Herron Northwest, Inc. v. Danskin

This action was brought by a broker to recover damages attributable to a customer’s failure to pay for shares of stock which he had ordered the broker to purchase for him. The evidence showed that the customer, the respondent Merlyn E. Danskin, was unable to pay for the shares on the date set for payment, that the market was falling, and that the petitioner sold the shares at a price less than the price for which it had purchased them, resulting in a loss of approximately $12,000.

The trial court’s judgment for the petitioner was reversed by the Court of Appeals, which, on its own motion,…