Stewart

The Wise Realty Company, plaintiff, was the owner of certain stock of the Lincoln Realty Company. J. T. Sullivan, and Jafet Lindeberg, plaintiffs, assert a one-third interest in the stock of the Wise Realty Company, and consequently, in the stock of the Lincoln Realty Company owned by the Wise Realty Company. Defendant Ashby 0. Stewart, under claim and color of title to this stock of the Lincoln Realty Company so owned by the Wise Realty Company, sold and conveyed it to his codefendants Kohlberg and others. This action is brought by plaintiffs to have these defendants declared trustees of this stock for the corporation and in the event that it should be held that Stewart’s fellow defendants are innocent purchasers, then to hold Stewart as involuntary trustee for the proceeds of the sale. This brief statement will aid in the marshalling of the facts, which are somewhat complicated, in their proper relations to the questions involved.

In February, 1908, the board of education of the city and county of San Francisco advertised for bids for the rental of a lot situated at Fifth and Market streets and known as the Lincoln School property. The call for bids required that each bid be…