Duisenberg-Wichman & Co. v. Johnson

The defendant H. L. Johnson appeals from an adverse money judgment in an action involving certain corporate stock transactions which took place between the plaintiff, a copartnership engaged in the stock and bond brokerage business, and defendant, who carried a purchasing and selling account with said firm.

The account was opened in May, 1928, and closed October 30, 1928. It was the business custom of said firm to retain in its possession the stock purchased for its clients and to mail the latter memoranda of purchases and sales, and a monthly statement showing, among other things, the names and number of shares of the stocks bought and sold, the price paid and received therefor, the amount of debits and credits, and the balance remaining in the account. During the period defendant maintained said account he had purchased and sold some Magnavox stock, and in July his account was credited with $300 in cash and 200 shares of Magnavox stock, which said firm had purchased at $2.60 a share; and his monthly statement so showed. Shortly thereafter, at defendant’s direction, the stock was sold for approximately $533', and about the same time defendant drew from his account by check a…