Big Bend Milling Co. v. Drake

This action was brought to recover $4,593.98, paid by a corporation on a note given in connection with a transaction which the plaintiff claims was a purchase by the corporation of its own stock. From a decree entered by the court holding that the transaction in question was a loan and not a purchase, this appeal was taken.

It is admitted by all parties to this controversy that if the transaction was a purchase it was illegal, under our decisions in Duddy-Robinson Co. v. Taylor, 137 Wash. 304, 242 Pac. 21, where we held that a corporation can not legally purchase its own stock, and that if it…