Baatz v. Arrow Bar

452 N.W.2d 138 (1990)


Baatz (P) alleges that Arrow Bar (D) served alcoholic beverages to McBride prior to the accident when he was already intoxicated. McBride then drove his auto into P while P was riding on a motorcycle. McBride was judgment proof. P supported their allegations by an affidavit of Jimmy Larson who observed McBride being served drinks while he was drunk and prior to the accident. Edmond and Lavella Neuroth formed the Arrow Bar, Inc. in May 1980. They contributed $50,000 pursuant to a stock subscription agreement. They purchased the Arrow Bar in 1980 for $150,000 with $5000 down and executed a promissory note for the balance with a personal guarantee. The corporation obtained bank financing to pay off the balance of the note in 1983 and Edmond and Lavella personally guaranteed the banknote. Edmond was the president of the corporation and Jacquette Neuroth served as manager. There was no dram shop liability insurance at the time of the injuries to P. P claimed the corporate veil should have been pierced and each individual held liable. In 1987, the trial court entered summary in favor of Arrow Bar and the individual defendants. P appealed. It was reversed and remanded to the trial court for trial. Shortly before the trial date, Edmond, LaVella, and Jacquette moved for and obtained summary judgment dismissing them as individual defendants. P appealed.