Rudy Luther v. Loewi & Co., Inc. And Merrill J. Anderson

ROSS, Circuit Judge,

dissenting.

The practical effect of the primary factual determination by the trial court was that Mr. Luther sold 3,500 shares of stock to Loewi & Co., Inc. at a price at least $3,500 below the market price in exchange for a promise that Loewi would use its “best efforts” to make up the $3,500 loss plus another $3,500, but without any guarantee to even make up the $3,500 loss. I consider it to be illogical and highly unlikely that an intelligent investor would make such a stupid arrangement with his broker, and I further believe that if in fact such a one-sided deal was made, Loewi breached its ethical, if not its legal, responsibility to its customer.

These observations, coupled with the absolute admission by Anderson that a guarantee had been made, as set forth on page 4 of the majority opinion, and considering the equivocal nature of much of Mr. Anderson’s other testimony, cause me to believe that the trial court made a clearly erroneous factual determination concerning the oral agreement and that the judgment should be reversed.