This section contains the nature of the case and procedural background.

In 1973, Trahan (P) pledged 70,000 shares of TIPCO stock to Bank (D) to secure two personal loans. In 1977, P repaid the loans and demanded the return of the stock. D refused contending that the stock had been pledged to secure loans made to Resource Exploration, Inc. which D considered to be one and the same as P. The latter obligation was evidenced by an uninitiated interlineation on the pledge agreement. When the corporation defaulted on its loan, D sold 15,000 shares of the stock. P sued under diversity. The trial judge found that the stock had not been pledged as security for the corporation’s loans and had been wrongfully converted by D. The judge ordered D to tender the equal number of shares of TIPCO to P. On March 13, 1978, the date of the conversion; the stock was worth $10 per share. On the date the judgment was entered, the stock was worth $29.50 per share. The highest value reached between the two dates was $64.25 per share. Both parties appealed.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.