Shaw v. Spencer
Massachusetts Supreme Judicial Court
Bill in equity against Spencer, Vila 5c Co. and Mellen, Ward 5c Co., two firms of brokers in Boston, and the Calumet Mining Company, a corporation under the law of Michigan, praying for an injunction to restrain Spencer, Vila & Co. from making any sale or transfer of two thousand shares of the stock of that company, or of the certificates of the same, and the company from recognizing the validity of any such sale or transfer otherwise than to the plaintiff.
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Bill in equity against Spencer, Vila 5c Co. and Mellen, Ward 5c Co., two firms of brokers in Boston, and the Calumet Mining Company, a corporation under the law of Michigan, praying for an injunction to restrain Spencer, Vila & Co. from making any sale or transfer of two thousand shares of the stock of that company, or of the certificates of the same, and the company from recognizing the validity of any such sale or transfer otherwise than to the plaintiff. A temporary injunction was granted, and at the hearing, before Wells, J., the material facts appeared as follows: On the; 28th of…
1Opinion of the CourtFoster, J.
The court have bestowed upon this case a degree of attention commensurate with the importance of the principles on which its decision must depend and the magnitude of the amount involved. One of two innocent parties must bear a heavy loss, caused by the gross fraud of a third person.
Under the circumstances disclosed by the evidence, it was a flagrant breach of trust and a criminal fraud to transfer the certificates of stock to Spencer, Vila & Co. They were the property of the plaintiff, who is entitled to reclaim them from any one but a bond fide holder for value without notice. Charles…
2Cases cited1 opinion
- Field v. SchieffelinNew York Court of Chancery · 1823
3Cited by151 opinions
- National Bank v. Insurance Co.Supreme Court of the United States · 1881
- Baird v. Fidelity-Phenix Fire Ins. Co.Tennessee Supreme Court · 1942
- Allen v. Puritan Trust Co.Massachusetts Supreme Judicial Court · 1912
- Gulf Production Co. v. Continental Oil Co.Texas Supreme Court · 1939
- United States Fidelity & Guaranty Co. v. Adoue & LobitTexas Supreme Court · 1911
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