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Business Organizations Keyed to Bauman
Summit Properties, Inc. v. New Technology Electrical Contractors, Inc.
Citation:
2004 WL 1490327 (D. Ore. 2004)Facts
Coleman sold New Technology Electrical Contractors to Electrical Systems, but remained president of the company. New Tech moved to a new property, which was owned by Milestone (another corporation owned by Coleman). Crouser, New Tech’s vice president, signed the new lease on behalf of New Tech, and Coleman signed the lease on behalf of Milestone. Summit Properties approached and express interest in buying the property, but questioned who the property belonged to and its current tenant status. IES responded that New Tech was a wholly-owned subsidiary of IES. New Tech and IES used the property together, used the property alongside each other, and public-presented as related entities. Eventually, IES fired Coleman, which prompted review of the initial lease, and IES/New Tech determined the lease was not properly entered into; Summit disputed this claim.
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