Gulf States Abrasive Manufacturing, Inc. v. Oertel

PEDEN, Justice.

Appellee John Oertel filed this suit against Gulf States Abrasive Manufacturing, Inc. and others, alleging that by can-celling his 25,000 shares of stock in the company, the defendants had converted them and breached the company’s contract with him, despite his having performed his duties under the contract, namely, to help set up the company and to get it into production.

The company alleged that Oertel’s certificate for 25,000 shares of company stock was void from the outset because the consideration for its issuance was a promissory note executed by Oertel in favor of Gulf…