M. W. Elkins & Co. v. Ashley

In an effort to refund a bonded indebtedness of $24,000, some of which was in default both as to principal and interest, Hunter Speciál School District of Woodruff .county entered into negotiations with M. W. Elkins Investment Company, and on September 2, 1933, an offer made by the Elkins Company was accepted. Directors of the school district at that time were J. I. Ashby, W. P. Dawson, W. J. Penrose, A. D. Froman, and S. W. Gray.

On September 26,1933, T. W. Penrose as a taxpayer of the district filed suit in the Woodruff chancery court. In the complaint it was asked that the contract entered…