Miller v. Gittings

37 L.R.A. 654, 37 A. 372, 85 Md. 601, 1897 Md. LEXIS 79
Court of Appeals of Maryland·Decided April 8, 1897·Published·Cited by 19 cases

Opinion

Bryan, J.,

delivered the opinion of the Court.

Ernest Gittings filed a bill in equity against Emanuel H. Miller and Arthur E. Wilson.

It was alleged that Gittings was a citizen and resident of the State of Maryland and of the city of Baltimore; that Miller and Wilson were also citizens and residents of the same city and State ; that in the month of September, eighteen hundred and ninety-five, Gittings and Charles C. Allen, who is a resident and citizen of the State of New York, formed a partnership for the conduct of the stock brokerage business in the city of Baltimore under the name of Git-tings 8c Co., and that in said business Gittings was the active member who alone saw the customers, and conducted the operations with them; that in the summer and early fall of eighteen hundred and ninety-six Miller and Wilson had a large number of transactions with Gittings and Com[614] pany in relation to stocks; that said transactions were in the form of purchases and sales of stock made by Gittings & Co., for the account and risk of Miller and Wilson, but were in reality gambling transactions, and that there was no .intention or belief-by any of the parties to the transactions that the stocks should ever be actually delivered, but that the sole purpose was that there should be an accounting and settling as the stocks rose or fell in price; that all these . gambling transactions were entered into in the city of Baltimore ; and all settlements were also to be made in the city of Baltimore ; that for the purpose of indemnifying Gittings & Co. against loss in executing their orders Miller and Wilson placed in the hands of Gittings as margins ten bonds of the par value of a thousand dollars, and two hundred shares . of the preferred stock of the Southern Railway Company ; that these bonds and shares of stock were delivered to Git-tings with the express intention and expectation on the part of Miller and Wilson that he would hypothecate them for the purpose of obtaining money to enable him to aid Miller and Wilson in their gambling transactions ; that the amount of money which would have been necessary to purchase the stocks and. carry them until Miller and Wilson should elect .to order the sale of them to make their settlements with Gittings & Co. would have been over two hundred thousand dollars, and Miller and Wilson both knew that neither Gittings nor Gittings & Co. had any such sum; and Miller and Wilson had no such sum with which to make payment for the stocks, as it would be necessary for them to do, if it (had been intended that there should be an actual delivery of them; that Gittings hypothecated the ten bonds in the First National Bank of Baltimore for the sum of eight thousand dollars, for which sum the account of Miller and Wilson was duly credited by him on the books of Gittings & Co.; that this hypothecation was made with the full knowledge at the time it was made of Wilson and of William H. Miller, the father of Emanuel Miller; that at that time Emanuel Miller was absent from Baltimore, and that on his [615] return a day or two afterwards he was informed of it by Gittings; that the Southern Railway stock was also hypothecated in accordance-with the understanding and expectation of the parties when it was delivered to Gittings ; that it was hypothecated with Cuthbert & Co., stock brokers in the city of New York, through whom Gittings acted in carrying on the greater part of the speculative transactions for Miller and Wilson.

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Miller v. Gittings, 37 L.R.A. 654, 37 A. 372, 85 Md. 601, 1897 Md. LEXIS 79 (Md. 1897).

37 L.R.A. 654 (Miller v. Gittings) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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