Freese v. Smith

LEWIS, Judge.

The facts of this case arise out of a stock purchase agreement between Howard Freese (the “plaintiff”) and George Smith (the “defendant”) for shares in E. J. Smith & Sons Company (“EJS”), a company owned almost exclusively by defendant. EJS was a wholesale distributor of turf maintenance and irrigation equipment. However, in 1987, EJS was in financial difficulty and the defendant began to seek new capital for EJS. Defendant employed the services of Ronald Norelli to conduct a strategic feasibility study. It was the opinion of Mr. Norelli that EJS needed an infusion of $1.5…