Wilson

This is a suit to recover undisclosed profits derived from the sale of real property, which proceeds were retained by the defendants as members of a joint adventure.

Mary Flynn Smurda was the owner of Cedar Hedge Apartments, consisting of lots M, N, O and P, block 25, of the city of Santa Monica, in Los Angeles County, together with the apartment house and furnishings thereof. By agreement on the part of plaintiffs, the defendant Fred S. Wilson took an option in his own name to purchase the property for the sum of $175,000. This option was dated December 3, 1925, and expired February 28, 1926. The several real estate firms, who are party plaintiffs in this action, formed the syndicate for the purpose of reselling the property. This syndicate consisted of six units, which composed, a joint adventure with an agreement to participate equally in the profits of the enterprise. One of these units was represented' by the real estate firm of Ford & McNamara, of which the defendant McNamara was an officer and active member. On February 16, 1926, the property was still unsold. The morning of this last-mentioned date, Mr. Bergman, who was a salesman in the real estate firm of George E.…