Wilkes v. Springside Nursing Home, Inc.

In 1951 Wilkes acquired an option to purchased a building and lot located on the corner of Springside Avenue in Massachusetts. Riche, Quinn and Pipkin joined Wilkes in his investment. Each men invested $1,000. At the time of the incorporation it was understood by all of the parties that each would be a director of Springside and each would participate actively in the management and decision making involved in operating the corporation. The bad blood between Quinn and Wilkes affected the management. Wilkes gave notice of his intention to sell his shares for an amount based on an appraisal of their value. At the annual meeting, Wilkes was not reelected as a director nor as an officer. The meetings of the directors and shareholders were used as a vehicle to force Wilkes out of active participation in the management. The severance of Wilkes from the payroll resulted not from misconduct or neglect of duties, but because of the personal desire of Quinn, Riche and Connor to prevent him from continuing to receive money from the corporation.