Little v. William F. Fearon & Co.

Citations

• 252 Pa. 430
• 97 A. 578
• 1916 Pa. LEXIS 633

Syllabus

<p>' Contracts — Bankers and brokers — Pledge of securities — Unauthorized pledge — Bights of pledgee — Indicia of title — Estoppel.</p> <p>1. One who delivers stock to another, accompanied by a power of attorney for the transfer thereof, clothes such other person with apparent ownership, and a bona fide purchaser or pledgee for value thereof, from such apparent owner, obtains a good title.</p> <p>2. If a party having a right stands by and sees another dealing with property in a manner inconsistent with that right, and makes no objection while the act is in progress, he cannot afterwards complain.</p> <p>3. In an action against a stock broker to recover for the conversion of securities a verdict was properly directed for the defendant where it appeared that plaintiff delivered certain of the securities to her husband, accompanied by properly executed blank powers of attorney, which securities he in turn deposited with defendant as security for certain stock transactions in which the husband was engaged; that subsequently plaintiff delivered other securities similarly endorsed to defendant, receiving therefor a receipt in the name of her husband, in which it was stated that the securities were to be held as collateral for the account of plaintiff’s husbands or any advances made to him thereafter, with power to rehypothecate the same, and plaintiff thereafter sent a check to defendant to strengthen the account, she could not subsequently complain of the action of defendant in applying said securities in payment of her husband’s account, especially where it appeared that she made no claim against defendant for several years after the alleged conversion, and that she had accepted a note from her husband in payment of the securities delivered to him or for his account,</p>