Mackay & Knobel Enterprises v. Teton Van

Mackay & Knobel Enterprises, a corporation, commenced an action in May of 1964, against the defendant, Teton Van Gas, Inc., to recover damages for destruction by fire of its service station in Summit County, alleging it was caused by the defendants negligently installing a butane gas tank therein without proper automatic controls or shut-off valves. A motion to dismiss that action was granted on the ground that the plaintiffs corporate charter had been suspended in October 1963, prior to the initiation of the suit. After the corporation had been reinstated in October 1966, this substantially identical suit was filed in March 1967. The corporation was again suspended in September 1967, for failure to pay its corporate franchise taxes. Thereafter the defendant again moved for dismissal on the ground that the plaintiff corporation lacked legal capacity to maintain the suit, which motion was granted, and from which the plaintiff appeals. It should be noted that the question whether plaintiff has a meritorious cause of action was not reached in the trial court, and is not before us here.