Warner v. Brown

HUTCHESON, Circuit Judge.

This appeal and cross-appeal bring up controversies between two stockholders in Big State Vending Company, a corporation engaged generally in manufacturing and selling vending machines. They began in a suit by appellee on a promissory note for $4000.

Appellant, admitting its execution, denied liability on it, and, by cross-action, sued for sums in excess of appellee’s claim against her.

Her defenses to the note were: that it had been given for appellee’s one-third of the stock in the company, of which appellee was president; that the stock was worthless and known by…