Pendleton v. Williams

ETHRIDGE, Chief Justice.

This case involves a suit by a college, through its receivers, (1) to recover losses suffered as a result of its president purchasing stock for it in defendant insurance company, on the theory that the insurance company and its president were participants with knowledge of a breach of trust by the college president; and (2) equitable estoppel of a charitable corporation from asserting the invalidity of an executed purchase of corporate stock and a defense of ultra vires.

This action was brought by T. S. J. Pendleton and R. G. Nichols, Jr., receivers of J. P. Campbell…