The Express.
London, England, 1860-02-23 00:00:00

COURT OF QUERN% BENCH,-FEB. 22.

Sittings at NW Prtoa, aftar Tarn, kr Luadon.—(BelOra
the Lord Mkt Cookbara and a Special Jury.)

WATKINS V. SIMPHZILD.
Serjeent Pigott end Mr. DowdesweU appeared for the
plaintiff ; Mr. J. Browne and Mr. Brewer for the defendant.
The plaintiff fe a gentleman Residing in Guernsey, who has
speculated • good deal upon the Stook Exchange. The de-
(mutant is a member of gm Stock Exchange, although not a
sworn broker of the City of London, and the action was
brought to recover damages for that the defendant had
negotiated a loan for the plaintiff upon terms not authorised
by him, and whereby the plaintiff had suffered heavy looses
on accotust of the premature sale of erten railway shares.
It appears that in April of last year, the plaintiff
purchased through the defendant 6,000/. worth
of stock of the London and North Western
Railway Company, for the sum of 4,7651. Se. 6d.
To pay for the stock, however, it became necessary for the
plaintiff to apply to the defendant to assist him to negotiate
a loan of 4,2301. for three months. This the defer:dent m-
dertook to do, and having communicated with Sheppard and
Boos, stockbroker,, who are accustomed to advance matey
on the security of shares he announced to the plaintiff that
those gentlemen were willing to advance the money at 4} per
cent., and upon the usual terms- -which as far as the Keen.
Sheppard was concerned meant a retention by the lender of
a stun sufficitiat to cover a margin of 10 per cent. on the price,
of the stock at the date in question, and likewise that that
margin of 10 per cent, should be kept up throughout the pa
Hod of the loan, in order to protect the loaders against any
fall, no matter how great, in the market price of the stock ;
it being further stipulated that if the margia
was not kept up at 10 per met., the lenders with
whom the shares were deposited as security for the advance,
might sell the shares et the market price of the day.
TM plaintiff agreed to take the money from Sheppard and
Sons, and made a deposit to cover the margin of 10 per ant.
Now it happened that the negotiation between the plain-
tiff and the defendant was entered into just on the eve of
the monetary crisis of last spring, when 1n consequence of
the alarm mused by the breaking out of the war between
France and Austria money team suddenly very dear. The
loan was advanced on the lith of April, the price of London
and North Western Stock being then 961. However, be-
tween that and the next settling day, the 29th, there was a
fall down to 86 or 87. Oa that day, therefore, the Messrs.
Sheppard wrote to the defandent—they not reeognisiog the
plaintiff in the transaction at all—directing attention to the
great fall in the value of the shame, and requiring
the merge to be raised to 10 per cent. Thereupon
the defendant attempted to seek oat the plaintiff, and be oalled
tor him at the Jewel= Coffee-home, where plaintiff said be
wee to be found. He wrote to him at Gnerneey, but all
without avail. He was wholly trouble to get at the plaintiff
to inform him that it was necessary, in consequence of the
depreciation in the market, to make good the deficiency in
the margin of 10 per cent, otherwise the shares would be sold
at a great loss. The defendant then endeavoured to induce
the Messrs. Sheppard to delay realizing the shares. However
upon the 2nd of May, those gentlemen sold a portion of the
stock, the price being from 86 to 87, and between that and the
Bth the remainder, the stock altogether realising a sum of
4,2801. Oat of that a.nount the Mews. Sheppard paid
themselves 4,2301, the sum advanced, and 161. 13s. 8d by
way of interest, banding over the balance of 331 6a. 4d. to the
defendaut, to be placed to the credit of his client.
The defendant did not see anything of the plaintiff until the
12th of May, when be acquainted him with the sale of the
shares. Neierthelesa, upon the 22nd of June, the price of
London and North Wooten. having by that time risen to 90,
the plaintiff came to the defendant, and tendering to him the
4,2301. advanced by the Messrs. Sheppard eemanded the
shares. Of acres with that demand the defendant could
not comply, the shares having bests diapered of more than a
meth previously. The plaintiff therefore brought this action
to recover the difference between what the Awe fetched
land that which the plaintiff might have sold them for at any
I time during the three months for which the loan of Meson.
Sheppard was advanced. His contention was that it formed
no part of his contract with the de/cadent, that the
margin was to be maintained throughout the whole
period of the loan at 10 per cent., although he
agreed to deposit in the first 11161111420 a sum equal to that
amount. If that were so the defendant must be held respon-
sible for the premature sale of the abates. The d-feedaat
set up not only the particular agreement entered into with
the plaintiff, but likewise the custom of the Stock Exchange,
se binding the plaintiff, not only to make up the original
deposit of 10 per cent., but likewise to maintain it through-
out the period of the loan. The plaintiff knew the defindeit
was getting the money from the Messrs. Sheppard, and it
was proved beyond all doubt that those gentlemen never
advanced money except upon the term contended for by the
defendant. The plaintiff had throughout the proceedings
played the part of a abufftir. Here was a man experienced
on the Stock Exchange keeping out of the way when the
settling day came, because he knew the market was falling,
and that there were differences to be made good—now seek-
ing by a bye-point to evade the natural results of his con-
tract.

The jury found for the plaintiff—damage', 8201. How-
ever, on the application of Mr. J. Browne, the Lord Chief
Justice ordered execution to be atiqed unul the 6th day of
next term.

SECOND COURT.
Sittings at Nisi Prins, at Gulidimll—(Before Mr. Justice
Crompton and a Bpsotel Jury.)

OOOPER P. THE NATIONAL LEAGUE NEWSPAPER COMPANY.