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BRYAN v. MERRILL LYNCH, PIERCE, FENNER & SMITH

No. 76-2137.

565 F.2d 276 (1977)

Edward Lee BRYAN, Appellee, v. MERRILL LYNCH, PIERCE, FENNER & SMITH, INC., Appellant.

United States Court of Appeals, Fourth Circuit.

Decided November 9, 1977.

Attorney(s) appearing for the Case

James E. Davis, Jr. and Howard E. Manning, Raleigh, N.C. (Manning, Fulton & Skinner, Raleigh, N.C., on brief), for appellant.

L. Bruce McDaniel (McDaniel & Fogel, Raleigh, N.C., on brief), for appellee.

Before CLARK, Supreme Court Justice, HAYNSWORTH, Chief Judge, and RUSSELL, Circuit Judge.

DONALD RUSSELL, Circuit Judge:

In December of 1970, the plaintiff-appellee, Edward Lee Bryan, opened a margin account with the defendant-appellant, Merrill Lynch, Pierce, Fenner & Smith, Inc. In a margin account, such as Bryan established with Merrill Lynch, the broker permits the customer to purchase stock or securities by the payment of an agreed percentage of the purchase price, leaving the stock as collateral for the balance due; on this balance, the broker...

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