Whale Harbor Spa, Inc. v. Thomas E. Wood, as of the Estate of Dorothy W. Wood, Deceased

JONES, Circuit Judge.

The appellant, Whale Harbor Spa, Inc., is a Florida corporation. Its stock was owned in equal shares by Dorothy W. Wood and Al B. Luckey. The corpora tion was managed by Luckey. The Luckey and Wood families had been close friends over a period of many years. Between May 1, 1946, and October 14, 1948, Mrs. Wood made six open loans aggregating $24,750 to the corporation. These loans were not evidenced by promissory notes or other written obligation. On July 10, 1950, Mrs. Wood loaned the corporation $5,000 upon its demand note. On April 7, 1947, the corporation paid Mrs.…