Given v. Times-Republican Printing Co.

Citations

• 114 F. 92
• 52 C.C.A. 40
• 1902 U.S. App. LEXIS 4066

Syllabus

<p>1. Estoppel In Pais. '</p> <p>■ ’ One who, by his acts or representations, or by his silence when he ought to speak out; either intentionally or through culpable negligence, induces another to believe certain facts to exist, and the latter rightfully acts on such a belief, so that he will be prejudiced if the former is permitted to deny the existence of such facts, is thereby conclusively estopped to interpose such denial. ■</p> <p>2. Same — Vendor of Stock Asserting Indebtedness of Corporation to Him.</p> <p>The vendor of stock may, by his representations or silence, estop himself from asserting against a purchaser an indebtedness of the corporation to him. The sole stockholder of a corporation, by his management thereof, by his treatment of his account with it, by his statement of its resources and liabilities, and by his silence regarding any liability of the corporation to him, induced a purchaser to buy his stock in the belief that the corporation was not indebted to him. Ucli, the vendor was estopped from asserting or enforcing any indebtedness of the corporation to him as against the purchaser of his stock.</p> <p>& Equity — Stockholder May Maintain Bill to Enjoin Action at Law Against Corporation.</p> <p>A stockholder of a corporation, who has been induced by the representations or culpable negligence of a vendor to buy his stock in the belief that the corporation is not indebted to him, may maintain a bill in equity to restrain the vendor from prosecuting an action of debt against the corporation.</p> <p>(Syllabus by the Court)</p>