New York Court of Appeals

Edward M. Knox, Respondent v. Eden Musee Americain Company (Limited), Appellant

February 18, 1896148 N.Y. 441

Summary

The New York Court of Appeals reversed the lower court's judgment, holding that a business corporation is not liable for negligence for failing to cancel surrendered stock certificates and that stock certificates are not fully negotiable; the true owner may reclaim a lost or stolen certificate against any possessor, even a bona fide purchaser.