Helburn Thompson Co. v. All Americas Mercantile Corp.

Finch, J.:

It appears that the claimant’s assignor, one Paats, purchased stock amounting to $50,000 in the All Americas Corporation and became an officer and director thereof. He subsequently claimed the right to rescind the sale on account of false and fraudulent representations as to the corporate assets which induced him to make the purchase. It was conceded by the corporation that such representations were false and fraudulently made and that Paats had the right to rescind. An adjustment agreement of compromise thereupon was entered into between the corporation and Paats, whereby Paats was…