Elberta Oil Co. v. Superior Court

The petitioner Elberta Oil Company is a corporation duly organized and existing under the laws of the state of California, and petitioner M. P. McCormick is an attorney at law duly and regularly licensed to practice in all the courts of the state of California. On March 4, 1929, there was filed in the Superior Court of the State of California, in and for the County of Kings, an action entitled E. A. Russell et al., Plaintiffs, v. T. PI. Rougeot et al., Defendants, in which the Elberta Oil Company, a corporation, was named as one of the defendants. It appears in the allegations of this complaint that the plaintiffs were minority stockholders of the Elberta Oil Company. Joined with the corporation as defendants were its officers and members of its board of directors, besides others.

The complaint alleges that the Elberta Oil Company was organized for the purpose of drilling for oil in unproven or “wildcat” territory. It secured a lease on twenty acres of land in San Luis Obispo County, California, and started its operations thereon. After considerable work was done upon the well, it is alleged that an oil sand was discovered, and that the officers and directors of the corporation…