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Business Assoctiations Keyed to Gabalson, 3rd Ed.
Baatz v. Arrow Bar
Citation:
452 N.W.2d 138 (1990)Facts
Kenny and Peggy Baatz were seriously injured in 1982 when Roland McBride, driving while intoxicated, crossed the center line and struck them while they were on a motorcycle. McBride was uninsured and judgment-proof. The Baatzes alleged that Arrow Bar served alcoholic beverages to McBride while he was already intoxicated, contributing to their injuries. Edmond and LaVella Neuroth formed Arrow Bar, Inc. in 1980, contributing $50,000 pursuant to a stock subscription agreement. The corporation purchased the Arrow Bar business for $155,000 with a $5,000 down payment, and Edmond and LaVella personally guaranteed the $150,000 balance. Edmond served as president and Jacquette as manager. Based on advice of counsel, the corporation did not maintain dram shop liability insurance.
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