Gruman v. . Smith
New York Court of Appeals
Appeal from judgment of the General Term of the Superior Court of the city of Hew York, affirming a judgment in favor of defendant entered upon an order dismissing plaintiff’s complaint on trial. (Reported below, 12 J. & S. 389.) This action was brought by plaintiff, as assignee in bankruptcy of Fitch & Co., stock-brokers, to recover an alleged balance on a stock transaction.
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Appeal from judgment of the General Term of the Superior Court of the city of Hew York, affirming a judgment in favor of defendant entered upon an order dismissing plaintiff’s complaint on trial. (Reported below, 12 J. & S. 389.) This action was brought by plaintiff, as assignee in bankruptcy of Fitch & Co., stock-brokers, to recover an alleged balance on a stock transaction. The plaintiff’s evidence on the trial tended to show that Fitch & Co. purchased 100 shares Rock Island railroad stock for the defendant on a margin, May 14, 1870, and carried the stock for him. Fitch & Co. called for…
1Opinion of the Court
Church, Ch. J.
The learned court below erred, we think, in holding that a sale of the stock by Fitch & Co., without notice, although irregular, and technically amounting to a conversion, operated as matter of law as an extinguishment of the entire claim of the plaintiff, and debarred him from maintaining an action thereon. The relation of the parties was that of pledgor and pledgee. (Markham v. Jaudon, 41 N. Y. 235; Baker v. Drake, 66 id. 518.) For a conversion of the pledge, the pledgee was liable for the damages sustained by the defendant, but whether they would equal the amount of the claim…
2Cases cited2 opinions
- Markham v. . JaudonNew York Court of Appeals · 1869
- Baker v. . DrakeNew York Court of Appeals · 1873
3Cited by45 opinions
- Richardson v. ShawSupreme Court of the United States · 1908
- Galigher v. JonesSupreme Court of the United States · 1889
- Wright v. . Bank of the MetropolisNew York Court of Appeals · 1888
- McKinley v. WilliamsCourt of Appeals for the Eighth Circuit · 1896
- Porter v. . WormserNew York Court of Appeals · 1884
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