Full title: ELI’S, INC., A NEBRASKA CORPORATION, APPELLEE AND CROSS-APPELLANT, v…
Court: Supreme Court of Nebraska
Date published: Mar 26, 1999
Facts
Western was a closely held corporation engaged in the printing business in Omaha. Prior to transfers that occurred in 1993 which are the subject of this action, all of its stock was owned by Lemen and his three children. Western Enterprises II (Western Enterprises) was a partnership, composed of the same Lemen family members, which owned the real estate upon which Western conducted its business. Lemen held a 60 percent interest in the partnership.
Before the transfers at issue, Lemen conducted Western’s operations and business affairs with the assistance of his son, William Todd Lemen. Western experienced annual operating losses beginning in 1989, requiring Lemen to make periodic loans to Western to continue its operations. Western was delinquent on its $8,000 monthly rental payments to Western Enterprises for February, March, and April 1993, and Lemen personally paid the mortgage payments of Western Enterprises during these months. Western’s accounts payable, as shown by audited reports, increased from approximately $128,872 on June 30, 1991, to $230,611 on June 30, 1992. The record also shows that for several months before April 1993, Western did not pay its creditors on a timely basis and its monthly operating losses had increased to approximately $25,000 per month.
Issue
Decision
Based upon our independent review of the issues of law raised in this appeal and our de novo review of the issues of fact, we find no error by the district court and therefore affirm its judgment.
AFFIRMED.
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