Lucking v. Welbilt Corp.

Detroit-Michigan Stove Company, a Michigan corporation, finding itself in financial difficulties, which had resulted in extremely heavy losses for the years 1953 and 1954, and finding themselves in default on the payments due their bank, on a loan obtained to enable them to remain in business, and faced with the threat of foreclosure of the bank loan and the prospect of being forced into bankruptcy, employed defendant Joseph Freedman, an investment counselor for the Cleveland and Barbour families (majority stockholders of the corporation) to assist them in finding a way out of their financial…