Logourl black

Sennott v. Rodman & Renshaw

United States Court of Appeals for the Seventh Circuit
474 F.2d 32 (1973)


Jordan Rothbart was a securities dealer and prior to 1958 was an employee of Rodman & Renshaw (Rodman) (defendant), a securities trading firm. Jordan’s father William Rothbart was a partner in Rodman throughout the period at issue here. Around 1960, Jordan began trading on his own account. He befriended a fellow trader, Richard Sennott (plaintiff), and passed along numerous investment recommendations to Sennott which he got from his father. Jordan offered to have an account opened for Sennott at Rodman. Sennott accepted, and Jordan placed orders through Rodman on Sennott’s behalf. Between 1964 and 1966, Sennott purchased around $2 million in securities in this manner, mostly through Jordan and on the investment recommendations of his father. In early 1964, Jordan offered Sennott stock options in a company called Skyline Homes. Sennott agreed to purchase $142,000 worth of these options. Jordan told Sennott that the options were highly confidential and that he could not discuss them with anyone, even William. Sennott complied. He did not meet William until after making the order. The stock options did not exist. Jordan actually deposited the checks in a personal account. In late 1964, Rodman’s managing partner, Vernon Carroll, uncovered evidence of the fraud, and attempted to ask Sennott about it. On William and Jordan’s advice, Sennott refused to discuss the matter with Carroll. When Sennott finally learned that he had been defrauded, he sued Rodman, along with Jordan and William Rothbart. The trial court found against the Rothbarts and against Rodman in the amount of $99,600. Rodman appealed.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision. To access this section, start your 7-day free trial of Quimbee for Law Students.


The issue section includes the dispositive legal issue in the case phrased as a question. To access this section, start your 7-day free trial of Quimbee for Law Students.

Holding and Reasoning (Pell, J.)

The holding and reasoning section includes:

  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, start your 7-day free trial of Quimbee for Law Students.

Here's why 92,000 law students rely on our case briefs:

  • Reliable - written by law professors and practitioners not other law students.
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your class - works on your mobile and tablet.
  • 12,498 briefs - keyed to 168 casebooks.
  • Uniform format for every case brief.
  • Written in plain English - not in legalese and not just repeating the court's language.
  • Massive library of related video lessons - and practice questions.
  • Ability to tag case briefs in an outlining tool.
  • Top-notch customer support.
Start Your Free Trial Now