Ryman v. Gerlach

Citations

• 153 Pa. 197
• 25 A. 1031
• 1893 Pa. LEXIS 1073

Syllabus

<p>[Marked to be reported.]</p> <p>Transfer of stock — Notice—Estoppel.</p> <p>The rule that the owner of stock who, by a power of attorney, signed in blank, has conferred upon another all the indicia of ownership, is es-topped to assert his title to it as against a third person who has in good faith purchased it for value from the apparent owner, does not obtain where there are circumstances to put such person on inquiry. Wood’s Ap,, 92 Pa. 379, distinguished.</p> <p>Conversion of stock — Evidence of ownership.</p> <p>Bodmer, a stockbroker in Wilkes-Barre, and defendants, stockbrokers in Philadelphia, were correspondents. Defendants executed orders for Bodmer for the purchase and sale of stocks on the Philadelphia and Now York Stock Exchanges, dividing the commissions when the rules did not forbid. There was a private wire between the two offices, which was used in sending quotations and orders. Plaintiff employed Bodmer to purchase through defendants some stock and bonds which were paid for by plaintiff’s check to defendants, and the stock and bonds were sent to Wilkes-Barre. Subsequently plaintiff gave a similar order to Bodmer for other securities, who transmitted it to defendants, sending also the first securities, to which were attached blank transfers signed by plaintiff. These securities were to be held by defendants to secure part of the purchase money on the new order. Defendants credited them in a general account with Bodmer. Before the purchase money had been fully paid, defendants failed, and the securities were subsequently sold by them or their receiver. Held, in an action for a wrongful conversion of the securities, that there was sufficient evidence to submit to the jury to determine whether defendants had sufficient notice of the real ownership of the securities.</p> <p>Williams and Mitchell, JJ., dissent.</p>