Stoker v. Cogswell
New York Supreme Court
In 1851, the defendant, Hiram Hyde, of Truro, Nova Scotia, borrowed of James G. C.ogswell, of Halifax, £3,000, Nova Scotia currency, pledging as security four certificates representing 120 shares of the capital stock of the American Telegraph Company (a corporation of the state of New York) of the par value of $12,000. The agreement between Hyde and Cogswell provided as follows : “ These certificates are to be transferred to the name of the said James C. Cogswell, but the…
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In 1851, the defendant, Hiram Hyde, of Truro, Nova Scotia, borrowed of James G. C.ogswell, of Halifax, £3,000, Nova Scotia currency, pledging as security four certificates representing 120 shares of the capital stock of the American Telegraph Company (a corporation of the state of New York) of the par value of $12,000. The agreement between Hyde and Cogswell provided as follows : “ These certificates are to be transferred to the name of the said James C. Cogswell, but the said Hiram Hyde is to be entitled to all the profits so long as he shall pay to the said James C. Cogswell six per cent,…
1Opinion of the Court
Allen, Justice.
I am of the opinion that the right to redeem the stock pledged remained in the pledgor Hyde after default in payment of the debt to Cogswell, the pledgee, at the day.
The law leans against forfeitures and penalties, and will not exact them except upon the plainest and clearest provisions showing the clear intention of the contracting parties to create them. Here the peculiar ground of the claim in the contract relied upon as terminating all rights of the pledgor upon non-payment at the day, indicates anything but an intent to extinguish those rights upon such default. If the…
2Cited by4 opinions
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