Opinion ID: 1248085
Heading Depth: 1
Heading Rank: 12

Heading: sales out of trust

Text: In addition to misstatements contained on the Balance Sheet for May 31, 1974, Plaintiffs contended that Defendants made certain additional misrepresentations as set forth in Plaintiff's specifications numbers 4, 5, 6, 7, 9, and 10. These are discussed in Section III above. The principal proofs offered in support of these specifications were in respect to certain transactions referred to at trial as Sales out of Trust. The evidence as to these matters may be summarized as follows: [Here the trial judge, in a five-page statement, discusses that which took place within the corporate business between May 31, 1974 (the date of the balance sheet) and September 3 (the date of the sale). In the interest of brevity, we refrain from printing the same. In is sufficient to say that we agree with his findings of fact and conclusions. He found that sales out of trusts occurring after May 31, 1974, were changes in the corporation's financial condition or property other than changes in the usual and ordinary course of business, rendering untrue the sellers' written representation and warranty.]