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and a margin and short agreement. These documents set forth
information concerning the account as well as its governing terms
and conditions. The customer agreement designated the type of
account as “JTWROS”, and the joint account agreement reflected a
similar designation creating an account “as joint tenants with
rights of survivorship and not as tenants in common”, whereby in
the event of death of one of the parties thereto, the “entire
interest” in the account would be vested in the survivor(s).
The agreements further made explicit that with respect to
joint accounts, all authority, obligations, and liability of the
tenants thereunder were joint and several. Any tenant could give
binding instructions with respect to assets in the account,
including buying, selling, or requesting distributions, and First
Southwest Company was entitled to rely on such instructions from
any tenant without further investigation. The agreements were
also covered by an express choice of law clause, to wit:
This Agreement and its enforcement shall be governed by
the laws of the state of Texas and shall cover
individually and collectively all accounts which the
undersigned has previously opened, now has open or may
open or reopen with FSWC, FSWC’S predecessor or any
introducing broker, and any and all previous, current
and future transactions in such accounts. * * *
Marco Listrom (Mr. Listrom) was the Valdes & Moreno broker
overseeing the account. Decedent contacted him in late 1999
seeking a broker to assist her in selling the recently acquired
eConnect stock. The account was funded on or about January 11,
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Last modified: May 25, 2011