BAIRD v. FRANKLIN

Nos. 104, 105.

141 F.2d 238 (1944)

BAIRD v. FRANKLIN. NEW YORK YACHT CLUB v. SAME.

Circuit Court of Appeals, Second Circuit.

February 25, 1944.


Attorney(s) appearing for the Case

Granville Whittlesey, Jr., of New York City (Donovan, Leisure, Newton & Lumbard, Theodore S. Hope, Jr., and John A. Morhous, all of New York City, on the brief), for plaintiff-appellant Mary Stevens Baird.

William Greenough, of New York City (Patterson, Eagle, Greenough & Day and J. Harlin O'Connell, all of New York City, on the brief), for plaintiff-appellant New York Yacht Club.

William Dean Embree, of New York City (Milbank, Tweed & Hope, Lawrence Bennett, and Edward N. Perkins, all of New York City, on the brief), for defendant-appellee.

Milton V. Freeman, Asst. Sol., Securities and Exchange Commission, of Philadelphia, Pa. (Orrin C. Knudsen, Counsel, Trading and Exchange Division, and W. Victor Rodin, Atty., Securities and Exchange Commission, both of Philadelphia, Pa., on the brief), for Securities and Exchange Commission as amicus curiae.

Before SWAN, AUGUSTUS N. HAND, and CLARK, Circuit Judges.


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...

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