Opinion ID: 315788
Heading Depth: 1
Heading Rank: 3

Heading: The Defenses of Estoppel and Waiver as a Bar to Plaintiff's Claims

Text: 50 The court's finding that plaintiff was not barred or estopped from seeking to rescind the merger is fully supported by the evidence. To have an effective estoppel or waiver there must be full knowledge on the part of the plaintiff. Where, as here, the crucial information was withheld or concealed the crucial element is not present. Plaintiff did not become aware of the legend on the face of the shares until June 17, 1971, at which time the shares were issued to him. There was no undue delay in tendering the shares back to the defendants and to the Clerk of the Court incident to the commencement of suit. 51 Defendants' argument that the terms of the contract itself created a binding estoppel is also untenable. Defendants are not allowed to violate the Securities Acts under the guise of the contractual provisions. The coutract cannot be used as a shield for wrongdoing amounting to statutory fraud.