Plohn v. Plohn

206 Misc. 969, 135 N.Y.S.2d 135, 1954 N.Y. Misc. LEXIS 2897
CourtNew York Supreme Court
DecidedOctober 21, 1954
StatusPublished
Cited by10 cases

This text of 206 Misc. 969 (Plohn v. Plohn) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Plohn v. Plohn, 206 Misc. 969, 135 N.Y.S.2d 135, 1954 N.Y. Misc. LEXIS 2897 (N.Y. Super. Ct. 1954).

Opinion

Walter, J.

The parties hereto were married in May, 1940. Plaintiff wife left the marital home, a two-and-a-half-room apartment at 215 East 73rd Street, about 1951, with what, I must assume, was ample justification, because she later obtained in this court, in June, 1954, a judgment of separation with alimony of $1,400 per month.

In this action she asserts that the defendant husband wrongfully converted to his own use various items of property which she asserts were hers (i. e. the household furniture and furnishings left in the marital home, certain articles of jewelry said to have been given to her by defendant, 7,500 shares of stock of General Acceptance Corporation, formerly named General Phoenix Corporation, a miscellaneous group of less than 100-share lots of shares of stock of eleven different corporations enumerated in Paragraph 6 of her second amended complaint, and 300 shares of stock of General Finance Corporation allegedly given to her by her sister, Mary Tobin), and she here seeks to recover the value thereof.

At the commencement of the trial I allowed plaintiff to amend her complaint so as to pray for a return of the property allegedly converted or for the value thereof but, while, as a matter of pleading, that gives the action the appearance of an action of replevin in which plaintiff might recover either the property or the value thereof, the rule of substantive law is that having alleged and elected to sue for conversion, plaintiff, in effect, forced the property upon defendant and made it his, and must now be content with a money judgment for the value thereof. (Allen v. Fox, 51 N. Y. 562, 565; Pierpoint v. Farnum, 234 App. Div. 205, 207, revd. on other grounds 260 N. Y. 26; and see, also, Terry v. Munger, 121 N. Y. 161.)

Defendant was a stockbroker, and for most of the period during which he and plaintiff lived together he was a partner in the Stock Exchange firm of Newborg & Company. He told plaintiff he wanted to open an account for her to trade in stocks and make money for her. Accounts were then opened in plaintiff’s name with Newborg & Company and with Continental Bank & Trust Company, but plaintiff gave defendant power of attorney which vested in him complete power and authority to handle and manage those accounts, and defendant did, in fact, handle and manage them. Stocks were bought and sold, money was borrowed, the stocks were pledged as security for the repayment of the money borrowed, defendant paid off some of the loans by the use of his own money and, in some instances, when some of the stocks purchased became free of pledge, the certificates representing them were taken out of the accounts [973]*973and delivered to plaintiff, but no certificate representing any of the shares of stock involved in this action ever was delivered to plaintiff, and there is no evidence that any of plaintiff’s own. money ever was used in the acquisition of any of the shares of stock here in question.

Defendant’s statement back in December, 1941, that he wanted to open an account for plaintiff, trade in stocks and make money for plaintiff was, at most, a declaration of a conditional intention to give something to plaintiff in the future, and was not, of itself, a gift of anything or even an unqualified promise to make a gift. The opening of the accounts in her name did not, of itself, make her the owner of the stocks which were purchased and placed in the accounts, or give her possession or control of those stocks, or make her the owner of the dividends paid thereon. To the extent that stocks acquired by defendant’s operation of the accounts ultimately were freed from the obligations of the accounts and taken out and delivered to plaintiff, plaintiff concededly became the owner of those stocks but, I repeat, those stocks are not the stocks here in question.

Even if some of plaintiff’s own money had gone into the account (and for all purposes of this decision, I assume that some of plaintiff’s money was used in the acquisition of the stocks here in question) that would not make her the owner of such stocks. It would, at most, give rise to some right to require an accounting as to the money of plaintiff which was so used.

On July 17, 1951, the miscellaneous group of odd lot shares enumerated in Paragraph 6 of the second amended complaint were held by Newborg & Company, and on that day the certificates representing those shares were delivered by Newborg & Company to defendant. If defendant had then delivered those certificates to plaintiff with the intention of making a gift thereof to her, she then would have become the owner of the shares, but defendant never delivered them to plaintiff, and plaintiff never had them in her possession or under her control and she, hence, never became the owner of them.

On August 29, 1951, the 7,500 shares of General Acceptance Corporation were held by Newborg & Company against a debit balance of $25,173.80 and on that day defendant paid Newborg & Company that $25,173.80, and took into his possession the certificates representing the 7,500 shares. Those certificates, it is true, were in plaintiff’s name, but she never had had them in her possession or under her control, and there is a complete lack of any evidence that she ever had, in fact, acquired any ownership of them by gift, purchase or otherwise.

[974]*974When defendant got the certificates for those 7,500 shares from Newborg & Company on August 29, 1951, he did not deliver them to plaintiff but, on the contrary, surrendered them to the transfer agent of the issuing corporation and obtained the issuance of new certificates in his own name. To obtain the issuance of the new certificates to him, defendant signed plaintiff’s name to a stock transfer power without disclosing that it was not plaintiff but himself who signed it, but whether or not that was strictly legal or proper need not be considered, for whether legal and proper or not is, at most, a question between defendant and the transfer agent and does not affect any right of plaintiff in question in this action.

I thus conclude that there is no evidence whatsoever that plaintiff ever owned either the miscellaneous collection of odd lot shares, or the 7,500 shares of General Acceptance Corporation, and the motion to dismiss plaintiff’s first cause of action, accordingly, must be granted.

The 300 shares of General Finance Corporation were in a brokerage account of plaintiff’s sister, Mary Tobin, in January, 1947, when Miss Tobin signed a letter, dated January 4, 1947, addressed to plaintiff stating, “ I am giving you 300 shares of General Finance Corporation as a gift.” That letter, however, obviously, was not delivered to plaintiff, or to anyone for her, because plaintiff admits that she knew nothing about this alleged gift from her sister to her until 1951. I think, therefore, that the alleged and attempted gift to plaintiff of those 300 shares of General Finance Corporation must fail because of the absence of any delivery to her of either the stock itself or any instrument of gift.

As plaintiff thus has failed to show that she ever acquired ownership of this stock, it is unnecessary to decide whether or not plaintiff then made a valid gift of the stock to defendant by means of a letter to him of January 8, 1947.

The motion to dismiss plaintiff’s third cause of action, accordingly, must be granted.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Sloan v. Starbare II Partners, L.P.
256 A.D.2d 104 (Appellate Division of the Supreme Court of New York, 1998)
Darwish v. Darwish
300 N.W.2d 399 (Michigan Court of Appeals, 1980)
Joyce v. Joyce
276 A.2d 692 (Court of Special Appeals of Maryland, 1970)
Manheim v. Manheim
60 Misc. 2d 88 (New York Supreme Court, 1969)
Coppola v. Coppola
18 A.D.2d 1004 (Appellate Division of the Supreme Court of New York, 1963)
Tausik v. Tausik
38 Misc. 2d 11 (New York Supreme Court, 1962)
Rosenberg v. Rosenberg
28 Misc. 2d 922 (New York Supreme Court, 1961)
In re the Estate of Weiss
33 Misc. 2d 981 (New York Surrogate's Court, 1960)
Plohn v. Plohn
1 A.D.2d 824 (Appellate Division of the Supreme Court of New York, 1956)

Cite This Page — Counsel Stack

Bluebook (online)
206 Misc. 969, 135 N.Y.S.2d 135, 1954 N.Y. Misc. LEXIS 2897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plohn-v-plohn-nysupct-1954.