Lee V. Barnes

John Lee owned several motion picture theatres in central Washington and the equipment necessary to operate them. Peter Barnes desired to buy Lee's holdings. The following transaction was entered into. Barnes organized six corporations, each of which was to operate one or more theatres in a given geographical area. The interest of each corporation was so tightly interwoven with the performance of the others under the twenty-one documents the parties executed (e.g., a default by one was a default by all) that for our present purposes we can consider them as a unit.