First American Discount Corp. v. Jacobs

The central incident in this appeal is plaintiff-appellant First American Discount Corporation’s (FADC) liquidation of defendants George and Deena Jacobs’ trading account, allegedly without notice, on October 27, 1997. Defendants claimed that this liquidation constituted unauthorized trading, and the Cook County circuit court agreed, finding that FADC carried out unauthorized trading and thereby breached its fiduciary duty to defendants. Following a bench trial, the court entered judgment in the amount of $106,511.74 (essentially the amount of defendants’ equity balance plus securities on…