Brown v. Union Savings & Loan Ass'n

Citations

• 28 Wash. 657
• 69 P. 383
• 1902 Wash. LEXIS 531

Syllabus

<p>PLEDGE OF BUILDING AND LOAN ASSOCIATION SHARES-CANCELLATION OF CERTIFICATE-ACTION BY PLEDGEE.</p> <p>A pledgee of shares of stock in a building and loan association, which have been called in, paid off, and canceled without notice to him or a demand for the surrender of the certificate held by him in pledge, has a right of action against the association for the damages suffered by him in consequence of the destruction or conversion of such shares.</p> <p>SAME-NOTICE OF PLEDGE.</p> <p>A corporation which pays off shares of stock to the holder thereof as shown on its books, without the return of the certificate issued to him, does so at its peril, since, under Bal. Code, § 4264, which provides that any stockholder may pledge his stock hy a delivery of the certificate, but may, nevertheless, represent the same at all meetings and vote as a stockholder, it is unnecessary for the pledgee to notify the corporation of the pledge nor contemplated by the statute that' the pledge be shown on the corporate books by a transfer of the stock.</p> <p>SAME-MEASURE OF DAMAGES.</p> <p>Where a building and loan association has a defense against the original holder of a certificate of stock issued by it, a pledgee of such certificate, who has a right of action for damages against the corporation for the conversion or destruction of such shares, is entitled to recover only the amount due him from the pledgor, with interest accrued and accruing thereon at the contract rate; and his measure of recovery would not be the full value of the stock at the date of conversion, unless his actual damage was equal thereto.</p>