Seitter v. Farmer's Commodities Corp. (In Re Yeagley)

MEMORANDUM ON SUMMARY JUDGMENT FOR DEFENDANT 1

JOHN T. FLANNAGAN, Bankruptcy Judge.

The Yeagleys had maintained a margin account with Farmer’s Commodities Corporation, a commodity broker. When trading in the account produced a deficiency that exceeded $46,000, Farmer’s made numerous “margin calls” as provided by the account contract. The Yeagleys tendered a $35,000 cheek; Farmer’s credited the payment to the Yeagleys’ account; and the Yeagleys were permitted to continue trading until their account was closed with a $60,239.31 deficiency. When the Yeagleys filed for Chapter 7 relief, their…