Lynch v. Maw

CROCKETT, Justice.

The question presented by this appeal is whether a stock broker who purchased stocks on the New York Stock Exchange on behalf of an “outside” broker, held them in pledge to support the latter’s account and resold them upon his order is, upon the outside broker’s defalcation, responsible to the customer who has paid the outside broker in full for the stock.

Upon suit by Cecil L. Lynch (the customer) against J. A. Hogle & Company (the exchange seat broker), the trial court dismissed plaintiff’s action at the conclusion of his evidence on the ground that Hogle was neither…