilize their account to trade stocks over the Internet. Based on the allegations in Kingstons’ amended complaint, because of failures with the Ameritrade system on November 30, 1998, the Kingstons were unable to place an order to sell certain stocks. The Kingstons contend that, as a result of the inability to sell their stock, they lost $32,652.87 in profits, which further caused William Kingston severe emotional distress, mental pain, and anxiety.
¶ 4 The Kingstons filed suit against Ameritrade, Inc., on March 24, 1999, seeking compensation for lost investment income, and the emotional distress, mental pain, and anxiety suffered by William Kingston. On April 28, 1999, Ameritrade filed a Combined Motion to Compel Arbitration and Dismiss. Both parties subsequently filed briefs and affidavits relative to the combined motions.