Dean Witter Reynolds, Inc. v. Selectronics, Inc.

OPINION OF THE COURT

Milonas, J. P.

Plaintiff Dean Witter Reynolds, Inc. seeks to recover its alleged losses from the sale of certain stock that was rejected for clearance by the Depository Trust Company. In that regard, defendant BIL Banque Internationale a Luxembourg (Suisse) S.A. deposited five stock certificates of defendant Selectronics, Inc. into its brokerage account with plaintiff. In accordance with BIL’s instructions, Dean Witter began selling the Selectronics shares, which appeared to be fully negotiable, and remitted the proceeds to its client. However, the securities clearing house…