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DINGUS v. FADA SERVICE CO., INC.

No. 91-CA-3052-MR.

856 S.W.2d 45 (1993)

Tom G. DINGUS and James D. Adams, Appellants, v. FADA SERVICE CO., INC.; H.C.M.C., Inc.; Pikeville Investors, Inc.; P & P Investors, Inc.; Holiday Inn, Inc.; Prestonsburg Investors, Inc.; Paintsville Investors, Inc.; H.D. Fitzpatrick, Jr.; Jack Absher; and Middleton & Reutlinger, Appellees.

Court of Appeals of Kentucky.

June 11, 1993.

Attorney(s) appearing for the Case

Shelby C. Kinkead, Jr., Bulleit, Kinkead, Irvin & Reinhardt, Lexington, Eugene C. Rice, Rice, Preston & Brown, Paintsville, for appellants.

Richard E. Fitzpatrick, Gess, Mattingly & Atchison, Lexington, Clifford B. Latta, Prestonsburg, for appellees, Fitzpatrick and Absher.

Brooks Alexander, James R. Higgins, Vonnell C. Tingle, Julie Ann Gregory, Middleton & Reutlinger, Louisville, Ralph H. Stevens, Combs & Stevens, Prestonsburg, James G. LeMaster, Greenebaum, Doll & McDonald, Lexington, for appellees.

Before DYCHE, McDONALD and WILHOIT, JJ.

McDONALD, Judge.

This appeal involves questions of deadlocked shareholders' voting, shareholders' pre-emptive rights, ultra vires acts, corporate custom, directors/shareholders' estoppel and ratification, all pursued in an action for judicial dissolution under KRS 271B.14-300(2).

Paintsville Investors, Inc. (Paintsville) was formed for the purpose of constructing and operating a nursing home under the corporate umbrella, FADA Service Co. (FADA), a holding...

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