Krouse v. Woodward

Citations

• 110 Cal. 638
• 42 P. 1084
• 1895 Cal. LEXIS 1112

Syllabus

<p>Corporations—Pledge of Stock—Specific Performance.—The pledgor of shares of stock in a corporation is entitled to a specific performance of the contract for return of the stock, upon payment or tender of the amount of the indebtedness to secure which it was pledged, if it appears that the stock has no market or ascertainable value, and that the pledgor purchased it for investment with a view to anticipated increase in value, and that he cannot purchase other shares in the corporation for the reason that no holder will sell them.</p> <p>Id.—Transfer of Certificate by Pledgee—Bona Pide Purchaser— Liability of Pledgee.—Where there is no difference in the value of the shares, and the certificate of stock pledged has been conveyed by the pledgee to a bona fide purchaser for value, the court may compel the pledgee to convey stock owned by him in lieu of the certificate received from the pledgor.</p> <p>Id.—Pledge for Purchase Money Borrowed.—The right of the pledgor to redeem the pledge, and insist upon the return of the shares of stock pledged, is not affected by the fact that he borrowed from the pledgee the money with which he purchased the stock.</p>