Black Point Aggregates, Inc. v. Niles Sand & Gravel Co.

The complaint in this action for declaratory relief sought determination of the date when interest began to run on unpaid balances due under written agreement between the parties. However, defendants, by answer and cross-complaint, asserted that the contracts were in violation of the Corporate Securities Act. and this issue consumed the major portion of trial time. Judgment was for plaintiff on both complaint and cross-complaint, and defendants appeal. The issue of illegality is determinative.

In 1951, the Commissioner of Corporations authorized issue of plaintiff corporation’s stock, but…