Opinion ID: 2053598
Heading Depth: 1
Heading Rank: 2

Heading: Keystone and Welford Stock

Text: Keystone was incorporated in Pennsylvania on February 25, 1932. On September 24, 1934, the wife's mother, Ida Fischman, who was the owner of 2899 shares of Keystone stock, transferred those shares to the wife. The husband paid no consideration to Ida Fischman for this transfer and he had no legal or equitable right, title or interest therein and his contention that Ida Fischman was his straw is unsupported by the record. Because of gifts made by the wife to the sons and by reason of a later stock dividend, the wife's holdings stood at 1138 8/9 shares as of July 1, 1951. In 1956, the husband requested that the wife transfer this stock to him so he could obtain a bank credit, promising its return after its purpose was served. Accordingly, on November 21, 1956, the wife transferred her 1138 8/9 shares of Keystone to the husband. These shares were transferred back to the wife on April 9, 1958. The wife was sole owner also of 250 shares of Welford stock. The husband now claims that he provided the purchase money for this stock and that the wife is merely his straw. However, the evidence supports the chancellor's finding that the husband did not pay any money when the stock was acquired by the wife and, furthermore, since the stock was never the husband's, there can be no presumption that he made a gift of it to his wife or that there existed a resulting trust in his favor. In September 1961, the husband requested that the wife transfer the 1138 8/9 shares of Keystone and 250 shares of Welford to the parties as tenants by the entireties so that he could obtain bank credit. To induce this transfer, the husband promised that he would transfer his own stock in Keystone and Welford to the parties as tenants by the entireties and that he would transfer to the wife stock which he owned in Eric Corporation of America. The husband also promised that the transfer would be temporary and he would retransfer the stock as soon as he obtained the credit he sought. Relying on these representations, the wife made the requested transfers on September 18, 1961. At the time of the transfers, the evidence fully supports a finding that the wife was the sole and exclusive owner of these stocks and did not hold them in any trust or as a straw for the husband. The husband failed to keep his promises and never returned these shares of stock to the wife despite her repeated demands. The chancellor decreed that the Keystone and Welford stock be returned to the wife and the evidence fully supports this portion of the decree.