William M. Baker, Respondent v. Albert A. Drake Appellants

Summary

The New York Court of Appeals affirmed the judgment, holding that a broker‑customer relationship in a speculative stock purchase is that of pledgee and pledgor, that a broker’s sale without notice constitutes conversion, that oral evidence of customary broker usage is admissible to interpret the contract, and that parties may contract for any method of disposing of the pledged stock so long as it does not violate law or public policy; damages are measured by the cost to replace the stock within a reasonable time, less amounts due to the broker.