Haas v. Jefferson National Bank
United States Court of Appeals for the Fifth Circuit
442 F.2d 394 (5th Cir. 1971)
Haas (plaintiff), a resident of Ohio, entered into agreements with Glueck, a resident of Ohio, to purchase Jefferson National Bank (the Bank) (defendant) stock. For the purposes of diversity jurisdiction, the Bank is a citizen of Florida. The shares were issued in Glueck’s name, and Haas alleged that the Bank knew of Haas’ interest in the stock. Glueck then pledged the stock, including Haas’ shares, as collateral for a loan at a second bank. Haas argued that the Bank’s transfer of the stock to the second bank was conversion. Haas sued the Bank in federal court based on diversity jurisdiction. The lower court directed Haas to join Glueck. The case was then dismissed for lack of jurisdiction.
Rule of Law
Holding and Reasoning (Aldisert, J.)