Cottrell v. Pawcatuck Company

Southerland, Chief Justice:

The essential question is whether the consideration received upon a sale of corporate assets was grossly inadequate.

Plaintiff, a substantial stockholder of the defendant, The Pawca-tuck Company, formerly the C. B. Cottrell & Sons Company (herein referred to as “the old company”), sued to enjoin a sale of assets on the ground that the price was grossly inadequate.

An outline of the basic facts follows. It will be supplemented by additional facts in the discussion of plaintiff’s contentions.

The selling corporation is the old company, an old closely-held family…