Goodman v. Ladd Estate Co.

Plaintiffs brought this suit to enjoin the defendant Ladd Estate Company, a Washington corporation, from enforcing a guaranty agreement executed by Westover Tower, Inc., a corporation, in favor of Ladd Estate. From a decree dismissing the suit plaintiffs appeal.

In 1961 the defendant Walter T. Liles ① held all the common shares of Westover and he, Dr. Edmond F. Wheatley and Samuel H. Martin were its directors.

On September 8, 1961, Dr. Wheatley borrowed $10,000 from Citizens Bank of Oregon and gave his promissory note therefor, which was endorsed by Ladd Estate. Contemporaneously with this…