Coast Cities Coaches v. Nelson L. Whyte and Fred L. Hickling

In November of 1960 the appellee Nelson L. Whyte filed a complaint in equity against the appellants Coast Cities Coaches, Inc., and John L. Williams its sole stockholder, and joined as a defendant Fred L. Hickling whose interests were similar to those of Whyte. The complaint alleged that in 1952 Whyte and Hickling sold the stock of Coast Cities Coaches, Inc. (hereinafter referred to as the bus company) to Morris and Green by a contract under which the sellers were to be paid $120,000 for their stock plus the sum of $154,422.96 owed them by the company. Payment for the stock as well as the corporate indebtedness to the sellers was provided to be made by the bus company, out of a particular fund - "one half of the net earnings of the company computed annually, at the end of each calendar year."