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Corporations Keyed to Hamilton
Frontier Refining Company v. Kunkel
Facts
Kunkel approached B. L. Warren, zone manager of Appellant, to discuss taking over a filling station and truck stop owned by Appellant. Kunkel stated he would approach Fairfield to see about raising the money to fund the venture. Kunkel approached Fairfield and Beach to discuss obtaining a loan. Fairfield declined. There was a discussion about Kunkel incorporating and Beach and Fairfield taking stock as an investment. Warren claims and Fairfield denies that he met Fairfield when Fairfield came to look over the station and Fairfield told him the business would be a corporation. Warren advised Appellant by memo that the business would be incorporated under the name of “Kunkel’s, Inc.” financed by Beach and Fairfield. Appellant then executed several agreements signed either “C.D. Kunkel” or “Clifford D. Kunkel dba Kunkel’s, Inc.” Unbeknownst to Fairfield or Beach, Kunkel took over the station and commenced doing business. Fairfield and Beach put some $11,000 into the venture. However, neither knew Kunkel had failed to incorporate. Appellant discovered that by mistake some equipment had been delivered to Kunkel without receipt of payment. Appellant obtained from Kunkel a chattel mortgage naming Kunkel individually as mortgagor. The mortgage disclosed on its face that it was not executed in the name or on behalf of a corporation. Subsequently Fairfield obtained possession of the equipment and claimed ownership. In a companion case, Appellant recovered possession of the property after the court ruled that the mortgage was valid and entered judgment in favor of Appellant.
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