Sloan v. Clark

Plaintiffs in each of these actions are limited partners of Ira Haupt & Co. The Haupt partnership went into bankruptcy because of its inability to meet its obligations on large loans made to Allied Crude Vegetable Oil Refining Co. upon the strength of warehouse receipts allegedly issued by defendant American Express Company (Amexco) through a wholly owned subsidiary. Plaintiffs sued Amexco contending that defendant’s tortious acts resulted in Haupt’s insolvency and the loss of plaintiffs’ investment in the partnership. The complaints were dismissed by the trial court on the grounds that…