In re A. O. Brown & Co.
District Court, S.D. New York
In Bankruptcy. The question involved in this case is whether, if upon the bankruptcy ot a broker he has in his possession a number of shares of stock which is less .in amount than tlxat which he is bound to deliver to his customers, such shares are to be regarded as a common fund to which, in equity, all such customers are entitled. In this case the claimant had purchased 100 shares of Bay State Gas stock through the bankrupt firm.
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In Bankruptcy. The question involved in this case is whether, if upon the bankruptcy ot a broker he has in his possession a number of shares of stock which is less .in amount than tlxat which he is bound to deliver to his customers, such shares are to be regarded as a common fund to which, in equity, all such customers are entitled. In this case the claimant had purchased 100 shares of Bay State Gas stock through the bankrupt firm. The certificate, which had been purchased by the broker with the customer’s money and had been delivered to the broker, was subsequently sold by him and was never…
1Opinion of the CourtHand, District Judge
(after stating the facts as above). The question in this case turns, I think, entirely upon a question of fact, namely, whether the broker intended, when he purchased the shares of stock in question, to apportion them as the property of those persons to whom he was under obligation to deliver stock of a similar kind in the place of the stock which lie liad formerly converted. We have it on the highest authority that there is no earmark to shares of this sort. Richardson v. Shaw, 209 U. S. 365 at page 379, 28 Sup. Ct. 512, 52 L. Ed. 835. There are two possible cases: First, that there are no…
2Cases cited2 opinions
- Richardson v. ShawSupreme Court of the United States · 1908
- Baker v. New York National Exchange BankNew York Court of Appeals · 1885
3Cited by3 opinions
- In Re EsteyDistrict Court, S.D. New York · 1934
- Sexton v. American Trust Co.Court of Appeals for the Eighth Circuit · 1930
- In re All Star Feature Corp.District Court, S.D. New York · 1916