Scott v. Huston

Citations

• 247 Pa. 536
• 93 A. 763
• 1915 Pa. LEXIS 881

Syllabus

<p>Trespass — False representations — Purchase of shares of stock— Statement of condition of corporation — Prospectus—Nonsuit.</p> <p>In an action to recover damages for false representations alleged to have been made at the time of the purchase by plaintiff from defendants of certain shares of stock of a corporation, plaintiff based his right to recover on the ground that' the defendants concealed from him the existence of an outstanding oil and gas lease upon approximately one-half of the land owned by the corporation, and on defendants’ failure to disclose the price at which they had a short time previously purchased a large number of shares. It appeared that before purchasing the stock plaintiff examined the prospectus issued by the corporation, and visited the property and saw the oil and gas being produced; that after becoming a stockholder he was elected a member of the board of directors, in which capacity he continued to serve for a period of four years, at the expiration of which time, after unsuccessful efforts had been made to dispose of the property and the stockholders were required to advance money to pay taxes, he attempted to return his stock, which the defendants refused to accept. Held, the court did not err in entering a nonsuit.</p>