Burns v. Stanton

OPINION

Opinion by

Chief Justice MORRISS.

Allan L. Burns and Lawrence S. Stanton, previously co-owners of a successful building materials company, Insulation Supply Co. (ISC), went their separate ways. As part of the separation, Stanton, a former president and director of ISC, left with a nice buyout package, under which he was initially paid as a consultant and later also sold his shares of corporate stock back to ISC for seven figures. All obligations were secured with one-half of the ISC corporate stock. Those transactions were completed in 2005. ISC initially was a corporation, 1 but in 2006…