Miller's Shoes & Clothing v. Hawkins Furniture & Appliances, Inc.

Peterson, Justice.

The issues presented by this appeal arise as a result of the sale of a closely held corporation which subsequently suffered financial difficulties. Defendant Fred Hawkins sold his shares, comprising all issued stock of Hawkins Furniture and Appliances, Inc., to one Virgil W. Madson and received in return a small amount of cash, a note executed by Madson and his wife and by the corporation, and a security interest in the corporate stock and in the corporation’s equipment and inventory. After Hawkins foreclosed his security interest in those assets, plaintiffs, subsequent…