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Corporations Keyed to Hamilton
Baatz v. Arrow Bar
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- The Brief Prologue provides necessary case brief introductory information and includes:
- Topic: Identifies the topic of law and where this case fits within your course outline.
- Parties: Identifies the cast of characters involved in the case.
- Procedural Posture & History: Shares the case history with how lower courts have ruled on the matter.
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- The Case Brief is the complete case summarized and authored in the traditional Law School I.R.A.C. format. The Pro case brief includes:
- Brief Facts: A Synopsis of the Facts of the case.
- Rule of Law: Identifies the Legal Principle the Court used in deciding the case.
- Facts: What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case. Review the Facts of this case here:
The Baatz were riding a motorcycle when they were struck by an automobile driven by Roland McBride, who was intoxicated at the time. Baatz alleges that Defendant, Arrow Bar, Inc., is contributory negligent because it served alcoholic beverages to McBride prior to the accident despite the fact that he was already intoxicated. Arrow Bar Inc., was formed in May 1980 by Edmond and LaVella. Edmond and LaVella contributed $50,000 to the corporation pursuant to a stock subscription agreement. In June 1980, the corporation purchased the Arrow Bar for $155,000 with a $5,000 down payment from Edmond and LaVella. They personally guaranteed the remaining $150,000 note. In 1983, the corporation obtained financing from a bank to pay off the $145,000 purchase agreement, which Edmond and LaVella again personally guaranteed. Edmond is the president of the corporation and Defendant, Jacquette Neuroth, serves as the manager of the business. The corporation did not have dram shop liability at the time of the Baatz accident. In 1987, the trial entered summary judgment in favor of Defendants. Baatz appeal and this court reversed and remanded to the trial court. Shortly before the new trial, Edmond, LaVella and Jacquette moved for and obtained summary judgment dismissing them as individual defendants. Baatz claims that the corporate veil should be pierced in this instance, making Edmond and LaVella individually liable as shareholders of the corporation. Baatz relies on several arguments to support this claim: (1) Edmond and LaVella personally guaranteed corporate obligations; (2) the corporation is their alter ego; (3) the corporation is undercapitalized, (4) the corporation failed to observe corporate formalities.
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- Reasoning and Analysis: Identifies the chain of argument(s) which led the judges to rule as they did.
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