Opinion ID: 1300767
Heading Depth: 1
Heading Rank: 1

Heading: action/procedural background

Text: This appeal arises from an action of Forcible Entry and Detainer which was promptly tried to the circuit court in Deuel County. [1] Plaintiffs-appellees (Andrews and Roller) prevailed in their suit over defendant-appellant (Michael Reynolds). Both parties have briefed and orally argued three legal issues. We affirm the circuit court's decision on the first issue, namely that the lease was fraudulent. Deeming this to be dispositive, we decline discussion of the other two issues. Andrews and Roller, fee owners, commenced their Forcible Entry and Detainer action on the basis that Michael Reynolds, as lessor, had possession of certain real property in Deuel County pursuant to a fraudulent lease. This written lease agreement was entered into between said Michael Reynolds and a corporation known as Reynolds Agri-Business, Incorporated (Agri-Business). Michael Reynolds is a shareholder (one share), director, and president of Agri-Business. H.G. Reynolds, father of Michael, is a director and owns ninety-nine shares of Agri-Business' one hundred shares. Agri-Business was a contract vendee in default under a contract for deed with Andrews. Negotiations between the parties, pertaining to default, deteriorated and stalemated. Andrews initiated a foreclosure action on March 4, 1986. The trial court entered a default judgment in favor of Andrews on April 9, 1986, and ordered a ten-day redemption period. A Certificate of Non-Compliance was entered by the Deuel County Clerk of Courts as no redemption was made. Prior to these foreclosure proceedings, on September 7, 1985, Michael Reynolds privately/individually entered into a lease with Agri-Business (of which he was president) and paid $7,000 unto it on February 25, 1986. Michael Reynolds was aware, at the time he entered this lease, that the corporation was in financial hardship and on the verge of default of its contract for deed with Andrews.