Walker v. Walker Enterprises, Inc.

In 1977, Dennis P. Walker incorporated Walker Enterprises, Inc. (WEI), to engage in the direct mail business; WEI sold merchandise by placing inserts in the billing statements of oil companies, banks, and department stores. Before 1987, Walker owned all of WEI’s issued and outstanding common stock. During 1987, Patrick H. Mueller, Walker’s nephew, and Steven R. Dean, Mueller’s business associate, approached Walker about purchasing WEI. Mueller and Dean proposed to purchase WEI through a limited partnership, Diversified Direct Mail (DDM); Mueller and Dean would be the general partners, and…