Barton v. Butler County Oil Co.

Citations

• 112 Kan. 436
• 211 P. 608
• 1922 Kan. LEXIS 465

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Compromise and Settlement op Litigation — Action to Set Aside — Bad Faith, Negligence by One of, the Parties Insufficient. In an action to set aside a compromise and settlement of pending litigation, bad faith, negligence and indifference on the side of one of the parties is not sufficient ground to vitiate the contract hvhen the other party to it is without fault and is insisting that it be maintained as executed.</p> <p>2. Same — Action to Set Aside Settlement — Inadequacy oj Consideration Insufficient. Inadequacy of consideration is not ordinarily a sufficient ground to set aside a compromise and settlement of a claim to property when that claim is subject to litigation and where the chances of success in such litigation are hazardous and uncertain.</p> <p>3. Same — The record examined, and no evidence, disclosed therein to support a finding that the sum of $35,000 paid in compromise and settlement of plaintiffs’ claim to recover an oil and gas lease was an inadequate consideration.</p> <p>4. Same — Questions of Law and Facts Considered. Certain questions of fact and of law which inhered in the subject matter of the lawsuit, which was compromised, settled and dismissed, noted, and held not to be of controlling significance herein and not decided.</p> <p>5. Same — Management of Corporation — Vested in Its Board of Directors. The management of a corporation is vested in its board of directors, and such board has power to institute, prosecute, compromise, settle and dismiss a lawsuit in which the corporation’s claim to property is involved.</p> <p>6. Same — Power of Board of Directors Over Corporate Assets. The rule that a board of directors of a going corporation has no power to sell or dispose of its corporate assets in such manner as will disable the corporation from further exercising its corporate powers, without the assent of the stockholders to such sale or disposition, has no application to a compromise and settlement of a