At Ryan's inquiry, the imposter stated that he had obtained the stock through an inheritance. Castrone testified that he had gone to Ryan's home on several previous occasions, both for social purposes and to conduct legal business. Cali then advised Ryan that in order to transfer the stock, Paine Webber would require a notarized bill of sale.Ĭastrone and the imposter arrived at Ryan's home (located in uptown New Orleans) the following evening after Castrone closed the car dealership. Charles Bailey, operations manager of the office, checked with NEGEA and determined that the stock had not been reported as lost, stolen or missing. Ryan called Morris Cali, a broker at Paine Webber's New Orleans office, to determine what steps were necessary for Castrone to purchase the stock by private sale and then to sell it for cash without waiting the usual period. Castrone contacted his friend and attorney, William Ryan, and requested advice on the purchase of the stock. The imposter claimed that he did not want to sell the stock through a broker because he wanted to avoid the usual delays in receiving cash for the stock. During their negotiations, the imposter stated that he wanted to buy the car with cash and offered to sell Castrone various stocks, including 1,500 shares of NEGEA, at a price below market value. (Several months later, Castrone was introduced to the plaintiff and stated that he was not the same man who came to the dealership). Apparently, the NEGEA stock certificate had been stolen from Quealy's suitcase.ĭonald Castrone, sales manager of a West Bank new car dealership, testified that in December of 1977 a man claiming to be William Quealy came to the dealership and spoke to him about purchasing a car. He was informed that the shares had been surrendered. In February of 1978, Quealy noticed that he had not received his quarterly dividend and immediately contacted NEGEA. He assumed the stock certificates remained in the suitcase after he moved. In 1977, a fire at the hotel forced him to move to another nearby hotel. Besides the dividends he received from those securities, his only income was a small Army disability pension. He kept the stock certificates in an unlocked leather suitcase in the room he lived in at a French Quarter hotel. Quealy inherited 1,500 shares of NEGEA common stock from his mother, as well as a small amount of shares in three other corporations. On Paine Webber's application, we granted certiorari to determine the correctness of that decision. It further remanded the case to the trial court to fix the amount of attorney fees and costs. *759 The court of appeal, finding that Paine Webber and NEGEA were guilty of conversion, affirmed the judgment of the trial court in all respects except to exclude interest on the value of the lost stock and to award attorney fees and court costs to NEGEA on its third-party demand against Paine Webber. Paine Webber's third-party demand against Ryan was dismissed. Judgment was further rendered in favor of NEGEA on its third-party demand against Paine Webber in an amount equal to that rendered in favor of Quealy. The judge further awarded legal interest from the date of judicial demand until paid on the award for the lost shares and general damages and from the date due on the award for lost dividends. The trial judge rendered judgment in favor of Quealy and against Paine Webber and NEGEA, in solido, in the amount of $32,437.50 for the loss of the shares based on their value on the day before trial, together with $15,840 for lost dividends, and $15,000 in general damages, or a total of $63,227.50. NEGEA filed a third-party demand against Paine Webber seeking indemnification for any damages for which it might be cast. Ryan, a notary who prepared and notarized a bill of sale which purportedly transferred ownership of the shares from the imposter to Castrone. Paine Webber filed a third-party demand against William F. Castrone, who bought the shares from an imposter and presented them for re-sale to Paine Webber. (Paine Webber) and New England Gas and Electric Association (NEGEA) for the unauthorized sale of 1,500 shares of NEGEA stock owned by Quealy. Quealy against Paine, Webber, Jackson & Curtis, Inc. John Baus, Jones, Walker, Waechter, Poitevent, Carrere & Denegre, Perry Staub, Monroe & Lemann, Matthew Greenbaum, New Orleans for respondents. *758 Phillip Wittmann, Douglas Dodd, Jo Strickler, Stone, Pigman, Walther, Wittmann & Hutchinson, New Orleans, for defendant-applicant. Castrone, New England Gas and Electric Association and Vance, Sanders Investors Fund, Inc. PAINE, WEBBER, JACKSON & CURTIS, INC., Donald S.
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