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THORNBURGH CONSTRUCTION CO. v. COLLEGE HEIGHTS DEVELOPMENT

Docket No. 18716.

111 Cal.App.2d 295 (1952)

244 P.2d 735

THORNBURGH CONSTRUCTION COMPANY (a Corporation), Respondent, v. COLLEGE HEIGHTS DEVELOPMENT (an Association) et al., Defendants; SAM RAIS, Appellant.

Court of Appeals of California, Second District, Division One.

May 26, 1952.

Attorney(s) appearing for the Case

John W. Preston and John W. Preston, Jr., for Appellant.

Aaron Levinson and Albert E. Marks for Respondent.

HANSON, J. pro tem.

This case instituted by a corporation against two of its three directors (Thornburg and Rais) is most unusual in that it was promoted at the instance, and by the vote of Thornburg and that of the third director who not only did not own any stock in the corporation but was Thornburg's personal bookkeeper. In short, Thornburg owned 70 per cent and Rais 30 per cent of the outstanding capital stock. The action as instituted was at law to recover...

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