Prewitt v. Branham

This is a conversion suit. The Prewitts sued Ronald C. Branham and Glenn Foster, Inc. 1 for converting the assets of the Prew-itts’ automobile body shop business. Gary Prewitt owned and operated the body shop as his sole proprietorship. He and Branham orally agreed 2 to form a corporation to operate the body shop. Prewitt agreed to contribute the assets 3 of the business for 50% of the stock of the proposed corporation. Branham represented he would contribute $50,000 to receive 25% of the stock. Instead of contributing his own money, Branham borrowed the $50,000 from defendant Glenn Foster,…