Sandell, Inc. v. Bailey

Plaintiff and respondent Sandell, Inc., a corporation, brought an action in the Superior Court of Fresno County against defendant, appellant and petitioner herein, John B. Bailey, upon a promissory note executed by him in the sum of $50,000. It was given for a loan by plaintiff Sandell, Inc., to Bailey, with an option to purchase stock of the Cleary Oil Company, Ltd., a corporation in which defendant and Victor I. Sandell were stockholders. All stockholders executed their preemptive rights. Bailey delivered to Sandell, as trustee, 5,000 unendorsed shares of corporate stock by way of pledge to…