Smith v. Turner

ASHBURN, J. *

Defendants appeal from judgment for plaintiffs in action for recovery of moneys paid by them for shares of stock in a California corporation named Sam Turner Mfg. Co., which payments were made under a preineorporation subscription agreement that preceded any steps toward incorporation. Defendants relied principally upon a plea of pari delicto which was rejected by the trial judge.

The purpose of the corporation was to finance the perfection and promotion of a patented machine or device for lifting and moving bed patients, an activity in which defendant Samuel A. Turner (frequently…