McLaughlin Land & Livestock Co. v. Bank of America, Nat. Trust & Sav. Ass'n

The appellant, McLaughlin Land & Livestock Company, was a corporation in Monterey county, Cal., the entire stock of which was owned within the McLaughlin family; Patrick McLaughlin, Kathryn McLaughlin, Mary McLaughlin, and Thomas Maher, each owning one and one-quarter shares out of the total of five. Patrick McLaughlin had been president since the death of his father in 1923. Incorporated in 1913 the appellant was to engage in raising livestock and transacting general livestock business in all its branches, and to purchase lands, develop, cultivate, improve, and farm lands, to raise livestock, and transact a general farming and agricultural business in all its branches. Patrick, Mary, and Kathryn were brother and sisters, and Thomas Maher was their foster brother. The appellant had owned and operated, at least prior to 1932, a large ranch south of San Ardo in Monterey county, Cal. For failure to pay its corporate franchise tax the corporate -powers, rights, and privileges of the appellant were suspended by the state of California from May 8, 1934, to April 24, 1936, when its powers, rights, and privileges were revived by payment of said tax.

Prior to 1926 the appellant was…