Goodbody & Company, Inc. v. Charles F. McDowell

RONEY, Circuit Judge:

This diversity action, brought by a stock brokerage firm to recover 900 shares of Xerox stock and dividends thereon from a former customer who received the stock through clerical error, raises the issue of whether the Texas statute of limitations bars the suit. The district court characterized the case as an action for conversion which is barred by a two-year statute of limitations. Vernon’s Tex.Civ.Stat.Ann. Art. 5526(2). 1 We reverse on the ground that the cause of action for conversion in this case did not accrue until the plaintiff demanded and the defendant refused…