Brown v. Bracking

Citations

• 11 Idaho 678
• 83 P. 950
• 1906 Ida. LEXIS 7

Syllabus

<p>Objection of Parties to Mining Contract — Evidence to Support Judgment Insufficient When.</p> <p>1. Where it is shown that B.' and C. agree to incorporate a mining company, they to pay all the expenses of incorporation, and use their efforts and influence in the sale of treasury stock, the proceeds of which are to be used in the development of the mines, and it is further shown that after such incorporation is perfected and the stoek issued to the respective parties, B. sold seventeen thousand five hundred of his one hundred and seventy-four thousand shares, and C. his entire holding of one hundred and seventy-four thousand shares, a very small portion of the proceeds of which was used in the development of the mines and there was no money in the treasury for development work, an injunction should issue restraining the further sale of individual stock in the corporation until the treasury stock as agreed upon is sold.</p> <p>2. Where the evidence shows a disregard of the contract entered into prior to the organization by the promoters of a mining corporation and the owners of the mining claims forming the basis for sueh corporation, and the preponderance of the evidence shows that treasury stoek should first be sold to further develop the property, and instead of disposing of treasury stock, large holdings of the individual stoek are sold and the proceeds not applied to the development of the property, it is evidence of bad faith, and a judgment in favor of the promoters based upon such evidence should be reversed.</p> <p>(Syllabus by the court.)</p>