118 P. 551 | Or. | 1911
delivered the opinion of the court.
Conceding, without deciding, that an issue is raised as to the ownership of the defendant Donaldson in 6,950 shares of the stock in question, we think his ownership is sustained by the weight of the testimony on the merits of that controversy.
“By force of this principle, equity goes behind the form of a transaction in order to give effect to the intention of the parties either to aid an act abortive at law because formally defective or to impose a liability as against an evasion by a formal concealment of its true character.” 16 Cyc. 134.
This general principle is further illustrated by the following authorities: Texas v. Hardenberg, 10 Wall. 81 (19 L. Ed. 839); Craig v. Leslie, 3 Wheat. 578 (4 L. Ed. 460); Campbell v. Freeman, 99 Cal. 546 (34 Pac. 113); Dodd v. Wilson, 4 Del. Ch. 114, 408; Sandeford v. Lewis, 68 Ga. 484; Pomeroy v. Benton, 57 Mo. 551; Hardin v. Emmons, 24 Nev. 329 (53 Pac. 854); Stockton v. Central R. Co., 50 N. J. Eq. 73 (24 Atl. 964: 17 L. R. A. 97); Meier v. First Nat. Bank, 55 Ohio St. 460 (45 N. E. 907); Frink v. Cole, 10 Ill. 339; Bennett v. Minott, 28 Or. 339 (39 Pac. 997: 44 Pac. 288). With this rule in mind, let us examine the facts as disclosed by the testimony.
On the merits, Proebstel is shown to be acting in good faith for the reason that he had another cause of suit against said Trout in connection with stock in that corporation, and it was thought best to include the two in the same complaint in the first instance. From a legal standpoint, as well as from the substantial equities of the case, we think the defense of the defendant Trout is without merit, and the decree of the court below should be affirmed. Affirmed.