Smyth v. Glendinning

Supreme Court of Pennsylvania
Smyth v. Glendinning, 194 Pa. 550 (Pa. 1900)
45 A. 364; 1900 Pa. LEXIS 438
Brown, Dean, Fell, Green, Mestrezat, Mitchell

Smyth v. Glendinning

Opinion of the Court

Opinion by

Mr. Justice Dean,

The findings of fact and conclusions of law, so' clearly and concisely stated by the learned judge of the court below, are fully vindicated by the evidence and the law. We can say nothing which will add to their force. But there is one material fact which is not noticed, and it is undisputed. No matter what the character of the dealings between Graham and Glendinning & Company, or Huhn & Glendinning, their successors, when the transactions had ended, Graham settled with both firms after their dissolution, respectively on May 15, 1893, and May 15, 1895, paid his indebtedness to their successors, and took up all his stocks. The last settlement was on April 22, 1896, more than eighteen months before this bill was filed. We said in Lex’s Appeal, 192 Pa. 313, opinion by Justice Mitchell, who, after discussing the evidence tending to show it was a gambling transaction : “But apart from this consideration the evidence clearly showed an election by the appellant to treat the last transaction as a purchase (all previous ones being closed), and to settle the account on that basis. Under Peters v. Grim, 149 Pa. 163, Repplier v. Jacobs, 149 Pa. 167, McNaughton Co. v. Haldeman, 160 Pa. 144, and Anthony & Co. v. Unangst, 174 Pa. 10, this made it valid, whatever had been its original character.” It will be noticed from the testimony that, in every instance, the brokers in the purchase and sale of stocks acted as the agents of Graham, and in every ease there was an actual sale, purchase and delivery; therefore, what*563ever may have been the nature of the previous transactions as to Graham, he finally legitimatized them all by paying his indebtedness and departing with his stocks. We hold this rule to be well settled, and it is directly in point in this case.

The decree of the court below is affirmed.

Reference

Full Case Name
Isaac S. Smyth and John Field, surviving and liquidating partners of the late firm of Young, Smyth, Field & Co. v. Ellen Glendinning, Robert E. Glendinning and the Girard Life Insurance Annuity and Trust Co., executors of Robert Glendinning, and George A. Huhn
Cited By
8 cases
Status
Published
Syllabus
Contract— Gambling contract — Brokers. Where there has been a long course of dealings in stock between a broker and a customer, and the customer has finally treated the-last transaction as a purchase, and settled with the broker on this basis, paying his indebtedness, and taking away all his stocks, the settlement will legitimate all prior transactions, whatever may have been their original character. Where a transaction between a broker and his customer involves an actual purchase or sale, with no understanding that there is never to be a delivery, the transaction is not of a gambling character. Trusts and trustees — Principal and agent — Earmarking fund. Where an employer authorizes his bookkeeper to sell the employer’s promissory notes to note brokers, and to deposit the proceeds of the notes in the bookkeeper’s private bank account, with moneys of his own, and the bookkeeper loses the money so deposited in stock transactions, the employer has no right of action against the brokers with whom the bookkeeper dealt.