Matter of Newburger v. Lubell

The plaintiffs are a firm of stockbrokers having a membership in the New York Stock Exchange. The defendant Abraham P. Lubell bought and sold securities through them, and on June 3d, 1926, signed an agreement governing his relations with the plaintiffs as his brokers “ in the purchase and sale of securities.” Under the terms of that agreement, the plaintiffs were authorized to “ close out ” the defendant’s account by purchase or sale of securities whenever the brokers might deem it necessary for their protection. The agreement contained a provision that “ any controversy arising between us…