O'Reilly v. Cellco Industries, Inc.

LIPEZ, Judge:

This is an appeal from the trial court’s judgment in favor of appellee, defendant below, in an action begun by appellant, plaintiff below, by confessing judgment on certain notes executed by appellee.1

Appellee, Célico, Inc. (Célico), was incorporated on April 18, 1967. There were six shareholders: Robert E. Lee, Frank Diekneite, Donald Schmuck, Donald Hamilton, Frederick J. O’Reilly, and Phillip Crowley.2 Célico elected to operate under Subchapter S3 of the Internal Revenue Code. Célico borrowed money from the Small Business Administration (SBA) in order to purchase a plant in…