Solloway et al. v. Blumberger

Solloway et al. v. Blumberger

On the record and evidence, wrongful conversion was not established: broker practices and stock exchange customs permit substitution and transfer of street certificates; plaintiff accepted confirmations and monthly statements and benefitted from credited proceeds; ledger entries showing delivery of physical certificates did not prove deprivation of plaintiff's rights. Therefore plaintiff failed to prove conversion and the action must be dismissed.

Citation
[1933] SCR 163
Parties
Appellants (defendants): W. C. Solloway and Others; Respondent (plaintiff): Samuel Blumberger
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 February 1933
Procedural Posture
Civil Appeal — Wrongful Conversion of Securities / Appeal to Supreme Court of Canada From Court of Appeal for British Columbia; Final Judgment on Appeal
Outcome
Appeal allowed; action dismissed with costs throughout against the appellants (partners).
Legal Topics
Wrongful Conversion, Broker Client Relationship, Collateral Securities, Stock Exchange Customs, Onus of Proof, Street Certificates, Bucketting
Source Language
English
Securities Tort Evidence Commercial/agency Law Property Wrongful Conversion Broker Client Relationship Collateral Securities +4 more

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Parties

W. C. Solloway and Others

Appellants (defendants)

Samuel Blumberger

Respondent (plaintiff)

Procedural Posture

Civil Appeal — Wrongful Conversion of Securities / Appeal to Supreme Court of Canada From Court of Appeal for British Columbia; Final Judgment on Appeal

Legal Issues

  1. 1 Whether entries showing delivery of certificates to head office or other brokers establish wrongful conversion of client's securities
  2. 2 Whether broker conduct consistent with stock exchange customs justifies disposal/substitution of certificates without constituting conversion
  3. 3 Which party bears onus of proof of conversion in tort action

Ratio Decidendi

On the record and evidence, wrongful conversion was not established: broker practices and stock exchange customs permit substitution and transfer of street certificates; plaintiff accepted confirmations and monthly statements and benefitted from credited proceeds; ledger entries showing delivery of physical certificates did not prove deprivation of plaintiff's rights. Therefore plaintiff failed to prove conversion and the action must be dismissed.

Court Disposition

Appeal allowed; action dismissed with costs throughout against the appellants (partners).

Orders

  • Appeal allowed and judgment against the partners set aside; action dismissed with costs throughout.
  • If parties cannot agree on disposition of the deposit paid into court, the matter may be spoken to the court.