Carlton v. Castranova

From a judgment in favor of defendants after a nonjury trial, in an action to have defendants declared trustees of certain corporate stock, plaintiffs appeal.

All parties except defendant Cavanaugh are physicians and he is a professional hospital administrator. They joined together in a project to establish a hospital. Each paid $12,500 toward the purchase of the land and loaned money to a corporation formed by them (Castranova and Robone being treated as one unit). Pursuant to permit, 125 shares of stock in the corporation were issued to each of the five participants in exchange for loans…