People, for Use of Harley v. Hendrie

The action is to recover $4,400, the purchase price paid by plaintiff to Hendrie, Hall & Murphy, licensed dealer in securities, under the blue sky law, so-called (2 Comp. Laws 1929, § 9769 et seq.), on sale of corporate stock which had not been accepted for filing by the Michigan securities commission. Defendant is surety on the dealer’s bond, the condition of which is:

“The said Hendrie, Hall & Murphy and all salesmen registered by him shall faithfully comply with the provisions of Act No. 220, Pub. Acts 1923, as amended. ’ ’

Defendant had judgment on trial before the court without a jury. The…