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National Safe Deposit, Savings & Trust Co. v. Hibbs, 229 U.S. 391 (1913)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
National Safe Deposit, Savings & Trust Co. v. Hibbs, 229 U.S. 391 (1913)
National Safe Deposit, Savings & Trust Company v. Hibbs No. 79 Argued April 14, 15, 1913 Decided June 10, 1913 229 U.S. 391
ERROR TO THE COURT OF APPEAL
OF THE DISTRICT OF COLUMBIA
Syllabus
A bank’s trusted agent, in gross breach of his duty, took certain stock certificates belonging to the bank, endorsed and authenticated with evidence of title, to a broker who, in ordinary course of business and in good faith, sold them to third parties for full value and paid over the proceeds to such agent. Held, in a suit by the bank against the broker that:
Where one of two innocent persons must suffer by the acts of a third, he who has enabled such third person to occasion the loss must sustain it.
Stock certificates are a peculiar kind of property; although, strictly speaking, not negotiable paper, they are frequently the basis of commercial transaction and bought and sold in open market as negotiable securities are. Bank v. Lanier, 11 Wall. 369.
The fact that principles affecting the matters involved are well known to businessmen and are constantly acted upon by them should be given due weight in determining the rights of parties in a transaction relating to the sale of stock certificates. Russell v. Am. Bell Telephone Co., 180 Mass. 467, approved.
Under the principles of equitable estoppel, the bank is estopped to make any claim against the broker.
32 App.D.C. 459 affirmed.
The facts, which involve the question of liability of a broker for sale of stolen stock certificates, are stated in the opinion.
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Chicago: U.S. Supreme Court, "Syllabus," National Safe Deposit, Savings & Trust Co. v. Hibbs, 229 U.S. 391 (1913) in 229 U.S. 391 229 U.S. 392. Original Sources, accessed November 24, 2024, http://originalsources.com/Document.aspx?DocID=8AU4PSY9EFMYLXU.
MLA: U.S. Supreme Court. "Syllabus." National Safe Deposit, Savings & Trust Co. v. Hibbs, 229 U.S. 391 (1913), in 229 U.S. 391, page 229 U.S. 392. Original Sources. 24 Nov. 2024. http://originalsources.com/Document.aspx?DocID=8AU4PSY9EFMYLXU.
Harvard: U.S. Supreme Court, 'Syllabus' in National Safe Deposit, Savings & Trust Co. v. Hibbs, 229 U.S. 391 (1913). cited in 1913, 229 U.S. 391, pp.229 U.S. 392. Original Sources, retrieved 24 November 2024, from http://originalsources.com/Document.aspx?DocID=8AU4PSY9EFMYLXU.
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