Kahaley v. Haley

Citations

• 15 Wash. 678
• 47 P. 23
• 1896 Wash. LEXIS 276

Syllabus

<p>BAILEE — LIABILITY FOE CONVERSION — WHAT CONSTITUTES CONVERSION OF STOCK — EVIDENCE.</p> <p>. Where the bailor of a certificate of shares of stock agrees with a purchaser that a portion of the shares shall be transferred to him in consideration of a certain price, a portion of which is paid down, and the bailee in whose hand the certificate is held, consents thereto and agrees to hold the stock for the purchaser and to deliver the same to him, first procuring the cancellation of the original certificate and the issuance of another one to the purchaser upon his paying the balance of the purchase price, such transaction amounts to a sale, and passes such a title to the purchaser as to authorize an action on his part to recover for the conversion of the stock.</p> <p>The surrender of a certificate of stock to one not entitled to it, who procures its cancellation and the issuance of a new certificate to himself, amounts to a conversion of the stock.</p> <p>In an action to recover for the conversion of shares of stock by a bailee instituted by one who had purchased a portion of the shares, on account of the bailee’s having surrendered all the shares to a third party assuming to be a purchaser of the whole of them, evidence tending to show that such third party paid the bailee in full for all the stock is immaterial.</p>