Majority
p. 441JOHN R. MEAD, Respondent, v. M. G. ELMORE, Appellant. No. 1572; July 11, 1868.
Headnote
Corporate Stock — Transfers—Entry in Books.' — Under the statute controlling transfers of stock in incorporated companies (Stats. 1853, p. 87, sec. 9), transfers not entered on the books of the company are valid against all the world except subsequent purchasers of the stock in good faith and without notice.APPEAL from Fifteenth Judicial District, San Francisco County.
Jarboe & Harrison for respondent; Clark Churchill for appellant.
Upon the merits this case is not distinguishable from Weston v. Bear River and Auburn Water and
p. 442
Mining Company, 5 Cal. 186 , 63 Am. Dec. 117 ; the same ease on a second appeal, 6 Cal. 425 ; and. Naglee v. Pacific Wharf Co., 20 Cal. 529 . In those cases the statute in relation to the transfer of stock in- incorporated companies (Stats. 1853, p. 87, sec. 9) has received a construction from which, upon the principle of stare decisis, we cannot now depart.
It was held in those cases that transfers of stock, which have not been entered on the books of the company, as provided in the statute, are nevertheless valid as against all the world, except subsequent purchasers in good faith without notice.
The ease shows that the relator purchased with notice that the stock in question had been previously hypothecated, and afterward sold, by the defendant in the execution, and that at the time of the levy he had no property whatever in the stock.
Upon the authority of the eases to which we have referred, the order of the court below must be reversed.
So ordered.
We concur: Crockett, J.; Sprague, J.
Cases cited
- Weston v. Bear River 5 Cal. 186 p. 442
- Weston v. Bear River & Auburn Water & Mining Co. 6 Cal. 425 p. 442
- Naglee v. Pacific Wharf Co. 20 Cal. 529 p. 442