Abbott v. Bob's U-Drive

352 P.2d 598 (1960)

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Nature of the Case

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Facts

P leased certain premises to Thompson wherein Thompson agreed to operate an automobile 'U-Drive' business and an automobile leasing business. The lease required the parties to submit to arbitration any controversy arising out of the lease. Thompson incorporated Bob's (D) and the later incorporated Continental Leasing (D). Bob's (D) rented cars for short periods, and Continental (D) did all the business for leases 12 months or longer. Thompson was president and manager of both corporations and owned fifty percent of the stock of each corporation. The business Thompson did prior to incorporation was now done by both the corporations on the leasehold premises. All the business was conducted from one office. Each corporation kept separate business records, separate bank accounts, separate telephones, and separate stationery. Thompson assigned his interest in the lease to Bob’s (D) in writing. A few years later a dispute arose with respect to performance under the lease. P filed a petition for an order directing Ds to proceed to arbitration. Bob's (D) was willing to arbitrate, but Continental (D) refused. Continental (D) motioned for a dismissal in that there was no assignment of the lease to it and no written arbitration agreement as required. The court ordered Continental (D) to arbitrate the controversy. The arbitrators awarded $2,938.88 to P. Ds filed objections. A joint and several judgment was entered against Ds and Continental (D) appealed.