Wheeler and Another v. . Newbould.

Summary

The New York Court of Appeals affirmed the lower court, holding that a pledge of commercial paper does not give the pledgee authority to sell the pledged securities without proper notice of time, place, and manner, and that a purported New York custom allowing private sales of such securities is inadmissible. The court required the pledgee to retain the securities and apply the proceeds as they become due to satisfy the debt, returning any surplus to the pledgor.