Reynolds v. New York Building Loan Banking Co.

Majority

p. 80

REYNOLDS v. NEW YORK BUILDING LOAN BANKING CO.

(Supreme Court, General Term, Second Department.

July 26, 1895.)

Headnote

Building and Loan Associations—Withdrawal on Stock—Notice—Waiver on Detects.

Where notice of withdrawal of stock in a building and loan association is given to the secretary, the proper person to receive it, and he makes no

p. 81

objection thereto, and does not inform the person giving the notice that the transfer to him of the stock must be entered on the corporation’s books, such objection cannot afterwards be made.

Appeal from circuit court, 'Westchester county.

Action by James L. Reynolds against the New York Building Loan Banking Company, a building and loan association, to recover a sum of money alleged to be due to plaintiff on a withdrawal of shares of the stock of defendant. From a judgment entered on a verdict in favor of plaintiff for $1,127.10 damages, and $142.07 costs, and from an order denying a motion to set aside the verdict, and for a new trial, made on the judge’s minutes, defendant appeals. Affirmed.

Argued before DYKMAN and PRATT, JJ.

Booraem, Hamilton, Beckett & Ransom, for appellant.

Isaac N. Mills, for respondent.

There is no dispute that the secretary was the proper person to receive notices of withdrawal of funds. The power to receive notices implied the power to reject them, if irregular, and the duty to inform the applicant of the action taken. Any other rule would give a corporation a license to commit fraud. Had the secretary, when the notice was given, announced to plaintiff that the transfer of shares to him must be entered on the corporation books, that would have been promptly done. That obligation was for the benefit of the company. Once waived, it cannot now be insisted upon.

Judgment affirmed, with costs.