Defenbacher

This is an action for fraud in which the plaintiffs seek damages, an accounting and other relief for the alleged violation of a fiduciary relationship by the defendant Kenneth R. Walker during the course of certain timber transactions. Defendants deny that Kenneth R. Walker was such a fiduciary and contend that, even if he were, plaintiffs waived the alleged fraud. For an *2 understanding of the problem a rather detailed review of the facts, as disclosed by the record, is necessary.

Plaintiffs, Minnesota citizens, and Kenneth R. Walker, a California citizen, are descendants of one Thomas Barlow Walker and are shareholders in the Red River Lumber Company (hereinafter referred to as “Red River”), a corporation founded by him. The defendant Blair H. Walker is Kenneth R. Walker’s wife and the La Tour Peak Timber Company (hereinafter referred to as “La Tour”) is a California corporation wholly owned by Kenneth • R. Walker and his wife who are also its sole officers and directors..

For some thirty years prior to this litigation, Kenneth R. Walker was employed by Red River and the plaintiffs, in various managerial capacities and resided in West-wood, California, close to the timber…