Covalt owned 25 percent and High owned 75 percent of CSI, a corporation that they operated together They also entered into a partnership to build an office building that they leased to CSI Covalt resigned from CSI and went to work for a competitor When the lease on the office building expired, Cova...

Covalt and High were still both shareholders of CSI and partners in the building they ren ...

Covalt owned 25 percent and High owned 75 percent of CSI, a corporation that they operated together.

Question:

Covalt owned 25 percent and High owned 75 percent of CSI, a that they operated together. They also entered into a to build an office building that they leased to CSI. Covalt resigned from CSI and went to work for a competitor. When the lease on the office building expired, Covalt demanded that High raise CSI's rent in a new lease, from $1,850 to $2,850 per month. High signed CSI to a new lease in the building at the old rent. Covalt sued High for breach of fiduciary duty to the Who was right?
[Covalt v. High, 675 P.2d 999, Ct. App., NM (1983)]

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...