Smith v. Hutton

138 A.D. 859, 123 N.Y.S. 656, 1910 N.Y. App. Div. LEXIS 1650
Appellate Division of the Supreme Court of the State of New York·Decided June 10, 1910·Published·Cited by 3 cases

Opinions

Miller, J.:

This is an action to recover damages for the negligence of the defendants, stockbrokers of the city of New York, in failing to [860] execute an order for the sale of stock. The defendants had pur- ' chased for the plaintiff 100 shares of Union Pacific stock. The plaintiff informed the defendants that he was going to Boston and was told by them that he might send any messages to them over the private wire of Paine, Webber & Co., stockbrokers of that city. He, went to Boston, and on March 2.5, 1907, the following telegraphic messages were interchanged between the parties to this ■ action over said wire:

(1)
“ Boston, Mar. 25, .1907. ■
“ Mr. DeYan.
“ E: F. Hutton & Co,, N. Y.
“ Msg. No, 1.
“ Pis. cancel stops and sell my Un. Pac. at 130f and Copper at 90J pis. confirm.
“ JOHN B. SMITH.’’
(2)
“Boston, Moh. 25, 1907.
“DeYan.
“ E. F. Hutton & Co.
“ Sell for my account and risk Make limits 129f- and 89f instead of former limits.
“JOHN B. SMITH.”
(3)
“3/25.
“E. E. Hutton & Co.
“ 33 & .35 New Street, New York.
“ De Yan Time 10 : 33
“What did you do ans qk.
“ 17 Co ' JAS. B. SMITH.”
(4)
“ Paine, Webber & Co.
“ 27 State Street.
“Private Wire.
“Co. Boston, Mar. 25, 1907.
“ J. B. Smith. ' •
“We did nothing you cancelled your stops please wire more, funds,
“DEYAN. '
“10 44ft,”
[861] (5)
“b600 11 14a. ■ Boston, Afar. 25, 1907.
“John B. Smith. -
“Your limits now are 100 AGP 90f and 100. TJ. P. to sell at 130£ is this not correct yon cancelled stops.
“DEYAH.
“11 13a.-”
(6)
“■3/25
“ E. F. Hutton & Go., . f .
9-33 & 35 New Street, New York.
“ Time 1137 a. m.
“ DhYan
“Yon are wrong those were my first Lts wired 9.50 a.m. 2nd msg rec’d in H. Y. 957 gave Lts 129-J and 89§ Un Pac should have been sold An error was made. But not mine & I think you allow sale Ans qk.
“ J. B. SMITH.”
(?)
“ b9co Boston, Mar. 25, 1907.
“ J. B. Smith
“ We regarded all your telegrams in order they came to us. Your msg to make limits came right at opening and other one a minute or so later. The fault is the wire not ours, taking it up in meantime shall we change limits to 129^- and 89f ans qk.
“DEYAH
“ 12 06p ”
(8)
£70co • Time-3/25 1.32 p. m.
“ DeYan'
“ Close out the acct at discretion, but feel that I am justly entitled to sale of U P at 129 A ■
“ J. B. S'.”
(9)
“ Time, 2/28 p. m.
“ Devan -
“ Please mail statement of acct. to-night care Bright Sears & Co., Exchange Bldg. I assume you have closed out or will on this recovery,' please wire reply after 3. Am writing.
■ “J.B. S.”

[862] The plaintiff, who understood telegraphy, testifiéd that he. heard No. 1 transmitted by the operator in the office of Paine, Webber ' '& Go., and ■ that he heard the New York operator “-0. K.” it at nine-fifty A, m., and that seven minutes later, to wit, at nine-fifty-seven, lie sent No. 2. The stock* market .opened in New York at ten o’clock. • Union Pacific did not sell as high as 130J on March twenty-fifth, but between ten and, ten-twenty-five a. m. there were a number of sales in lots, ranging from 100 to 1,200 shares, at prices varying from 129-J- to 130. Shortly, before the closing of the market, the defendants sold 100 shares for the account of the' plaintiff at 122|-.

On the -trial the defendants were at pains to explain the- receipt of the plaintiff’s telegram-authorizing them to close out his account at discretion, and in what manner they obeyed it, but they made iio. attempt to explain when or in what order telegrams 1 and 2 were received by them. They did produce, however, their copy of No; 1, and it bore a .significant erasure, to wit, the figures 95'9a in typewriting were erased, and in place of them the figures 1002a were inserted by pencil. . . '

The testimony of the plaintiff as to the.time when the messages were, sent and when .he heard the New York operator “ O. K.” them,'the omission of the defendants to .explain when and in what order the first two telegrams were received, and to account in any way for the failure to execute the order to sell at 129^, in connection'with the significant erasure on their copy of the first telegram, /justified the jury in finding that the messages were in fact delivered in the order in .which they were sent, and that the mistake occurred in the defendants’ offiqe. '

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Smith v. Hutton, 138 A.D. 859, 123 N.Y.S. 656, 1910 N.Y. App. Div. LEXIS 1650 (N.Y. Ct. App. 1910).

138 A.D. 859 (Smith v. Hutton) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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