Passman v. Oliphant

The plaintiff, an investor, sues the defendant, his former stockbroker for conversion of the plaintiff’s securities held in a margin account. Most of the facts were stipulated and testimony was taken on a limited number of issues.

After trial, I find that prior to April of 1970 and at all material times, the plaintiff maintained a margin account with the defendant. On or about April 26, 1970 the plaintiff instructed the defendant broker to purchase for his account, for cash, 500 shares of Belmont Franchising Oorp. common stock, an over the counter security, at $31 a share for a total price…