Bank of St. Helena v. Lilienthal-Brayton Co.

Appeal from judgment in favor of defendants entered pursuant to a verdict of a jury, which verdict was directed by the court upon the theory that plaintiff had failed to present facts sufficient to sustain its cause of action.

The action was one to recover damages resulting to plaintiff from and through the fraud of defendants, and a narrative of the facts may be here given.

The plaintiff is a banking corporation with its place of business at St. Helena in Napa County, California. The defendants as partners are engaged in a general brokerage business, consisting in part in the underwriting and sale of bonds, notes and other investment securities. During the month of January, 1921, the defendants offered for sale to the general public certain mortgage serial notes described as T. A. Tomasini notes. A circular descriptive of said notes was prepared and circulated throughout the state. The circular described the notes and the security behind them. Without detailing the representations of the circular it will suffice to say that the notes were represented as being abundantly secured, and held out as an unusually sound investment, approved and certified by the superintendent of banks…