Lehman Bros. v. Cox

Andrias, J.P., and Williams, J., dissent

in a memorandum by Andrias, J.E, as follows: After Lehman Brothers commenced an arbitration before the American Stock Exchange to collect a margin debt of $65,791.96 from respondent Cox, the parties stipulated that upon payment of $60,000 Lehman Brothers would “remit” 112,400 shares of Borealis stock to Cox. However, after Cox paid the $60,000 settlement, Lehman Brothers discovered that there were only 81,700 shares in his account, the remainder having previously been liquidated to cover certain margin calls. Cox then brought an action to enforce the…