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Corporations Keyed to O’Kelley
Covalt v. High
Citation:
675 P.2d 999 (1983)Facts
Louis E. Covalt and William L. High were corporate officers and shareholders of CSI. Covalt owned 25% of the stock and High owned the remaining 75% of the stock. In late 1971, after they had become corporate officers, they orally agreed to the formation of a partnership. In December 1978, Covalt resigned his corporate position and was employed by a competitor of CSI. Covalt, however, remained a partner with High in the ownership of the land and building rented to CSI. On January 1979, Covalt wrote to High demanding that the monthly rent for the partnership real estate leased to CSI be increased from $1,850 to $2,850 per month. High did not agree to the increased rent and took no action to renegotiate the amount of the monthly rent. High testified that he felt CSI could not afford a higher rent.
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