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Corporations Keyed to Klein
Frigidaire Sales Corp. v. Union Properties, Inc
Facts
Petitioner entered into a contract wit Commercial. Commercial was a limited partnership wherein Mannon and Baxter were limited partners and a second corporation, Union, was listed as the sole general partner. Baxter and Mannon were the shareholders of Union. Baxter and Mannon never held themselves out as general partners of Commercial – Petitioner knew of the relationship between the parties at the time of forming the contract. Commercial breached their agreement with Petitioner, and since Union was the only liable partner of Commercial, and Commercial was undercapitalized, Petitioner sought damages from Baxter and Mannon, claiming that they manipulated the limited partnership laws of the state by forming a second corporation to be the general partner of the limited partnership.
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