Frick v. Howard

The issues are:

1. Did Preston, as a promoter, breach a fiduciary duty to the corporation ?

2. Can the defense of want of consideration of the original note securing the assigned mortgage be asserted in an action to foreclose the mortgage where the replacement note was nonnegotiable upon its face ?

3. Does a receiver of a corporation under an assignment for benefit of creditors have the right to assert a defense in an action to foreclose a mortgage given by the corporation?

Did Preston, as a promoter, breach a fiduciary duty to the corporation? It appears without dispute that Preston was the…