118 Misc. 503 | N.Y. Sup. Ct. | 1922
This action is brought to recover the sum of $204,601.27, the balance alleged to be due plaintiff from defendants on account of certain stock transactions with the defendants stockbrokers. The action is brought on the theory that the defendant Joseph H. Hodgson, the only defendant served, is liable as surety, as a retiring partner, on certain transactions had with the firm of Gay & Sturgis, of which originally he was a member. The amended complaint alleges that from about July 1, 1910, to and including December 31, 1911, the defendants Hodgson, Gay, Sturgis and Hall were copartners engaged ia the stockbrokerage business under the firm name of Gay & Sturgis, and that during such period plaintiff employed said firm as his brokers to execute his orders to purchase, sell and deal in securities; that the firm accepted said employment and agreed to execute plaintiff’s orders for the purchase and sale of and the dealing in securities, and p'aintiff agreed to furnish money and securities as margin for the purpose of carrying out plaintiff’s orders; that during the period between July 1, 1910, and December 31, 1911, plaintiff had on deposit with such firm large sums of money and securities as margin for the purpose of carrying out his orders, and plaintiff gave numerous orders to said firm to purchase and sell and deal in securities for plaintiff; that said firm accepted the orders and notified plaintiff of the execution of such orders, and from time to time plaintiff deposited with the firm further moneys and securities upon the representation that his orders had been and were being executed; that, according to the notices and statements sent to plaintiff, defendants should have had in their possession or under their control on December 31, 1911, securities belonging to plaintiff of the value of $266,552, and plaintiff owed defendants $33,723.42 for advances alleged by them to have been made in the execution of plaintiff’s orders; that on or about December 31, 1911, such partnership was dissolved and the business was continued by the defendants Gay, Sturgis and Hall under the firm name of Gay & Sturgis, and such firm continued in possession of plaintiff's securities. On May 22, 1914, a petition in involuntary bankruptcy was filed against the firm, and on June 8, 1914, it was adjudicated a bankrupt. Prior to May 22,
Ordered accordingly.