This section contains the nature of the case and procedural background.

Timberline (P) sued Dr. Bennett (D) and others for equipment rentals. D made a general denial and alleged that the rentals were to a defacto corporation (Aero-Fabb Corp.) of which D was the incorporator, director, and shareholder. D alleged that P was estopped from denying the corporate character. D signed articles on January 22, 1970, but no certificate was issued as they were not in accord with statutes but new articles were filed and eventually on June 12, 1970 a certificate was issued. P got the verdict and D appealed.

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