Cohen

Plaintiff filed an action under the diversity statute entitled “Complaint for Breach of Contract,” which alleged that certain individual defendants had organized two corporations, which allegedly needed $1,500,000 cash, and which allegedly orally agreed to sell to plaintiff (a) $1,700,000 in first mortgage bonds secured by an indenture on Nevada real estate for the sum of $1,200,000, in order to construct a hotel project; (b) a 13 per cent share of the equity in any corporation operating said hotel, for $60,000.

Plaintiff then alleged that the delivery date was May 19, 1954, and that:

Plaintiff further alleged defendants’ refusal to “execute any of said' documents prepared, and * * * failed and refused to complete their transactions, or any part thereof” with plaintiff and alleged also, on information and belief, that:

and prayed for damages in the sum of $500,000.

Defendants filed an answer, setting up as a first defense, that no cause of action was stated; as a second, the Statute of Frauds (no writing); as a third, usury; as a fourth, the Statute of Frauds (choses in action over $500); and as a fifth, after admitting (a) ownership of the real property involved, (b) that…