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Baatz v. Arrow Bar

Supreme Court of South Dakota
452 N.W.2d 138 (1990)



Edmond and LaVella Neuroth formed the Arrow Bar, Inc. The corporation purchased the Arrow Bar business for $155,000 with a $5,000 down payment, and the Neuroths executed a promissory note personally guaranteeing the remaining $150,000. The corporation obtained financing for $145,000 toward the purchase agreement, and the Neuroths again personally guaranteed the corporate debt. Peggy and Kenny Baatz (Baatz) (plaintiffs) were injured in an automobile accident when the motorcycle they were driving was struck by a vehicle driven by Roland McBride. McBride was uninsured, and Baatz brought suit against Arrow Bar and the Neuroths (defendants). The complaint alleges that the Arrow Bar negligently served alcohol to McBride when he was already intoxicated, prior to the accident. The trial court entered summary judgment dismissing the Neuroths as individual defendants, and Baatz now appeals.

Rule of Law


Holding and Reasoning (Sabers, J.)

Dissent (Henderson, J.)

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