McManus v. Laughlin

Citations

• 186 Pa. 498
• 40 A. 992
• 1898 Pa. LEXIS 1034

Syllabus

<p>Husband and wife — Conversion of wife's property by husband — Brokers.</p> <p>Where a husband who is in the habit of attending to his wife’s business, obtains from her securities with executed power to transfer, for the purpose of loaning them to a firm of brokers, under a promise not to use them in his own speculations, and he does so loan them, but subsequently hypothecates them with the brokers as security for his own speculations; the brokers having no knowledge of the promise made by the husband to the wife, and the wife, having raised no objections to the use which the husband was making of the securities for a considerable period of time after she learned the facts, she cannot, after the failure of the brokers, claim a preference over general creditors in the distribution of the firm’s assets.</p>