Carlton Creditors Ass'n v. Willamette Production Credit Ass'n in Liquidation

Plaintiff, Carlton Creditors Association, Inc., is a corporation formed solely to act as the assignee of the rights of unsecured creditors and stockholders of Carlton Nursery, Inc. (Carlton). It brought this action against Bailey (defendant), alleging the breach of an oral contract by which Bailey agreed to pay the unsecured creditors and stockholders of Carlton about $65,000 apiece a year for three years incident to his purchase of the assets of Carlton from Willamette Production Credit Association (WPCA). Although claims were asserted against other defendants, only the claim against Bailey…