Haverland v. Lane

Citations

• 89 Wash. 557
• 154 P. 1118
• 1916 Wash. LEXIS 844

Syllabus

<p>Fraud — Purchase of Stock — Deceit as to Buyer. In an action for fraud in tbe sale of corporate stock, concealment of tbe fact that the stock was bought for the account of an undisclosed buyer is immaterial, where that fact made no difference to the sellers, who were concerned only in getting a satisfactory price.</p> <p>Same — Purchase of Stock — Deceit as to Receivership. Fraud in the purchase of corporate stock cannot be predicated upon the representations that, unless the stock was sold to defendant, the company would be put in the hands of a receiver, where it appears that the company was insolvent or about to become so, and subject to a receivership unless the stock was secured by those who could lend it a new credit.</p> <p>Corporations — Sale of Stock — To Officer — Fraud—Duty of Purchaser — Disclosure of Market. Upon the purchase of corporate stock by another stockholder who was an officer in the company, the latter is not bound to disclose his market or reveal a contract that was the result of a personal venture, if the sale was not for the benefit of the corporation.</p> <p>Same — Purchase of Stock — Fraud—Evidence—Sufficiency. In such a case, damages for the misrepresentations cannot be claimed by sellers of the stock who had opportunity to investigate the books of the company and received their own price, which was about its actual value and in advance of the market price, if it had a market value, and the parties dealt at arm’s length.</p>