Conklin v. Patterson

TAYLOR, Justice.

In March, 1957, the defendants (appellants) were directors, and Ogden and Patterson were president and vice-president, respectively, of the National Life and Health Corporation of America. The corporation had recently been organized and was engaged in raising capital required to obtain a license from the state to commence business as an insurance company. The capital was being accumulated from proceeds of sales by the corporation of shares of its capital stock.

Defendant Patterson, living at Caldwell, suggested to the plaintiff (respondent) that he purchase shares in the…