Barnes-King Development Co. v. Assets Collecting Co.
Barnes-King Development Co. v. Assets Collecting Co.
Opinion of the Court
.This is the second time this cause has come before us. Our former opinion will be found in 198 Eed. 82.
Upon the first trial the cause was disposed ox oil demurrer to the complaint. The trial judge, construed the complaint as averring that lleinze was an original subscriber to the stock. He held that such a subscriber, whose subscription had been induced by false representations made bv the corporation or its agents, could not recover hack what he had paid and still retain the stock. The plaintiff contended here that this was error, but upon that proposition we-concurred with the trial court. The judgment, however, was reversed because it was also contended that Heinze was not an.original subscriber, but had purchased from the company stock, which had once been issued by it and subsequently reacquired, so that the corporation had the. right to sell for what price it chose. The complaint is somewhat ambiguous; it contains, however, an averment that on a. certain date Heinze purchased 25,000 shares of the stock and paid therefor to the agents for defendant $125,000. We therefore held that:
*364 “This averment is entirely consistent with a sale by the company of stock once fully paid for - and afterwards donated it to sell on the open market. We cannot, upon such a complaint, find that Heinze was a subscriber for an original issue of stock, when there is no testimony to show it, and plaintiff’s counsel in his brief insists that such' is not the fact”
And, indeed, as to this “other and ■ different cause of action” we have already held that plaintiff cannot recover.
The judgment is reversed.
Reference
- Full Case Name
- BARNES-KING DEVELOPMENT CO. v. ASSETS COLLECTING CO.
- Status
- Published