Dexter Horton National Bank v. Washington-Alaska Bank

Citations

• 86 Wash. 452
• 150 P. 1176
• 1915 Wash. LEXIS 1213

Syllabus

<p>Corporations — Stock—Pledge of Stock — Evidence—Sufficiency. A pledge of mining stock as collateral security for advances made by one bank to another is sufficiently established by an indefinite oral agreement to the effect that the stock, left in possession of the pledgee, was to be held to protect the pledgee for advances made to the pledgor .pending negotiations for an extensive credit or permanent loan, which failed of consummation; especially in view of the subsequent attitude of receivers of the pledgor, in litigation with the pledgee, whereby the receivers established by a judgment that the advances were made solely in consideration of such pledge of the stock as collateral security, which exceeded in value the amount of the advances; and thereafter, by virtue of such judgment and claim of collateral, the receivers contracted with the pledgee with reference to the stock on the assumption that it had been pledged and was held as collateral.</p> <p>Judgment — Res Judicata — Matters Concluded. Where receivers of an insolvent bank impounded money in transit that had been sent to a creditor bank to apply on overdrafts and advances, a judgment in favor of the receivers, based on their claim that the advances had been made on the sole consideration of mining stock theretofore pledged therefor and then held by the creditor bank as collateral security exceeding in value the amount of the advances, is conclusive that the mining stock had been pledged by the insolvent as collateral for the advances, and precludes the receivers from making a contrary claim in subsequent litigation to foreclose the pledge.</p>