Savings Union Bank & Trust Co. v. Crowley

LAWLOR, J.

Plaintiff appeals from the judgment for defendant, and from an order denying a new trial.

Timothy Jay Crowley died January, 1913. At the time of his death he was the owner of 106 shares of the capital stock of the Pleasant Valley Farming Company, represented by certificates numbered 3 and 8. In March and May, 1913, dividends were declared on the Crowley stook amounting to $11,978. In June, 1913, plaintiff commenced this action against the Pleasant Valley Farming Company for the dividends, on behalf of the estate. By stipulation, the Farming Company was released from all liability, upon its deposit of the money in a bank selected by the trial judge, and the- de

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fondant, Katherine S. Crowley, widow of the deceased, was substituted and permitted to file her answer setting out her claim to 'the dividends. Her answer alleged, and the court found it to be the fact, that the deceased was at Ms death indebted to the defendant in the sum of seven thousand five hundred dollars and interest, evidenced by four promissory notes properly executed and delivered to the defendant, that no part of the principal or interest of the notes had ever been paid, and that these notes were secured by the two certificates of stock above mentioned. It was accordingly held that these certificates in the possession of the defendant constituted a valid pledge of the stock in question and entitled her to collect her debt out of the dividends deposited by the Pheasant Valley Farming Company, the surplus to go to the plaintiff.

Appellant contends that the evidence is insufficient to justify the findings that the deceased ever delivered the certificates of stock to the respondent in pledge or that such certificates were ever pledged to secure the payment of the notes in question, or that respondent retained possession of the certificates in pledge or otherwise, or that the notes themselves had not been fully paid long prior to the declaration of the dividends in suit. Practically the only evidence touching these particulars is the testimony of the respondent,' Mrs. Crowley, and the notes and certificates themselves. Mrs. Crowley stated that all four notes, though bearing different dates, were delivered to her by her husband at the same time, in 1907, as evidence of his indebtedness to her, and that together with the notes he delivered to her the two certificates of stock, which he told her would secure the notes. Upon three of the notes was the statement, in the handwriting of Crowley, that they were secured by stock of the Pleasant Valley Farming Company, or the Pleasant Valley Stock Farm. The body and signature of the notes were shown to be in Crowley’s handwriting. The certificates bore the blank indorsement of the deceased. Upon the face of the certificates was the provision that they were transferable upon the books of the company by indorsement and delivery. Mrs. Crowley also testified that when she received the notes and certificates she wrapped all of them into a single package and placed them in a safe deposit box rented by her husband, to wMch she had access, and which she used for her personal belongings. The package was found to be intact upon the