Royal Air Properties, Inc., a Corporation, Harold L. Heathman and Madge I. Heathman v. R. Philip Smith

Having in mind the construction of luxury apartments in Palm Springs, California, one Meade Hargiss interested appellant Harold L. Heathman, his sister Esther Peister and his son Michael Heathman in the project; and as a consequence a corporation, Royal Air Properties, Inc., was formed. In furtherance of bringing the objective of the plan to fruition the corporation acquired a seven-acre tract in Palm Springs for a purchase price of $235,000. The sum of $70,000 was paid as a down payment; the remainder was to be paid within two years.

From September 1956 through March 1957 plans were being worked out for the construction of seventy-one luxury apartment units and other facilities. One apartment unit was completed about the end of March 1957.

In the fall or winter of 1956, appellee Smith learned of the project that Royal Air Properties was undertaking. To the person from whom he had received the information as to the Royal Air project, he expressed an interest in obtaining an apartment in Palm Springs. Shortly thereafter he was contacted by Harold Heathman with the purpose of getting him (Smith) interested in purchasing an apartment in the Royal Air project. During the next…