The Federal Reporter with Key-Number Annotations, Volume 272: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States and the Court of Appeals in the District of Columbia, June-August, 1921. Page: 433
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STANTON V. HAMILTON 433
(272 F.)
into a new and independent contract, based on a new consideration, where-
by he sold his shares, and, if he made the sale merely on representations
that the buyer would by suit enforce the original contract, his attempted
rescission will not prevent recovery.
2. Corporations @320(11%)--Whether there was rescission of original con-
tract, so that recovery could not be had against defendant, who made
secret profit, held for the jury.
In an action by a stockholder, who sold his shares in connection with the
sale by the corporate president of his own stock, to recover a secret profit
made by the president, etc., where the president contended that the stock-
holder rescinded the original contract and disposed of his shares pursuant
to a new contract with the buyer, held that, under the evidence, the
question whether there was a rescission was for the jury.
In Error to the District Court of the United States for the Northern
Division of the Eastern District of Washington; Frank H. Rudkin,
Judge.
Action by J. L. Hamilton against E. H. Stanton. Judgment for
plaintiff, and defendant brings error. Affirmed.
Action at law to recover $21,926.67, with interest thereon from
May 21, 1917, alleged to be due the plaintiff in a transaction involving
the sale to Armour & Co., of Chicago, of 1,0961/3 shares of stock own-
ed by the plaintiff in the E. H. Stanton Company, of Spokane, Wash.
The case was tried before a jury, which rendered a verdict in favor of
the plaintiff for $25,109.06. Judgment accordingly.
Jas. A. Williams and Danson, Williams & Danson, all of Spokane,
Wash., for plaintiff in error.
Wilham G. Graves, Graves, Kizer & Graves, Lee & Kimball, and
W. E. Cullen, all of Spokane, Wash., for defendant in error.
Before GILBERT, MORROW, and HUNT, Circuit Judges.
MORROW, Circuit Judge. The issues in this case are the same
as in Stanton v. Hample, 272 Fed. 424, just decided, with the exception
that in this case the defendant claims that there was a rescission of
the original contract of sale on the part of Hamilton, and the delivery
of his stock upon a new contract, after he knew all the facts con-
cerning the sale of Stanton's stock. It appears that Hample's contract
provided that his stock should be deposited in the First National Bank
at Butte, Mont., and that Armour & Co should pay for it there with-
in a stated time. Hamilton's contract was substantially the same, ex-
cept that it called for the deposit of his stock in the Bank of W. A.
Clark & Bro., in Butte, Mont. By mistake Armour & Co. sent pay-
ment for both stocks to the First National Bank. Hamilton waited until
the time for the payment had expired, then on May 31, 1917, withdrew
the stock. On June 4th, Hamilton notified Armour & Co. by tele-
graph that their failure for 10 days to comply with their contract re-
leased him. Armour & Co telegraphed Hamilton on the same day that
their deposit of draft and notes was by mistake made in the First
National Bank, instead of the Clark Bank, and was an error, and that
the draft and notes had been turned over to the Clark Bank. Armour
:For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes
272 F.-28
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The Federal Reporter with Key-Number Annotations, Volume 272: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States and the Court of Appeals in the District of Columbia, June-August, 1921., legislative document, 1921; Saint Paul, Minnesota. (https://digital.library.unt.edu/ark:/67531/metadc38843/m1/455/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.