Title: Abel v. Forrest Realty, Inc.

State: alabama

Issuer: Alabama Supreme Court

Document:

484 So. 2d 1069 (1986)
Burton C. ABEL, Jr.
v.
FORREST REALTY, INC., George D. King, Jr., and Christie King Thomason.
84-1051.

Supreme Court of Alabama.
January 24, 1986.
Rehearing Denied February 21, 1986.
*1070 F. Michael Haney, of Inzer, Suttle, Swann & Stivender, Gadsden, for appellant.
J. Richard Carr, Gadsden, for appellees.
MADDOX, Justice.
This is an action seeking dissolution of a corporation by a shareholder who owns one-third of the outstanding shares of stock. The trial court held that no grounds for dissolution of the corporation exist. We affirm.
The trial court, hearing evidence presented ore tenus, entered the following findings:
Appellant Burton C. Abel, Jr., contends that the trial court erred in not finding the complained of acts to be illegal, oppressive, or fraudulent. We disagree.
Generally, when the trial court hears ore tenus evidence, its findings based on that evidence are presumed correct and will not be disturbed on appeal unless shown to be plainly and palpably erroneous. As Abel notes, however, the ore tenus presumption of correctness has no application when the facts are undisputed. Home Indemnity Co. v. Reed Equipment Co., 381 So. 2d 45 (Ala.1980); Stiles v. Brown, 380 So. 2d 792 (Ala.1980).
The record, though, does not reveal, as Abel contends, that the facts in this case are totally undisputed. For instance, as the trial court's findings show, the value of the building owned by Forrest Realty was disputed, as was the reasonableness of the rent paid by the accounting firm. The trial court's resolution of these disputed factual issues is due the presumption of correctness afforded by the ore tenus rule.
The ultimate decision of whether to dissolve a corporation must be made by the trial court, guided by equitable principles, based on the particular facts of each case. Belcher v. Birmingham Trust National Bank, 348 F. Supp. 61 (N.D.Ala.1968). In *1072 light of these considerations, we cannot say that the trial court erred in refusing to dissolve the corporation.
We emphasize that the law in Alabama is that dissolution of a corporation is an extreme remedy and should be ordered only where the facts clearly warrant it. Phinizy v. Anniston City Land Co., 195 Ala. 656, 71 So. 469 (1916). Bearing in mind that, as Abel notes, Code 1975, § 10-2A-195, has liberalized the law regarding dissolution of corporations, we nevertheless feel that the trial court was authorized to conclude that Abel failed to prove illegality, oppressiveness, or fraud by the majority shareholders; therefore, the judgment of the trial court is due to be affirmed.
AFFIRMED.
TORBERT, C.J., and JONES, SHORES and ADAMS, JJ., concur.