23 A.D.2d 831 | N.Y. App. Div. | 1965
Judgment and amended judgment unanimously reversed and vacated, on the law, with $50 costs to plaintiff-appellant, plaintiff’s motion for a directed verdict in the sum of $5,036.53, with interest, granted, and judgment directed therefor in favor of plaintiff, with taxable costs and disbursements. The plaintiff, pursuant to the agreement of October 13, 1960, held 100 shares of stock in the Gillette Company, standing in defendant’s name, as collateral security for the indebtedness, for which defendant was liable as surety. As pledgee of the stock, the plaintiff was entitled to receive and hold therewith as security for the indebtedness, the 200 shares of said Gillette Company stock which was issued pursuant to a 3 for 1 stock split declared in November, 1961. (Commercial Nat. Bank v. National Sur. Co., 259 N. Y. 181; Brightson v. Glaflin, 225 N. Y. 469.) The value of the said additional 200 shares of Gillette Company stock resulting from the stock split was such that if the defendant had delivered the same to the plaintiff, as he was required to do, the indebtedness would have been adequately secured. The defendant failed as a matter of law to establish his alleged defenses. The defense of fraud was premised upon the alleged false representation that if the defendant