McKINNON SEC. v. HORNUNG


69 A.D.2d 118 (1979)

Thomson McKinnon Securities, Inc., Appellant, v. Paul Hornung, Doing Business as Rainbow Research Co., Respondent

Appellate Division of the Supreme Court of the State of New York, First Department.

July 10, 1979


Attorney(s) appearing for the Case

Edward J. Boyle (William C. Bieluch, Jr., with him on the brief; Hall, McNicol, Hamilton & Clark, attorneys), for appellant.

FEIN and LUPIANO, JJ., concur with BLOOM, J.; BIRNS, J. P., and LANE, J., dissent in an opinion by BIRNS, J. P.


BLOOM, J.

This is an action by a registered security broker against a customer to recover for losses incurred as a result of a "short sale" made by the customer.

Defendant is a rather sophisticated trader in securities who maintained multiple accounts with numerous security dealers. Plaintiff is one such dealer. In the early part of January, 1975, defendant instructed plaintiff to sell for his account...

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