Allen-West Commission Co. v. Grumbles

Citations

• 129 F. 287
• 63 C.C.A. 401
• 1904 U.S. App. LEXIS 4043

Syllabus

<p>1. Gift — Intention of Donor — Renunciation of Dominion — Delivery.</p> <p>A fixed intention by the donor to irrevocably divest himself of title, dominion, and control of the subject of the gift at the very time he attempts to make it, the actual accomplishment of that purpose, and the delivery of the subject of the gift, are indispensable conditions of a valid donation.</p> <p>2. Same — Corporate Stock — Delivery of Certificates.</p> <p>The delivery of the subject of the gift must be made in the most effectual mode to command dominion over it.</p> <p>The delivery of certificates of shares of stock, when they are present and their delivery is practicable, is indispensable to a valid gift of stock in a corporation, because the possession of the certificates commands the dominion of the stock in the most effectual way.</p> <p>3. Same — Delivery of Written Assignment — Effect.</p> <p>The delivery of a written assignment of stock in a corporation is ineffectual to make a valid gift, while the donor retains the certificates.</p> <p>4. Same — Evidence—Conclusions.</p> <p>G., the owner of 110 shares of stock in a corporation, delivered a written assignment of his interest in its business to his wife in May, 1899, when he was free from debt. He retained the certificates of the shares, voted them, and received dividends upon them, in money and in stock, until February, 1903, when he had become heavily involved in debt. He then transferred the stock to his wife by an indorsement and surrender of the certificates to the corporation.</p> <p>Held, G. had no intention in May, 1899, to then divest himself of the dominion and control of the stock, a delivery of the certificates of the stock was indispensable to accomplish such a purpose, and the delivery of the written assignment, while the donor retained and used the certificates to control the stock, was insufficient to complete a valid gift.</p> <p>If 2. See Gifts, vol. 24, Cent. Dig. § 50.</p> <p>5. Garnishment — Order on Ga