Fed. Sec. L. Rep. P 99,676 Janet Brophy v. Ronald Redivo, Blyth, Eastman, Dillon & Co.

For over thirty years Janet Brophy maintained a securities account at a succession of brokerage houses. In March 1978, when her account executive, Ronald Redivo, became a broker with defendant Blyth, Eastman, Dillon & Co., she transferred her account to that house. During August 1978, while Ms. Brophy was on a month long vacation in Mexico, defendant Redivo executed thirty to thirty-two trades on her account, more than in any prior or subsequent month. Although these trades resulted in at least short term gain for Ms. Brophy and although she made no complaint to Blyth, Eastman or Mr. Redivo for at least six months, Ms. Brophy filed this action against the brokerage firm and her account executive alleging securities violations and breach of contract. She appeals from a grant of summary judgment for defendants on the contract claim and a directed verdict for defendants on the securities claim. We affirm both rulings by the district court.

The Contract Claim

Ms. Brophy alleged that Mr. Redivo’s buying and selling on her account was without her authorization and was therefore a breach of their brokerage agreement. Even if the August transactions were unauthorized, this claim must…