Newman Machine Co. v. Newman
North Carolina Supreme Court
166 S.E.2d 63 (1969)
George Newman, Jr. (defendant) sold his stock in Newman Machine Co. (the Company) (plaintiff) back to the Company in 1959. In 1965, after concluding the price he received was grossly inadequate, Newman began threatening to sue over the sale and continued making these threats for nearly two years, jeopardizing the Company's stability. The Company sued Newman in a quiet-title action to resolve the dispute once and for all, and Newman moved to dismiss, arguing quiet title does not apply to personal property like stock. The trial court denied the motion, the Court of Appeals reversed, and the Company appealed to the North Carolina Supreme Court.
Whether a plaintiff may maintain a quiet-title action to resolve a cloud on title to personal property, such as corporate stock, rather than only real property.