Warner v. Dillon

*678OPINION

Eugene Warner owned 40,000 shares of stock of Multinational Industries. On October 4, 1971, Warner instructed a broker at Eastman Dillon, a national stock brokerage firm, to sell the shares, in small lots, for the best price available. When the initial sales caused an abrupt drop in the price of the stock, the broker learned — through inquiries — the stock was nontransferable, even though such restriction did not appear on the certificates. The broker canceled the sales made and declined to make further offers. Warner was so notified by mail.

Warner then brought this action against…