Foley Custom Homes, Inc. v. Flater

Opinion by

Judge RULAND.

Plaintiff, Foley Custom Homes, Inc., (FCH) appeals from a summary judgment dismissing its complaint against defendants, Gary L. and Karen L. Flater, based upon the doctrine of res judicata. We reverse and remand for further proceedings.

FCH is a closely held corporation, with Daniel E. Foley and his wife each owning 50% of the company’s stock. FCH entered into a joint venture with Gary Flater, Norman Fisher, and David S. Mowatt, and, for reasons which do not appear of record, loans were made to FCH by Flater, Fisher, and Mowatt. Later, these loans were consolidated in…