Cochran v. Adams

Citations

• 180 Pa. 289
• 36 A. 854
• 1897 Pa. LEXIS 920

Syllabus

<p>Partnership — Stock exchange — Arbitration committee.</p> <p>The constitution of a stock exchange provided for an arbitration committee whose duty it was to investigate and decide all claims and matters of difference between members of the exchange which may be brought before the committee “ arising from transactions in bonds, bullion, stocks or other securities, or from other transactions in money; ” also that “ the liability of every membership, whether solvent or insolvent, to its owners’ creditors in the stock exchange shall include all indebtedness to a firm, any member of which is also a member of the exchange, contracted during the existence of the copartnership.” The membership of a deceased member was sold by the exchange, and suit was brought by the executrix of the deceased against the exchange to recover the proceeds. An affidavit of defense was filed in which it was averred that the deceased was a member of a partnership, all of the members of which belonged to the exchange; that notice had been served upon the exchange by the surviving partners that the deceased was indebted to their firm at the time of his death for an amount in excess of the claim in the suit, and that the arbitration committee had awarded the whole amount of the proceeds of sale to the surviving partners. There was nothing in the affidavit of defense to show that the claim of the surviving partners was “ for transactions arising in, or relating to the business of banker or stock exchange broker,” or that the claim was “contracted during the existence of the copartnership.” Held, that the affidavit of defense was insufficient to prevent judgment.</p>