Goldberg v. Paramount Oil Co.

VALLÉE, J.

Appeal by defendant from an adverse judgment in an action for money allegedly paid for securities sold in violation of the Corporate Securities Act.

Defendant had a contract with the owner of realty in Kern County giving it the right to develop underlying oil deposits, under which the landowner’s royalty was one-eighth of all oil recovered. On February 2, 1953, defendant entered into a written contract with plaintiff which reads:

“SUB Operating, Maintenance and Drilling Agreement.

“WITNESSETH:

“1. Paramount has an Operating and Maintcmce Agreement, covering in part certain real property…