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City, Oklahoma. All references to petitioner in this
opinion are to Mr. Don C. Montgomery.
Background
In 1980, petitioners' son-in-law, Mr. Tom Petty, was
engaged in the fuel transportation business. Mr. Petty
owned a tractor-trailer suitable for hauling fuel which he
leased to an organization in Houston, Texas, referred to as
Petroleum Wholesale. In 1982, Mr. Petty and petitioner
decided to enter the fuel transportation business together.
They formed a company called "Pet-Don" to facilitate that
activity. Pet-Don's original capital consisted of one
tractor-trailer which was contributed by petitioner.
When Mr. Petty terminated his lease agreement with
Petroleum Wholesale, he also contributed his tractor-
trailer to Pet-Don.
In March 1988, Mr. Petty purchased all of the
outstanding capital stock of a going concern called H&B
Transport, Inc. (H&B). H&B's primary business activity
consisted of transporting fuel for unrelated parties.
Mr. Petty hired a former employee of H&B to manage the
company's operations in Oklahoma City. Ill feelings soon
developed between Mr. Petty and H&B's previous owner, who
Mr. Petty felt had failed to honor an agreement to hire H&B
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