Gagnon

This is an appeal from a judgment growing out of facts of which the following is a sufficient statement: In July, 1924, the defendant Gagnon doing business under the name of Affiliated Enterprises, secured an option on a tract of about thirteen and one-half acres of land in the city of Los Angeles. To exercise the option and purchase the land, he proceeded to organize a “syndicate” to which he transferred his option and which proceeded to purchase the property. The plaintiffs were members of the syndicate as was Gagnon, his interest being given to him as part of the consideration for the transfer of his option. The parties purchased the land with a view to its subdivision, improvement, and resale. The title to the property was to be conveyed to the Bank of America, as trustee, to hold for the beneficiaries, and to perform for their benefit the countless duties connected with conducting the business of the syndicate, collecting its money, paying its debts, and similar details. To effect all of these purposes and to define the rights and duties of the parties, the members of the syndicate executed among themselves a “syndicate agreement” in which, among other things, it was provided…