Lagarde et al. v. Anniston Lime & Stone Co., 126 Ala. 496

Summary

The company had been negotiating for the purchase of certain lands that included a valuable limestone quarry. The owner of two-thirds of the subject property entered into a lease and a contract to sell in favor of the company. Thereafter the officers purchased all of the property. The company filed a bill in equity alleging that the officers had breached their fiduciary duty to the company. The trial court overruled the demurrers to the bill. On appeal, the court affirmed, and held that the bill lacked equity so far as it sought relief concerning the property that was not under contract, but was good as to the other property. The court concluded that because the demurrer was interposed to the bill as a whole, it was properly overruled. The court found that both the lease and the contract to sell gave the company rights, which the officers were bound to recognize and respect. Accordingly, their purchase of the property was a palpable breach of their duty to the company. On the other ...