Barceloux

This action arises out of a sale by the defendants to the plaintiff of a part of the capital stock of the Bank of Orland. The defendants executed a written option to sell their shares of stock to the plaintiff at prices per share stated in the option. The option contained the following :

The agreement referred to contained the following:

.These instruments were delivered to the plaintiff, together with the capital stock referred to therein, and he thereupon paid the full purchase price of the stock agreed upon between the parties. The two suits of the Bank of Orland v. Harlan, referred to in the agreement, terminated without any recovery by the bank, for the reasons stated in Bank of Orland v. Harlan, 188 Cal. 413, 419 [ 206 Pac. 75 ], in which it was held that the transaction between the bank and Harlan, upon which the suits, were based, was in violation of law, constituting a felony, and that, therefore, no recovery could be had thereon.

The court found on uncontradicted evidence, “that by reason of the said final judgment entered in the Harlan lawsuits, the said Bank of Orland did lose the same and failed to recover anything therein, and that the actual loss to the Bank of…