Riverside Portland Cement Co. v. Anchor Laundry Co.

July 25, 1919, the appellant executed the contract set out in full in Riverside Portland Cement Co. v. Anchor Laundry Co., 75 Cal. App. 286, 288 [ 242 Pac. 879 ], by the terms of which he assigned 200 shares of the capital stock of the Anchor Laundry Company (then held by the Heilman Commercial Trust & Savings Bank in pledge to secure the payment of his two promissory notes in the total sum of $18,400) as security for the payment of a series of notes of $5,000 each executed by him and payable to the plaintiff. The first of these notes became due and payable May 6, 1918; the second June 5, 1918, and the others at later dates. The plaintiff paid the Heilman Bank the amount due on the appellant’s aforesaid notes and received delivery of the 200 shares of stock. May 5,1922, the plaintiff brought an action to recover from appellant and others the amount of all the promissory notes, but did not seek in that action to foreclose its lien on the capital stock. June 29, 1922, the plaintiff caused the 200 shares of stock to be duly sold to satisfy the whole of the appellant’s indebtedness to it, including the amount paid by it to the Heilman Bank on account of the appellant’s aforesaid two…