Combe v. Warren's Family Drive-Inns, Inc.

HOWE, Justice:

This appeal involves two lawsuits consolidated for trial.

Warren’s Family Drive-Inns, Inc. (the “Corporation”) was formed under Utah law in 1971 for the purpose of engaging in fast food service. All of the stock was sold to Keith Combe and Dean Taggart in 1973 for a down payment of $10,000, Combe receiving 49% of the stock and Taggart 51%. The two principal assets of the Corporation consisted of the Roy unit and the Riverdale unit, two drive-in restaurants under leasehold. Taggart operated the Roy unit and Combe the Riverdale unit. In 1976, the Roy unit was remodeled at a cost of…