MacDonald v. Henry Hornblower & Weeks

In 1929 plaintiff bought and sold stocks through defendant brokers. Her account was handled by E. F. Lee, a “customer’s man” in their employ. Lee made some purchases and sales for plaintiff without her authorization and sustained a loss of $3,026, which defendants charged against plaintiff’s account. About July 1st plaintiff trans ferred her account to another broker, learned of Lee’s unauthorized transactions, and informed defendants, who denied responsibility or liability therefor. Lee admitted his misconduct, figured the loss at $3,000, and offered her his note therefor. She accepted the…