Snowden v. Marine Nat. Bank of Pittsburgh

256 F. 350, 167 C.C.A. 520, 1919 U.S. App. LEXIS 1369
CourtCourt of Appeals for the Third Circuit
DecidedFebruary 26, 1919
DocketNo. 2380
StatusPublished

This text of 256 F. 350 (Snowden v. Marine Nat. Bank of Pittsburgh) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Snowden v. Marine Nat. Bank of Pittsburgh, 256 F. 350, 167 C.C.A. 520, 1919 U.S. App. LEXIS 1369 (3d Cir. 1919).

Opinion

BUFFINGTON, Circuit Judge.

In the court below, James H. Snowden, a citizen of Connecticut, brought suit against the Marine National Bank of Pittsburgh. On the trial the court, at the conclusion of the plaintiff’s proofs, granted defendant’s motion for a compulsory nonsuit. On its subsequent refusal to take off such nonsuit, plaintiff sued out this writ, and the question before us is whether the proofs were such as justified submission of the case to the jury.

The action was trespass, and the statement charged a tort on the bank’s part. The tort consisted in the following facts, which are alleged in the statement:

That John L. Moore was engaged in business in Pittsburgh, Pa., as “a mere promoter engaged in exploiting enterprises of doubtful value, notably a company known as the Amber Oil Company, and that such transactions as the sale of stock as said John L. Moore, individually, or as John L. Moore & Co., may have been engaged in, were merely incidental to his said business as promoter.” That the business name of John L. Moore was John L. Moore & Co., and “was assumed by said John L. Moore to mislead the public, in the belief that another person or persons were engaged in said business beside the said John L. Moore, and to thus unwarrantedly gain business faith and credit, and in the course of such business said John L. Moore falsely and fraudulently held himself out as a stockbroker, and so advertised both in the public press and by means of .so-called “market letters,” which he sent through the mails, in large quantities, to many persons, in different parts of the country.” That certain correspondence and telegrams passed between Snowden and Moore in reference to the sale of 200 shares of stock of the Union Mutual Gas Company, which Snowden had placed in Moore’s hands. That “these facts w'ere well known to the Marine National Bank, its officers and agents, in which and through which said John L. Moore, as John L. Moore & Co., transacted his banking business, as was also the fact that the wording used in the so-called [351]*351‘confirmation of purchase’ blanks used by John L. Moore & Co. was used with intent to evade legal responsibility for wrongful acts.”

The statement further averred:

That the bank, with knowledge or notice that the stock in question was Snowden’s, and not Moore’s, had it transferred to the name of Moore, and new certificates issued in Moore’s name, and that such new certificates “were held by said bank until the same were sold and disposed of by said bank in cooperation with John L. Moore, trading as John L. Moore & Co.. October 19, 20, and 21, 1915, and the money received therefor was paid to the Marine National Bank, representing John E. Moore, trading as John L. Moore & Co., as aforesaid.”
The bank “well knew that John L. Moore, doing business in the name and style of John E. Moore & Co., was falsely and habitually holding himself out as a legitimate stockbroker.”

And it then charged:

“Specifically, plaintiff is informed, believes, and expects to be able to prove, and therefore avers, that the Marine National Bank, with full knowledge of the fact that the stock in suit was the property of James H. Snowden, and was in the possession of John E. Moore, or John L. Moore & Co., as broker or agent only, received same from John L. Moore and John L. Moore & Co. as the agent thereof, for the purpose of selling and disposing of samo through the Stock Exchange of the City of Pittsburgh, for the account of James H. Snowden, the plaintiff herein, and to that end acted in collusion and co-operation with the said John E. Moore, trading as John E. Moore & Co., to the great loss and damage of the plaintiff herein.”
That “at the time of the transaction heroin complained of * * * John L. Moore as an individual, or as John E. Moore & Co., was indebted to the Marine National Bank; * * * that for some time prior thereto the officers, agents, and employés of said bank were, as above stated, well aware of the material facts and circumstances herein set forth,” and notwithstanding such was the fact, “unlawfully appropriated to itself the money received from the sale of the 50 shares of stock,” for which Moore had given his check to plaintiff, which was noti paid, and also “the proceeds of the remaining 50 shares of the stock of James H. Snowden, for which no check was ever sent, in payment of the debt owing to said bank by the said John E. Moore, trading as John L. Moore & Co., and that in truth and in fact the defendant herein, the Marine National Bank, caused the last 100 shares, represented by certificates Nos. 13,990 and 13-,991, to be sold October 21, 1915, and wrongfully appropriated the entire proceeds thereof to its own use.”

It was further averred:

“That by reason of its wrongful and unlawful conversion of the proceeds or one lot of 50 shares of said stock and its unlawful sale, appropriation, and conversion of the other 50 shares of stock in co-operation and collusion with John E. Moore,” the bank was indebted to the plaintiff in the sum claimed, and that “since his discovery of the facts and circumstances above set forth he has made demand, through his attorneys, upon the defendant for reimbursement in the premises, which demand has been by said defendant refused.”

Based on this statement, the plaintiff brought this action of trespass. The Pennsylvania Procedure Act (P. T. 1887, p. 271), which is followed by the court below, provides for two forms of action, viz. assumpsit and trespass. Assumpsit is the proper form of action where there is [352]*352a contract, express or implied; trespass, the form to redress a tort or wrong. In the present case, the action is trespass, and the cause of action charged in the statement is the tort pr illegal act of the bank. Such being the case, the test question is: Did the plaintiff’s proofs show the bank guilty of a tort or tortious wrong done to John H. Snowden, the plaintiff ?

The evidence shows that Snowden, on September 23, 1915, telegraphed John D. Moore & Co.', stating his wish to sell 200 shares of Union Natural Gas stock at $132 per share, and inquiring whether they “can dispose of this for me at once.” Having received, on September 27th, a favorable reply, Snowden wired Moore & Co. to sell the stock at once, at $132, and sent by registered letter, certificates which were in his name, and signed his name to the transfer in blank printed on the back of the certificates.

Acknowleding receipt of the certificates, Moore & Co., on September 28th, wrote Snowden:

“We are taking the matter up with some of our clients whom we know to be interested in this company, and we believe we can get you a little better price in this way than in the open market.”

While there was an interchange of messages meanwhile, the next important step was on October 11th, when Moore & Co., wrote Snowden, informing him they had themselves bought 50 shares of his stock at private sale at $133, and returned all the certificates, with the request that Snowden have his signature to the transfer guaranteed by his bank. This was done by Snowden, who returned the certificates. On October 14th, Moore & Co. remitted their check to Snowden “to cover the 50 shares of Union Natural Gas stock purchased from you on the 11th inst.,” and further wrote:

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Bluebook (online)
256 F. 350, 167 C.C.A. 520, 1919 U.S. App. LEXIS 1369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snowden-v-marine-nat-bank-of-pittsburgh-ca3-1919.