Gould v. Central Trust Co.
New York Supreme Court
Trial by the court. This action was brought by William R. Gould and another, against The Central Trust Company, Thomas S. Marlor and others, to compel the trust company to sell certain stock, which had been wrongfully hypothecated to it by John Bonner & Co. On October 15, 1877, the plaintiffs borrowed from John Bonner & Co. $50,000, on the security of 800 shares of Chicago & Alton Railroad stock.
Read the full summary
Trial by the court. This action was brought by William R. Gould and another, against The Central Trust Company, Thomas S. Marlor and others, to compel the trust company to sell certain stock, which had been wrongfully hypothecated to it by John Bonner & Co. On October 15, 1877, the plaintiffs borrowed from John Bonner & Co. $50,000, on the security of 800 shares of Chicago & Alton Railroad stock. Soon afterwards John Bonner & Co. borrowed from The Central Trust Company $100,000, on the security of 500 shares of the plaintiff’s stock, and certain other stocks and bonds, including $3,000 of…
1Opinion of the CourtVan Vorst, J.
The claim of the plaintiffs is reasonable and just, and, in arguing that the Central Trust Company, under the circumstances of this case, should have proceeded pari passu, in the application of the securities deposited with it by Bonner & Co., as collateral security to the loans made to them, so that what loss should be occasioned to the parties whose stock and bonds Bonner & Co. wrongfully pledged to it shall fall on them ratably, they contend only for what equity approves. Had they known of the rights and claims of the plaintiffs and Marlor, at the time they sold, they should have so…
2Cases cited2 opinions
- Barnes v. . MottNew York Court of Appeals · 1876
- Cheesebrough v. MillardNew York Court of Chancery · 1815
3Cited by4 opinions
- Asylum of St. Vincent De Paul v. McGuireNew York Court of Appeals · 1925
- McBride v. Potter-Lovell Co.Massachusetts Supreme Judicial Court · 1897
- Vian v. HilbergNebraska Supreme Court · 1923
- Union Pac. Ry. Co. v. SchiffU.S. Circuit Court for the District of Southern New York · 1897