Motor Dispatch, Inc. v. Buggie

Motor Dispatch, Inc. was engaged in the general trucking business. William F. Buggie was president of the business and he was one of four members of the Board of Directors. Buggie, having been unsuccessful in his attempt to buy out the other three shareholders, sold his common stock interest to Motor Dispatch, Inc. for $32,500. He was to receive $5000 within 30 days and an “Installment Note —No Security” (Note) for the $27,500 balance. Motor Dispatch, Inc. defaulted on the installment note. After the default, Buggie filed a counterclaim in a pending action which had been brought by Motor…