WESTLAND CAPITOL CORP. v. LUCHT ENGINEERING

No. 51462.

308 N.W.2d 709 (1981)

WESTLAND CAPITOL CORPORATION, et al., Respondents, v. LUCHT ENGINEERING INC., et al., Appellants.

Supreme Court of Minnesota.

July 24, 1981.


Attorney(s) appearing for the Case

Joe A. Walters, Frederick W. Morris, O'Connor & Hannan, Minneapolis, for appellants.

Gray, Plant, Mooty, Mooty & Bennett, Minneapolis, for respondents.

Considered and decided by the court en banc without oral argument.


SIMONETT, Justice.

Two investors in a close corporation went to court to enforce a restriction in their loan agreement which prohibited company purchase of any fixed assets, here an airplane, costing over $25,000 annually. The district court held the prohibition to be enforceable. The corporation and its president appeal. We affirm.

Orren Lucht incorporated his photofinishing equipment business in 1971. By 1975 his company, Lucht Engineering, Inc., was seriously...

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