Bryan

This is an action on a promissory note of defendants Carrere and Hawley in the sum of $14,400, payable in installments, with attorneys’ fees in case of suit, payment thereof being assumed by appellant Carrere & Hawley, Inc., a corporation, and payment of one-half thereof being assumed by appellant Banks; the stock of Carrere & Hawley, Inc., with the exception of one share, issued for the purpose of incorporating, was owned wholly by Carrere and Hawley. On this note $2,400 had been paid, leaving $12,000 unpaid, but only $4,800 thereof was due at the time of the filing of the amended complaint, and for this amount, and not for the full amount of the note, the court rendered judgment against all the defendants, with interest, attorneys’ fees and costs. From this judgment defendants Banks and Carrere & Hawley, Inc., have appealed.

The record discloses the following facts: About December 20, 1924, defendants C. F. Carrere and C. O. Hawley acquired from R W. and Edythe T. Sloan all the shares of the capital stock of The Agency Company of California, an insurance general agency, in consideration whereof they executed and delivered to the Sloans their note for $18,000. Shortly thereafter…