Lutz

In this diversity action brought by Appellee Lutz as plaintiff, appellants attack as unsupported by the record judgments against them for conversion, fraud and negligence.

Lutz’ complaints are centered upon the late Ben H. Sheldon of Los Angeles and his business enterprise: the manufacture of house trailers. Lutz, a resident of the State of Washington, was an investor in that enterprise. Appellant bank is the executor of Sheldon’s last will. Appellant Mae Sheldon is his widow. Appellant Hohly was his accountant. Appellant Flamingo is the corporation organized by Sheldon to receive the enterprise and is the present owner thereof. Appellant Thompson is the present sole owner of Flamingo’s capital stock.

In 1954 Lutz invested $18,000.00 in Sheldon’s venture. A partnership agreement was executed October 18, 1954, by which Sheldon and his wife became general partners with a sixty per cent interest and Lutz became a limited partner *161 with a nine per cent interest in the partnership’s earnings and assets.

Early in 1955 with the consent of Lutz as partner, the business was incorporated as the B. H. Sheldon Company, the name of the corporation subsequently being changed to that of…