Wilson v. Morley

The plaintiff had traded with the defendant, a broker, for several years, dealing in stocks on margin accounts. In February, 1926, plaintiff had a credit in his account of approximately $56,000 and was owing defendant $34,000. There is dispute between the parties as to whether at about this time defendant was authorized to purchase for the plaintiff “ Automotive Devices ” stock of the value of $5,000. Defendant had purchased it and *547added the amount to the indebtedness of plaintiff, making the total $39,000. Shortly thereafter the defendant transferred the entire account to another broker,…