Ramo, Inc., Petitioners v. H. E. English, Respondents

Summary

The Texas Supreme Court held that the cash advances from Red Ball to Ramo were loans, not dividends, and therefore did not constitute an event of default permitting acceleration of the notes; it also clarified the allocation of the $787,500 setoff for breach of warranty, deleted an improper charge provision, and set aside the Court of Civil Appeals judgment, affirming the modified trial court judgment.