Norden v. Duke

129 A.D. 158, 113 N.Y.S. 494, 1908 N.Y. App. Div. LEXIS 1260

This text of 129 A.D. 158 (Norden v. Duke) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norden v. Duke, 129 A.D. 158, 113 N.Y.S. 494, 1908 N.Y. App. Div. LEXIS 1260 (N.Y. Ct. App. 1908).

Opinion

Clarke, J.:

This action was brought by plaintiffs, conducting business as brokers in the city of Hew York, under the firm name of A. Horden & Co., to recover an alleged balance of account claimed to be owing by the defendant as a result of certain transactions in the purchase and sale of cotton, which they claimed to have conducted for him. The case was before this court on an appeal from an order vacating a warrant of attachment, which order was reversed (106 App. Div. 514); on appeal from a judgment entered upon a dismissal of the complaint upon the trial, which judgment was reversed and a new trial granted (113 App. Div. 99), and from a judgment entered upon a verdict in favor of the plaintiffs, which was reversed and a new trial granted for an error upon the trial (120 App. Div. 1).

The facts are sufficiently stated upon the former appeals. The transactions out of which this suit grew were conducted by one Bramham, an employee of the defendant Duke, who resided in Durham, H. O. The main question litigated was that of agency. On the motion to vacate the attachment this court said: “ Facts are disclosed in the proof upon which the attachment was granted from which a jury would be authorized to find that Bramham did have authority to transact the defendant’s business and to give the order in question.” (106 App. Div. 514.) On reversing the judgment of dismissal we said: “We think the facts thus proven by the plaintiffs established pri/ma facie authority on the part of Bramham to deal with the plaintiffs in defendant’s name.” (113 App. Div. 99.) On the appeal from the judgment in plaintiffs’ favor we said: “ Upon the last trial the plaintiffs presented practically the [160]*160same evidence tending to show that the defendant authorized the transactions by general authority conferred upon Bramham. The defendant testified in his own behalf, and Bramham was examined in his behalf by commission. Their evidence does not as matter of law at least, overcome th b prima facie case presented by plaintiffs, and the question as to whether the defendant was liable upon the ground that Bramham was his authorized agent was a question of fact which lias been determined by the jury in favor of the plaintiffs. We do not regard their verdict on that question as against the weight of evidence, but we are of opinion that there must be a new trial for errors in the charge.” (120 App. Div. 1.)

Upon this trial Bramham was called as a witness and examined in open court. We have carefully examined the record and are of the opinion that a pure question of fact upon the question of agency was presented for the determination of the jury. The jury having resolved that question in favor of the plaintiffs, we cannot say that their verdict was against the evidence or the weight thereof.

¡Regarding the controversy as to the liability of the defendant to the plaintiffs as settled by the verdict, a serious question is presented upon this record as to the amount of the recovery. The transactions were conducted by telegraph on the 22d of December, 1903. Defendant telegraphed: “Sell Two thousand March ninety-six,” which meant an order to his brokers to sell 2,000 bales of cotton to be delivered in March at 12.96 cents per pound. The plaintiffs wired back: “ Sold Two thousand March ninety-six.” Shortly thereafter they wired defendant: “ Please remit Two thousand dollars,” to which defendant answered : “ What do you think of position ? Don’t care to protect March,” to which they answered: “ Bulls buying wildly. Confident as ever. ¡No faith in it ourselves,” and shortly thereafter: “ Please make remittance four thousand instead of two. Answer,” to which they received the reply: “You were advised did not desire to protect trade.”

Mr. ¡Norden testified that they bought 2,000 bales of cotton for defendant’s account immediately after the receipt of the telegram that he did not care to protect the trade, which, in conjunction with the other telegrams, was considered as an order to close out his cotton, to buy him in; that the time this telegram was received was two-forty-two. “ I would say that we bought that cotton at 2:43 [161]*161or 2:44, within a few minutes after that, maybe five or ten minutes.” That the cotton was bought through another broker in Horden’s presence; that he stood right behind this broker and saw him doing it; that Hr. Allen bought the cotton, 500 bales at thirteen and forty one-hundredths and 1,500 bales at thirteen and forty-four one-hundredths; that the loss on the transaction, including brokerage, was $4,900, to which was credited $400 gain on a previous transaction, leaving the amount due $4,500.

Hr. Allen was called as a witness by the plaintiffs and testified that the order which he received to buy was a stop order at forty, and that he could not and did not buy until somebody else had sold at forty, meaning by that thirteen and forty one-hundredths cents a pound. “ He gave me a stop order; that means that as soon as the market sells at 40 for Harch I have got to buy these 2,000 bales, and if I can’t get them at 40, I have got to buy them at the market. That is a stop order. * * * • The Harch I bought on the stop order; while I had the stop order, as a matter of fact, I bought at the market, I had to. There isn’t anything to indicate what my stop was on that. But I recall it to my mind distinctly, because I have been up here three or four times, and it has come back to me, the execution of that one order. Well, what brings it ■ more to my mind than the other matters would be this order, for instance, was to buy two thousand Harch, stop at 40. And it was one of the days when we had a wild market. * * * The order was not executed by me immediately, without regard to the stop. Ho, I could not execute it until the market had touched the stop order price. I could not execute that order until somebody else had traded in Harch at 40, and as soon as that happened I had to fill this stop order. That is the custom in all markets of that kind. The broker is not justified in filling a stop order until it touches the price at which the stop is at.”

Under cross-examination he testified, “ If this stock at the time I got that order was selling át the exchange at 13.07,1 certainly could not buy that stock. I had to wait until the stock went to 13.40 before I could buy it. If it didn’t go to 13.40 on that day I wouldn’t have bought it at all.” This evidence was disconcerting to the plaintiffs, and later in the case Allen was recalled in an [162]*162attempt to get rid of it. He said, “ I have been requested by Mr. It orden to turn over in my mind the subject of the execution of the order which I testified to the other day and I have turned the matter over in my mind. * * * I have a dim recollection from looking over my book and the business that I did that dayj which was very large, that this was a stop order. I am not positive about it. I recall making the trade; that is, buying the cotton, but I am. not positive about the stop order. But that is my recollection. I judge a good deal from the trades entered in my book. I was doing a large business that day for a whole lot of people, and especially for Mr. Morden, and that is what gives me the impression that it was a stop order.” Being cross-examined he said, “ * * * 1 realize that I was the first person on that day on the witness stand to use the words ‘stop order’ and that it was not Mr. Mooney that first used them. * * * I had in mind a stop order because I was speaking of it. I had spoken of it, yes, and the stop order I had in mind at that time, 13.40 was the stop order I executed for 2,000 bales for Mr. Horden.”

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Related

Norden v. Duke
106 A.D. 514 (Appellate Division of the Supreme Court of New York, 1905)
Norden v. Duke
113 A.D. 99 (Appellate Division of the Supreme Court of New York, 1906)
Norden v. Duke
120 A.D. 1 (Appellate Division of the Supreme Court of New York, 1907)

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Bluebook (online)
129 A.D. 158, 113 N.Y.S. 494, 1908 N.Y. App. Div. LEXIS 1260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norden-v-duke-nyappdiv-1908.