John E. Savage v. The Lorraine Corporation

This amounts to a claim on quantum meruit for three different items. First, Savage claims salary of $500 and expenses of $150 per month from June 25, 1942 to May 25, 1943, as president of The Lorraine Corporation, appellee here. Then he claims $1000 as salary for the month of January, 1944, in the same capacity. Finally, he says he is entitled to repayment of $321.60, which he paid to one Harris, an accountant.

The District Court held on the facts that these claims were unfounded and disallowed each. The question is whether there was substantial evidence to support these findings. The record proves there was.

On June 1, 1942, Savage undertook to acquire for David G. and Sara R. Lorraine 600,472.65 shares of the issued capital stock of The Lorraine Corporation. Savage was, as a consideration, to get 50,000 shares of this stock, and return of the moneys advanced, together with interest thereon. On June 24, he concluded the purchase and the next day, by the votes of David G. and Sara R. Lorraine, the directors, he was elected president of the corporation. On account of the poor financial condition of the corporation, David G. Lorraine, who had been receiving $1050 per month as…