Linden Homes, Inc. v. Larkin

Linden Homes, Inc., and Cloverdale Construction, Inc., were organized at the same time and had the same stockholders, directors and officers. The boards of directors of each corporation had authority to borrow money and to make and issue notes and other evidences of indebtedness, but Linden Homes had never borrowed money without the express approval of its board and the entry of such approval in the minutes of the corporation, and it had not authorized its president to execute the promissory note sued on in this action. Cloverdale Construction erected houses on land owned by Linden Homes.…