Edmond L. Brown v. Harold G. Cole

Summary

The Texas Supreme Court affirmed the Court of Civil Appeals, holding that petitioner E. L. Brown made a sale of securities to respondents and was an unlicensed dealer who failed to obtain the required permit, making him liable for the purchase price plus interest. The Court rejected Brown's arguments that the transaction was a joint adventure or exempt under Section 3(k). Justice Smith dissented, arguing the transaction was exempt and that Brown was merely an agent in a joint venture.