Dyer v. Broadway Central Bank

The complaint alleges that plaintiffs, members of the New York Stock Exchange, at defendant’s request and on the latter’s agreement to pay, purchased “ for and on account of the defendant ” certain specified stocks. The basis of the motion to dismiss the pleading for insufficiency is the claim that it appears on the face thereof that the order and the promise to pay were illegal and ultra vires. Assuming that the defendant did exceed its powers in the transaction referred to, the objection of ultra vires is, nevertheless, in my opinion, not available to it, because after the purchase of the…