i
L
CO 38142
REG
H. M. SUPREME
COURT,
REA 28 NOV IL
Shanghai, Aug. 25.
Before F. S. A. BOORNE, Esq., c.M.0,,
Acting Jodge,
J. A. D. WATT v. T. E. DUNN,
Shanghai, Aug. 30.
Judgement was given in this cano, Mr. Allan G. Mossop appeared for the plaintiff, and Mr. F. Alan Robinson (on behalf of Mr. H. P. Wilkinson)- for the defendant.
His Lordship's judgement was de followe:-
In this case the plaintiff sues the defendant for a balance of Tls, 1,650 alleged to be due under a contract made by the plaintiff as broker for the defendant for the purchase of 200 Anglo-Java shares. The facts are as follows: On March 30, 1910. Mr. Watt the plaintiff as broker pu chased from Mr. G. W. Cooper, an employé of Mr. Wattie, a promoter of the Anglo-Java Company, 200 Anglo- Javas at 45 for delivery on the special settlement day, the scrip not being then issned. And on the same day he sold the same number to Mr. Dans the defendant on the same terms. On the date of the special settlement, April 18, 1910, Dunn informed Walt that he was unable to take up the shares. Watt settled independently with Cooper; and asked Dunn tó come to his office and discuss the affair. Mr. Dunn there met Mr. O. Moller who, he contends, Mr. Watt repre- sented to him as the other principal. Le, the person from whom the shares bad been bought. Watt denies this; but I find that it was so, for the fact that Moller some months later informed Dann that he had sold no shares to Watt at 45, was shown to have had a strong effect on Dunn's mind. to have come as a surprise to him-- and to have determined him to stand apen bis legal rights, whence this action.
Although Watt was 30 outside broker, this contract was made in the neval Shanghai forward share contract form, and subject to the Rules of the Bhanghai Stock Exchange. In order to determine the rights of the parties it is essential to understand exactly what the course of business under a Shang- bai forward ebare-contract was at the period in question. Now, the practice of the Shanghai Stock Exchange it forward business was, when this contract was entered into-I believe it is now or is to be altered-that (1) a share broker made two distinct contracts, one between himself and the bayer, and one between himself and the seller: while at home a share broker makes one contract-that between buyer and seller. The Shanghai sharebroker seat the buyers bought-note and kept the Bold note himself, and sent the seller a sold-note keeping the corresponding
238
42430
27 OCT 191)
Page 240Page 241