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Restitution - Effect Of Illegality - Right Of Person Not A Party To The Illegal Transaction To Invoke Defense Of Illegality, Alfred I. Rothman

Michigan Law Review

In an action for conversion of stock, plaintiff alleged that her intestate was the actual owner of the capital stock of a brewing corporation. Intestate had in fact furnished the consideration for the stock, but it was issued in the name of one Vogel as his dummy and agent. After the death of intestate, the defendant, with knowledge of plaintiff's interest, acquired the stock from Vogel by means of a pretended purchase and converted it to his own use. As a defense to the conversion action, defendant interposed a plea of illegality, alleging that the capital stock was issued to …