California District Court of Appeal
19 Cal. Rptr. 842 (1962)
Blackburn (plaintiff), an elderly widow, met Long in 1954 and selected him to serve as her investment advisor. Long was an employee of Walston & Company (defendant) prior to March 1957, and was an employee of Dean Witter & Company (defendant) from March 1957 to March 1958. Blackburn made numerous stock purchases through Long. In early 1957, Long persuaded Blackburn to buy stock in a non-existent company he called American Commercial Investment Company (ACIC). He gave Blackburn invented details about ACIC, which he said would pay ten percent interest on her investment. The receipts for the ACIC stock were different from the usual receipts Blackburn received; they were signed by Long only and were not issued by Walston or Dean Witter. The ACIC stock also did not appear on the monthly statements she received from Walston and Dean Witter. When Blackburn asked about the discrepancies, Long told her that the official receipts were not ready yet, and reassured her that he was acting on behalf of Walston or Dean Witter. He also told her that his employers had research divisions that determined what stocks were good to invest in. Blackburn sued Walston and Dean Witter on the theory that Long was an agent of his employers when he defrauded her. The trial court ruled in favor of Blackburn. The defendants appealed.
Rule of Law
Holding and Reasoning (Stone, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 222,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.