Morgan v. Struthers - 131 U.S. 246 (1889)
U.S. Supreme Court
Morgan v. Struthers, 131 U.S. 246 (1889)
Morgan v. Struthers
Argued March 29, 1889
Decided may 13, 1889
131 U.S. 246
ERROR TO THE CIRCUIT COURT OF THE UNITED
STATES FOR THE WESTERN DISTRICT OF PENNSYLVANIA
A contract between A, a subscriber to the stock of a proposed incorporated company, and B, another subscriber to the same, made without the knowledge of the remaining subscribers, by which A agrees to purchase the stock of B at the price paid for it if at a specified time B elects to sell it, is not contrary to public policy, and can be enforced against A if made fairly and honestly, and if untainted with actual fraud.
This was an action of assumpsit, brought in the court below by J. Pierpont Morgan, a citizen of the New York, against Thomas Struthers and one Thomas S. Blair, citizens of Pennsylvania, to recover the sum of $26,282.19, with interest, on a certain contract in writing, more particularly described hereafter. The defendant Blair not having been served with process, the case proceeded against Struthers alone.