Norman B. Lawton and Leonard B. Lawton v. Dorothy K. Strong

ALLEN, Circuit Judge.

This appeal attacks the judgment of the District Court entered in a ease tried without a jury, adjudging defendants liable for damages for constructive fraud in the purchase by defendants from the plaintiff, their sister, of 8,020 shares of stock in the Star Cutter Company, a Michigan corporation, formed in August, 1949.1 The business had been started in 1927 by the father of plaintiff and defendants. It had operated as a family corporation until 1940 and as a family partnership from 1940 to 1949. The transactions between the parties arranging for the sale of plaintiff’s…