Ian M. Cumming v. Glendon E. Johnson

Glendon Johnson appeals a judgment of specific performance of an oral stock transfer agreement between Johnson’s brother Franklin, who was acting as Johnson’s agent, and the plaintiff, Ian Cumming. Johnson asserts that the district court lacked subject matter jurisdiction, that enforcement of the oral agreement was barred by the statute of frauds, and that his wife’s community property interest, in the disputed stock could not be transferred under the trial court’s order. We affirm the district court.

Johnson and his wife, Bobette Johnson, are Texas residents. Cumming is a Utah resident. All three are shareholders in Terracor, Inc., a Utah corporation. Cumming has been a director of Terracor since March 1970 and president of the corporation since September 1971.

In 1973 Terracor was involved in litigation with Avco Financial Services, Inc. Avco and other plaintiffs brought three actions against Terracor, naming Glendon, Franklin, and Bobette Johnson and others as individual codefendant-guarantors. In order to settle this litigation, Franklin Johnson reached an oral agreement with Cumming. ■ Under this agreement, Glendon and Franklin Johnson and Roger Boyer, a third Terracor…