In May 1993, Defendant opened the Cattleman's Steakhouse and Bar in Flandreau. His son, Debtor Myril J. Arch II, helped him open the business and served as its manager. According to Debtor, from the time the business opened, Debtor or his subsequently formed corporation, Myril Arch II, Inc., paid the real estate taxes on the property, kept it insured, and maintained the premises. Debtor also claims that at some point, Debtor or Myril Arch II, Inc. acquired and held the liquor license. According to Debtor, Defendant did not receive any share of the profits from the business after this date.
Debtor recalls receiving a copy shortly thereafter.
The document was then recorded in the office of the Moody County Register of Deeds on June 17, 1996. According to Debtor, the decision to record the document may have been precipitated by Defendant's pending divorce. In his 1996 tax return, Defendant represented to the Internal Revenue Service that he sold the business on June 5, 1996. In his 1996 tax return, Debtor similarly represented to the Internal Revenue Service that he purchased the business on June 5, 1996. According to Debtor, Defendant accepted this sum in satisfaction of any and all amounts owing under the agreement to sell the business.