Altman

In these two causes, consolidated for trial and for appeal, George T. Altman appeals from an adverse judgment granting plaintiffs-respondents 1 declaratory relief against him and denying his sought-for rescission and cancellation of certain instruments. We have concluded, for reasons hereinafter stated, that, although the trial court correctly decided that Altman is entitled to no relief against plaintiffs, the judgment should he modified to provide that Altman may retain, rather than be divested of, the security evidenced by the fourth trust deed described in the pleadings and judgment, and, as so modified, affirmed.

Prior to April 25, 1956, Altman was the owner of 50 shares, which comprised all the outstanding capital stock, of Everly Enterprises, Inc., a California corporation, hereinafter called Everly. The corporation owned a ranch in Riverside County which had proved unprofitable and was in need of costly improvements. Altman, a practicing attorney and not a farmer, was interested in making a deal whereby someone would fur *763 nisli the money necessary to rehabilitate the ranch and make it into a profitable holding. He contacted plaintiffs Clark and Morales, who as…