Klapp v. Bache

In this conversion action by a customer against his stockbroker for closing out the customer’s margin account without reasonable notice, the plaintiff has recovered a verdict of $6,098. The defendants have moved to set aside the verdict upon various grounds.

Because the plaintiff failed to maintain sufficient margin to adequately protect his account the defendants notified him on June 11, 1928, that they had placed stop loss orders on all of his stocks and in the notice they enumerated the stocks and the stop loss order amount at which they proposed to let each stock be sold. Plaintiff…