Darr v. Fidelity Title & Trust Co.

Citations

• 243 Pa. 591
• 90 A. 368
• 1914 Pa. LEXIS 671

Syllabus

<p>Brokers — Stock brokers — Purchase of stock on margin — Hypothecation by broker — Conversion.</p> <p>In an action by a stock broker to recover the balance due upon the purchase price of certain stocks purchased for the defendant, it appeared that, the defendant had given an order to the plaintiffs for the purchase of 500 shares of stock, which was accordingly done; that he Had paid part of the purchase price to the plaintiffs and they carried the shares as security for the remainder of the purchase price; that within a few days after the stock was purchased the plaintiffs hypothecated the shares along with other collateral. belonging to them as security for loans in excess of the amount due from the defendant; that later the plaintiffs received telegrams demanding the production of the shares in question and that the stock was redeemed and the plaintiff- presented it to defendant’s agent, demanding the remainder of the purchase price, and this not being forthcoming the stock was retained; that later the shares of stock pledged with the plaintiff were sold for a large loss. Reid, that the plaintiff was not entitled to recover.</p>