Header October 3, 2024 ************************************** ************************************** Effective immediately the document collections will no longer be available via the online store. We apologize for any inconvenience, but circumstances have changed to the extent that we must do this in order to protect our business operations. ************************************** ************************************** We have found another way of meeting your needs for any of the following collections. ************************************** ************************************** California discovery document collection, California divorce document collection, California Eviction Defense Document Collection, California judgment recovery document collection, California law and motion document collection, California Legal (formerly Super) Document Collection, Federal legal document collection, Platinum sample legal document collection ************************************** ************************************** Please contact us if you have a need for one or more of these document collections. You can purchase these collections directly from us by contacting us at burman-enterprises@sbcglobal.net. ************************************** ************************************** Important changes have been made to our 30-day Money Back Guarantee. Please review or Refund Policy. ************************************** ************************************** Here are two one-time use codes that you may use to save on your next document purchases from us from now until 12a PT, on Dec 11, 2024. ************************************** Save 25% off any purchase of $95 or more to qualify with this code, YSDSWEWAQV0Y. ************************************** And, Save 20% off any purchase with no minimum requirement to qualify with this code, G4Y686CX74HP. ************************************** Yes, you may use both discount codes, but they must be on separate orders. ************************************** **************************************

Adding an alter ego as a judgment debtor in California

by Stan Burman

Adding an alter ego as a judgment debtor in California is the topic of this blog post.

The statutory authorization for adding an alter ego as a judgment debtor in California is found in  Code of Civil Procedure section 187. 

Although the alter ego liability theory is the most common reason to request amendment of a judgment a judgment creditor can also use the successor corporation liability theory in appropriate situations.

The alter ego theory basically argues that an identity exists between the new party and the original party, whose participation in the trial leading to the judgment represented the newly added party.

Amending a judgment to add a judgment debtor is a powerful tool if used in the appropriate types of situations. 

One very good example of when this procedure is very effective is a situation where a corporation such as a professional corporation is owned by one person who then proceeds to drain the assets of the corporation by alleging they are “loan repayments” to the individual and sole shareholder before dissolving the corporation. Then under an almost identical name they continue to practice their profession at the same location as the dissolved professional corporation.   When examined under oath at a judgment debtor examination they fail to produce any corporate minutes or resolutions regarding the alleged loans.

Another example of a good situation using the successor corporation theory would be that of a successor corporation that continues the same exact business as the predecessor except for the name.

Code of Civil Procedure section 187 states that, “When jurisdiction is, by the Constitution or this Code, or by any other statute, conferred on a Court or judicial officer, all the means necessary to carry it into effect are also given; and in the exercise of this jurisdiction, if the course of proceeding be not specifically pointed out by this Code or the statute, any suitable process or mode of proceeding may be adopted which may appear most conformable to the spirit of this Code.”

Numerous decisions of the California Courts of Appeal have stated that Code of Civil Procedure section 187 allows a trial court to amend a judgment to add judgment debtors.   The rationale used is that amending a judgment to add an alter ego as a judgment debtor does not result in the addition of a new defendant but merely inserts the correct name of the real defendant.

And a recent decision from a California Court of Appeal states that great liberality is encouraged in the allowance of amendments brought pursuant to Code of Civil Procedure section 187.  That same Court also stated there is no requirement for any evidentiary hearing, a noticed motion is all that is required.

Attorneys or parties in California who would like to view a portion of a sample 12 page motion to amend a judgment containing a memorandum of points and authorities with citations to case law and statutory authority, sample declaration and proof of service sold by the author can use the link shown below.

Sample Motion to Amend Judgment to Add Alter Ego as Judgment Debtor in California by Stan Burman on Scribd

 

Attorneys or parties in California that would like to view all of the sample documents for judgment recovery created by the author of this blog post can use the link shown below.

https://www.scribd.com/collections/15607154/California-judgment-recovery-document-collection

The author of this blog post, Stan Burman, is a freelance paralegal who has worked in California and Federal litigation since 1995 and has created over 300 sample legal documents for sale.

*Do you want to use this article on your website, blog or e-zine? You can, as long as you include this blurb with it: “Stan Burman is the author of over 300 sample legal documents for California and Federal litigation and is the author of a free weekly legal newsletter. You can receive 10 free gifts just for subscribing. Just visit freeweeklylegalnewsletter.gr8.com/ for more information.  

Follow the author on Twitter at: https://twitter.com/LegalDocsPro

DISCLAIMER:

Please note that the author of this blog post, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this blog post is NOT intended to constitute legal advice.

The materials and information contained in this blog post have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this blog post is not intended to create, and receipt does not constitute, any business relationship between the author and any readers. Readers should not act upon this information without seeking professional counsel.

Back to Blog from LegalDocsPro