Murphy v. Casella

In an action by plaintiff to recover damages against defendant for alleged breach of contract, and for fraud based upon facts arising out of the same transaction, the defendant made out a prima facie case on his counterclaim for breach of a contract to form a corporation and it was error to dismiss the counterclaim. The alleged agreement on the part of the plaintiff to advance the corporation a sum of money and to devote his services to supervising certain alterations necessary for the actual functioning of the corporation created a personal liability between plaintiff and defendant which…