Appeal from judgment of Court of Common Pleas No. 5 of Philadelphia County, June T., 1965, No. 3769, in case of Milford J. Meyer v. Industrial Valley Bank and Trust Company.
Bernard J. Smolens, with him William T. Hangley, and Schnader, Harrison, Segal & Lewis, for appellant.
Louis J. Goffman, with him H. Robert Fiebach, and Wolf, Block, Schorr and Solis-Cohen, for appellee.
Bell, C. J., Musmanno, Jones, Cohen, Eagen, O'Brien and Roberts, JJ. Dissenting Opinion by Mr. Justice Roberts. Mr. Justice Musmanno joins in this dissenting opinion.
Dissenting Opinion by Mr. Justice Roberts:
Milford Meyer and Max Cohen, two attorneys whose offices were in the same building, had been friends for many years. Cohen, in need of funds, sought to borrow $13,000 from Industrial Valley Bank. When the bank refused to loan this amount without some security, Cohen approached Meyer and asked if Meyer would agree to pledge some of his own stock as
collateral for Cohen's loan. This Meyer readily agreed to do, for no compensation and as a pure gesture of friendship. On June 25, 1957, Meyer signed, in blank, a pledge agreement (the text of which is set out below),*fn1 pursuant to which he delivered to the bank 1500 shares of stock in the Sheraton Corporation. The bank then loaned Cohen $13,000, taking Cohen's demand note in exchange. Subsequent to this initial transaction, Meyer was twice permitted to substitute collateral. As a result, the collateral now involved in this litigation consists of $15,000 in Pennsylvania Turnpike bearer bonds.
By July 25, 1962 Cohen had reduced his debt to $8,000, and as a result, the bank returned to Meyer $5,000 of the $20,000 in bonds then held by Industrial. On February 21, 1963, without informing Meyer, Industrial served on Cohen formal notice that it would call for payment the remaining $8,000 on March 14, 1963. To this letter Cohen responded with the following ...