Gruntal v. United States Fidelity & Guaranty Co.

Plaintiffs are a firm of stockbrokers, members of the New York Stock Exchange. Plaintiffs had as customers one Louis Katz and Cassie Lewin. In the months of April and May, 1928, they received from Katz and Lewin certain negotiable bonds which they sold and placed the proceeds of the sales to the accounts of Katz and Lewin. About ten days after the receipt by the plaintiffs of these bonds they were notified by one of the purchasers of the bonds that the bonds were stolen. Pursuant to the custom of stockbrokers the sales were made by the plaintiffs in their own names without disclosing the…