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services to the business. It is not clear from the record
whether they opened a bank account specifically for the
business or whether they used an existing account, but it
is clear that both of their signatures were required on
checks drawn on the account.
The operation of the animal farm business took place
primarily on land owned by James and his wife. Darwin also
owned land that was farmed for the benefit of the animal
farm business. In 1972, the brothers agreed that the
business should pay rent for the use of each brother's
personal land by the business. While Darwin often received
his land rents, James frequently deferred his land rents
until the business had the funds available to pay him.
In addition to using their land for business purposes,
each brother occasionally made expenditures for the
business with his own funds. Except for the reimbursement
of some business expenses and the payment of land rents,
neither brother received a distribution from the animal
farm business. All profits were reinvested in the
business.
In 1986, the brothers' relationship became
acrimonious. James evicted Darwin from the business and
prohibited him from coming onto the business premises.
After his eviction, Darwin did not participate in the
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Last modified: May 25, 2011