AM Castle & Company v. Bagley

CALLISTER, Justice.

Plaintiff, through its Pacific Metals Division, initiated this action to reform and enforce a promissory note executed by defendant. The trial court granted plaintiff judgment, and defendant appeals.

Defendant was an employee of General Metals Company, a close corporation. Between approximately March 3, 1966, and May 12, 1966, Pacific Metals had sold steel of the value of $747.71 to General Metals. Defendant entered into a contract to purchase 50 per cent of the stock of General Metals. He discovered that General Metal's was in a precarious financial position and undertook…