Disposal Technology, Inc. v. Ehrlich

Plaintiff filed this suit seeking rescission of a contract to purchase all outstanding shares of the defendants’ stock in Western Manufacturing, Inc., on the grounds of fraud and misrepresentation. Defendants filed a counterclaim requesting foreclosure of a stock pledge which was part of the purchase agreement. The trial court found that plaintiff was not entitled to rescission and allowed defendants’ counterclaim for foreclosure of the stock pledge. Plaintiff appeals from the decree in favor of defendants.

*553A review of the facts is necessary.

In 1968 the defendants organized Western…