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BROWN v. ROYCE BROKERAGE, INC.

No. 79-2556.

632 F.2d 652 (1980)

Jack H. BROWN, Vernon Gatlin, Dan Gatlin, Sol Freed and William Bailey, Plaintiffs-Appellants, v. ROYCE BROKERAGE, INC. et al., Defendants, Shearson Hayden Stone, Inc., Defendant-Appellee.

United States Court of Appeals, Fifth Circuit. Unit A

December 12, 1980.

Attorney(s) appearing for the Case

Durwood D. Crawford, Dallas, Tex., for plaintiffs-appellants.

William D. Sims, Jr., T. Ray Guy, Dallas, Tex., for defendant-appellee.

Before THORNBERRY, RANDALL and TATE, Circuit Judges.

THORNBERRY, Circuit Judge:

Appellants were customers of Royce Brokerage, Inc., a commodity option broker. Appellants opened discretionary trading accounts with Royce in order to acquire certain cocoa options on the London Commodities Exchange. Royce was not a member of the leading exchanges, and therefore opened an account with appellee Shearson Hayden Stone, Inc., through which it executed orders on behalf of appellants. Claiming damages arising from the mishandling...

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