Johnson v. McDonald

In Johnson v. McDonald, 197 Ariz. 155, 157 P2, 3 P.3d 1075, 1077 (App. 1999), a contractor and a real property owner formed a corporation to develop property. Id. at 411, 621 P.2d at 917. Eventually, a disagreement arose and a lawsuit was filed. Id. The Court concluded that "because the corporation was closely held by only the plaintiffs and defendants, they operated more as partners than in strict compliance with the corporate form." Id. at 412, 621 P.2d at 918. Accordingly, the court concluded, the plaintiffs had standing to sue both derivatively and directly.