A statute prohibited bucketing operations by dealers in securities and commodities, and provided penalties for such offenses. Plaintiff alleges that, acting without knowledge of defendant's illegal operations, he gave the defendant an order for the purchase of stock, which, he says, was not executed, as defendant reported, but "bucketed" in a manner prohibited by statute. Plaintiff sued to recover damages. Defendant demurred on the grounds (1) that the transaction referred to was not bucketing, but (2) that if it was, defendants were not liable to this plaintiff as the latter was not within the class of persons intended to be benefited by the statute. Held, plaintiff had stated a cause of action. (One justice concurred specially, on the ground that plaintiff had stated a good cause of action in contract or for conversion.) Kaiser v. Butchart, (Minn. 1937) 274 N. W. 680.
Michigan Law Review,
TORTS - VIOLATION OF PENAL STATUTE AS CIVIL WRONG - BUCKETING - INTENTIONAL WRONG,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol36/iss5/22