252 Mass. 287 | Mass. | 1925
In this action the plaintiff is seeking damages for a breach of contract, depending for his proof upon certain letters and telegrams. Evidence was introduced to show that in the month of February, 1910, the plaintiff was carrying on margin with a brokerage firm one thousand shares of the common stock of the United States Smelting, Refining and Mining Company, hereinafter called the Smelting Company, and ten shares of United Shoe Machinery Corporation stock; that about February 4,1910, upon receipt of a demand from the brokers for payment of $10,000, he telegraphed the defendant asking him to call on them and do what he could to protect the plaintiff’s interests, offering to compensate him in any reasonable amount for services rendered or money expended, if any, in connection therewith. The defendant sent a telegram to the plaintiff dated February 9, 1910: “Brokers kept smelting shoe and pillsbury I will protect account.” It is the contention of the plaintiff that these two telegrams constitute the original contract and that thereby the defendant became bound to deposit money or securities with the brokers when required to protect the account. The above mentioned stock was
If it be assumed that the defendant was under obligation to buy for the account of the plaintiff stock of the Smelting Company at $20 a share or lower, there has been no breach proved because it did not at any time sell below $20 per share. On February 25, 1915, it was quoted at “20 - 20^ ” and on no other date was there a lower quotation. It does not appear how much was sold on that date, or what opportunity, if any, a person would have had to buy at those prices. Shortly before the stock reached this lowest quotation, the defendant advised the plaintiff that it would be unwise to buy it, and the plaintiff then could have executed his own orders directly with the broker, or by sending money to the defendant for the purchase of any amount of stock desired which could be procured at or near the price of $20 per share. Even when a binding agreement by a broker with a customer to carry stocks on margin is broken by a sale of the stocks, the customer is entitled to nominal damages only in the event of his being able to purchase the shares at approximately the price for which the broker sold them. Hall v. Paine, 224 Mass. 62.
Furthermore, if it be assumed that in February, 1910, there was a contract by which the defendant was to protect the plaintiff’s account, liability under it, unless it had been modified, was fixed when all stock in that account was sold. After a breach it would require a new offer and a new accept
The order directing a verdict for the defendant was right. If the two telegrams and letters offered by the plaintiff and excluded had been in evidence the result reached would be the same.
Exceptions overruled.