Riddell

The six above entitled actions were consolidated for trial. They involve two corporations — Wilshire-La Cienega Gardens Co. (hereinafter called WilshireLa Cienega) and Baldwin Gardens Co. (hereinafter called Baldwin Gardens)— and the officers and directors of the two corporations. Certain issues raised by the pleadings in the first of the listed cases have been conceded by plaintiffs herein. Three issues remain for decision. The first concerns the case first listed; the second concerns the second listed ease, and the third issue concerns the last four cases listed.

Wilshire-La Cienega and Baldwin Gardens were organized for the purpose of constructing multiple housing projects to be financed by obtaining from the Federal Housing Administration contract or contracts of construction under § 608, Title VI of the National Housing Act, 12 U.S.C.A. § 17443 .

On December 23, 1948, Wilshire-La Cienega received a loan commitment from the Federal Housing Administration, guaranteeing a loan in the sum of $1,937,600 for the purpose of constructing on the Wilshire-La Cienega land a multiple housing project. Pursuant to said Federal Housing Administration commitment Wilshire-La Cienega…