The Tennessee Court of Appeals rules that a corporation may not avoid a finding of contempt or circumvent an injunction by leasing property to a third party. The trial court had found that a Carthage business was in violation of the county zoning ordinance and had enjoined the continued use of the property as a trucking terminal and ordered the removal of junk from the property. The property owner attempted to avoid the court’s order by dissolving the corporation and leasing the property to an individual who essentially continued the same operation.
In its ruling the court stated, “Carver Trucking invites this Court to participate in a game of sorts, the object of which is to continue the enjoined activities without being in technical violation of the injunction. We decline to do so.” Smith County Planning Commission v. Carver Trucking, Inc.
