Baird v. Frankline

AUGUSTUS N. HAND, Circuit Judge.

In the opinion of a majority of the court the judgments must be affirmed. The facts are stated in Judge CLARK’S opinion and need not be here repeated.

We accede to the view that the Stock Exchange violated a duty when it failed to take disciplinary action against Richard Whitney on November 24, 1937, after there was reason to believe that the latter had converted the plaintiffs’ securities. But to justify a judgment in favor of either plaintiff, such a breach of duty must have resulted in damage that can be traced to the breach. We can see no substantial…