De Garmo v. Petitfils Confiserie

The plaintiff G. C. De Garmo purchased from defendant corporation 200 shares of its capital stock for which he paid $20,000. This is an action by plaintiff to rescind that purchase on the ground of fraud and misrepresentations.

The case was tried before the court sitting without a jury, and findings and judgment were in favor of defendant, from which judgment plaintiff prosecutes this appeal.

Appellant strenuously contends that the findings on all material issues are contrary to the uncontradicted evidence.

We think that this contention must be sustained.

The complaint alleges, among other things, that defendant, for the purpose of inducing plaintiff to purchase its stock, stated and represented to him: (1) That the company had already paid two quarterly dividends of five per cent each; (2) That the then present earnings of the company were sufficient to enable it to pay regular five per cent quarterly dividends thereafter; (3) That nothing had been paid to W. M. Petitfils for the goodwill of his business; (4) That the company had been offered $400,000 for the lease on store No. 1, which was the original store of Petitfils; (5) That W. M. Petitfils would continue to manage and…