Brittan v. Oakland Bank of Savings

Citations

• 124 Cal. 282
• 57 P. 84
• 1899 Cal. LEXIS 986

Syllabus

<p>Pledge of Bank Stock—Special Property of Pledgee—Invalid Sale— Transfer of Pledge.—A pledgee of a certificate of bank stock indorsed in blank by the former owner has a special property in it, and not a mere lien thereupon, and does not lose all rights and interest In the stock by an invalid private sale thereof, without complying with the requirements of the code, but in such case the purchaser becomes a transferee of the pledge, and is entitled to hold the stock as a pledge, with the rights enjoyed by the original pledgee, until the extinguishment- of the original obligation.</p> <p>Id.—Pledge of Indorsed Certificate by Agent—Bights of Pledgee and Owner.—An owner of a certificate of bank stock who has indorsed the same in blank, and delivered it to his agent, thus putting it into his power to negotiate the same, cannot recover from a bona fide pledgee of such agent for value, though pledged for the private account of the agent, without refunding or offering to refund the amount advanced by the pledgee to the agent thereupon.</p> <p>Id.—Title or Authority of Agent not Involved—Estoppel of Owner. The rights of the pledgee in such case do not depend upon the actual title or authority of the agent, but are derived from the acts of the real owner, which preclude him from disputing as against the pledgee the title or power which, through negligence or mistaken confidence, he caused or alloived to appear to be vested in the pledgor.</p> <p>Id.—Action for Conversion of Pledge — Evidence—Assignment of Claim against Insolvent Pledgor.—In an action by the original owner for a conversion of the pledged certificate of stock by the pledgee of his agent, by means of a sale thereof, where it appears that the proceeds of the sale were applied toward the payment of the indebtedness of the pledgor to the pledgee, an assignment by the pledgee of the claim for the residue of the indebtedness in an insolvency proceeding against the insolvent pledgor, and the subsequent assignment the