Cecka

Defendants Beckman & Co., Inc. (a corporate brokerage firm dealing in securities and commodities), and Jack Vaughn and Harry Evans (two of its account representatives) appeal from a judgment awarding plaintiff damages in the amount of $5,449.52 after nonjury trial of a negligence action for losses sustained by plaintiff while defendants were handling his account.

Summary of the Facts

Plaintiff is a certified public accountant and licensed real estate broker, with degrees in business administration, accounting, and law. He has invested in the stock market profitably since 1951. Prior to the events herein described, however, he had not engaged in any commodities transaction.

Having made a study of the corn market, plaintiff decided in the fall of 1968 to invest in that commodity. On September 11, 1968, he opened a margin account with an $8,000 deposit at the Sacramento office of defendant Beckman & Co., Inc. (hereinafter, “Beckman”), where he was assisted by defendants Vaughn and Evans, who were commodities specialists. At the same time, plaintiff signed a “Customer’s Margin Agreement” which stated in relevant part as follows: “You [Beckman] may, whether or not a margin…