Meyer v. Walker Land Reclamation, Inc

Plaintiff appeals the lower court’s entry of orders dismissing his complaint and entering default judgment on defendant’s counterclaim.

Between 1956 and 1969, plaintiff owned almost 99% of the stock in defendant corporation. In 1969, he sold off enough of the corporate stock to leave him with a 30% interest. A part of this transaction involved a loan of $6,667 to the corporation.

On July 16, 1974, plaintiff filed suit seeking return of $4,726.26 still owing on the loan. In its answer, defendant admitted that this amount was indeed outstanding, but defendant denied that it was indebted to…