MacDonald

MacDonald v. Arrowhead Hot Springs Co.

Good Law
114 Cal. App. 496·1931 Cal. App. LEXIS 848·300 P. 105
Court of Appeal of CaliforniaMay 29, 1931Docket No. 4274.California1,829 words

Opinion

lead Opinion

Thompson, J.

This is an appeal from that portion of a judgment which was rendered in favor of the defendant Seth Marshall, in an action for the reasonable value of the services of an architect. It is contended the defendant Seth Marshall is personally liable for the obligation as a promoter of the corporation.

The Arrowhead Springs Company is a duly organized corporation. It owns a large tract of land in Cold Water Canyon near San Bernardino, upon which there is located a number of hot mineral springs. This company was engaged in the business of bottling and marketing the water of these springs. The defendant Seth Marshall owned 5.000 shares of the stock of this corporation, which was one-third of the entire capital stock thereof. One of the other shareholders of this company was Mr. Charles G. Anthony, who was its business manager. January 15, 1924, three of the other shareholders of this corporation executed and delivered to John B. Elliott an option to purchase their 10.000 shares thereof at the par value of $100 a share. These payments were to be made in semi-annual installments of $100,000. The first installment became due January 1, 1925. Just prior to the last-mentioned date, for a…

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