Business Associations Keyed to Hamilton
Hanewald v. Bryan’s Inc
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The Bryans (D) operated a general retail clothing store called Bryan’s Inc. (D). They did not pay the corporation for stock that was issued. Bryan’s Inc. (D) bought inventory and assets from Hanewald’s (P) for cash and a corporate promissory note. A lease was also signed for Hanewald’s (P) store. When Bryans (D) closed, it paid off the other creditors, but avoided Hanewald (P) by sending a notice of rescission to side-step the lease. Hanewald (P) therefore sued the Bryans (D) for personal liability and also sued their corporation. The trial court ruled against the corporation, but did not find the Bryans (D) personally liable. Hanewald (P) filed an appeal.
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