Kelly v. Smith

Kelly, the defendant below, appeals from a judgment against him in the amount of $30,000. We reverse.

Charles Kelly was a real estate developer. in 1973, he held an option on two pieces of real estate, both of which were abandoned subdivisions. In March of 1973, Charles Kelly, Coy Smith, and Joe Debrow formed a corporation called LanDevCo., Inc. The company was owned equally by these three men until 1976. At that time, Joe Debrow sold his one-third interest in the corporation to Charles Kelly.

LanDevCo, Inc., was formed for the purpose of exercising Kelly's option on the land in Mobile County…