Winston v. Saugerties Farms, Inc.

Defendants Elliott B. Smoak and Anna V. Smoak appeal from a judgment voiding 100 shares of capital stock of the Saugerties Farms, Incorporated, issued to them on June 26, 1939. The complaint charges that the issuance of this stock was fraudulent as to the rights of the plaintiff and other stockholders, and that the corporation did not receive any money, labor or property therefor.

There is little dispute as to the facts. Prior to June 26, 1939, the plaintiff Winston was the owner of a large farm in Ulster county, together with farm machinery used in connection therewith; a herd of seventy…