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Business Organizations Keyed to Allen
Kinney Shoe Corp. v. Polan
Citation:939 F.2d 209 (4th Cir. 1991).
Polan owned two companies: Polan Industries, Inc. and Industrial Realty Company. Industrial did not issue any stock certificates, had no assets, income or bank accounts. Kinney held a leasehold interest in a manufacturing plant, but had ceased using it for operations in June 1983. In November 1984, Polan and Kinney began negotiating a sublease on the plant. Kinney and Industrial entered a lease in December 1984, but a written lease was not executed until April 1985. Industrial, thereafter, subleased part of the building to Polan Industries. Polan made the first rental payment to Kinney from his personal funds, but no other payments were ever made. In 1987, Kinney obtained a judgment against Industrial for $166,400.
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