Ward v. Graham-Jones Motor Co.
Ward v. Graham-Jones Motor Co.
Opinion of the Court
delivered the opinion of the court.
In this action defendant, The Graham-Jones Motor Company, demurred to the complaint and the demurrer was sustained. The plaintiff elected to stand upon his complaint, the action was dismissed as to the demurrant and the. plaintiff brings error.
It appears from the complaint, among much unnecessary matter, that defendant, Graham, and the plaintiff together owned all of the stock of The Colorado Motor Company, a corporation which' had a contract with The Reo Motor
It is further alleged that The Colorado- Motor Company had done a large business in this state in the sale of Reo mo-tor cars, and had made large profits therefrom; that, because of the fraudulent acts of the defendants, plaintiff,
It is objected, however, that the suit should have been in the name of The Colorado Motor Company for the benefit of the stockholders. That company, having been dissolved, could bring no suit, and if suit were brought by the directors as trustees the only person who would be entitled to the benefit of a recovery would be the plaintiff. That being so, the suit by him was proper. Dill v. Johnston, (Okla.) 179 Pac. 609.
It appearing thus that The Graham-Jones Motor Company’s officers formed it for the purpose of enabling Graham to cairry out his design to wrong his principal, The Colorado' Motor Company, for which he had assumed to act in the securing of a new contract, and that the plaintiff, a half owner of said Colorado' Company, being injured in his ownership by the acts of the defendant Graham, in which he was aided and abetted by the other defendants, his right of recovery upon the facts stated is unquestioned.
The demurrer should have been overruled. The judgment is therefore reversed.
Mr. Justice Denison and Mr. Justice Sheafor concur.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.