BLACK v. SHEARSON, HAMMILL & CO.

Docket No. 24234.

266 Cal.App.2d 362 (1968)

72 Cal. Rptr. 157

AARON BLACK et al., Plaintiffs and Respondents, v. SHEARSON, HAMMILL & CO. et al., Defendants and Appellants.

Court of Appeals of California, First District, Division Four.

October 3, 1968.


Attorney(s) appearing for the Case

Allen L. Neelley, Malcolm H. Bell, O'Melveny & Myers and Dewey, Ballantine, Bushby, Palmer & Wood for Defendants and Appellants.

Marshall H. Sevin for Plaintiffs and Respondents.


RATTIGAN, J.

The principal elements of this appeal are the duty of a stock broker, owed to his customers who purchase the securities of a corporation, to disclose to them material facts known to him concerning the corporation; the duty of a director of the corporation, owed to it, not to disclose the same facts if he acquired knowledge of them as a director; and the consequences which may arise when the broker and the director are the same person.

Appellant...

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