McRae v. Vogler

By her complaint in this suit plaintiff seeks a decree declaring that a transaction in which she borrowed $6,000 and transferred to defendants certain stocks subject to an “option to [repurchase” was a security transaction; that the subsequent transfer of such stocks without her consent was a conversion of the stocks; and that she was entitled to a judgment for $26,000 as the value of the stocks, together with $25,000 in punitive damages.

Defendants filed an answer alleging as an affirmative defense that they sold their interest in the stocks to Robert and Helen Sands subject to any interest…