James Talcott, Inc. v. Margulis

Argued October 10, 1949. The plaintiff appealed from the dismissal of its bill in equity, the court below having held that there was an adequate remedy at law.1

The facts were without dispute. Defendant procured from plaintiff a loan of $15,000, to be used for the purchase of a business which was to be incorporated, with 200 shares of stock to be issued the defendant. The defendant agreed to pledge this stock with the plaintiff as collateral security for the loan. The corporation was duly organized; a certificate evidencing the ownership of 200 shares of stock was issued to the defendant who,…