Judge: Colin Leis, Case: BC405957, Date: 2023-10-17 Tentative Ruling
Case Number: BC405957 Hearing Date: October 17, 2023 Dept: 74
Exite Group, Inc. v. Smile World,
Inc., et al.
Motion to Amend Judgment
The
court considered the moving papers. No opposition was timely filed. (Code Civ.
Proc., § 1005 [“All papers opposing a motion […] shall be filed with the court
and a copy served on each party at least nine court days […] before the
hearing.”].)
BACKGROUND
This
action arises from a business dispute.
On
January 21, 2009, Plaintiff Exite Group, Inc. filed a complaint against Smile
World, Inc., Jin Young Kim, STK Enterprises, Inc., and JK Beauty Group., Inc.
(JK Beauty).
On
October 16, 2020, the court entered judgment under which JK Beauty, Jin Young
Kim, and others are judgment debtors.
On
September 18, 2023, Plaintiff filed this motion to amend the judgment.
LEGAL STANDARD
“When
jurisdiction is . . . conferred on a Court . . . 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.” (Code Civ. Proc., § 187.)
DISCUSSION
Plaintiff
seeks to add Gold Lush Corporation (Gold Lush) as a judgment debtor to the October 16, 2020, judgment. To that end, Plaintiff
contends existing judgment debtor JK Beauty is transferring its assets into
Gold Lush’s bank account to avoid collection efforts by Plaintiff. Under Code
of Civil Procedure section 187, a trial court has jurisdiction to modify a
judgment and add additional judgment debtors. (NEC Electronics, Inc. v. Hurt
(1989) 208 Cal.App.3d 772, 778.) Courts may amend judgments in this manner if
the proposed judgment debtor is the alter ego of an original judgment debtor. (Ibid.)
When
a corporation transfers all its assets to another corporation, the latter is
liable for the debts and liabilities of the former in certain circumstances; there
is such liability if one corporation is merely a continuation of the other. (McClellan v. Northridge Park Townhome Owners Ass’n,
Inc. (2001) 89 Cal.App.4th 746, 753; Blank v. Olcovich Sho Corp. (1937)
20 Cal.App.2d 456, 461 [“[C]orporations cannot escape liability by . . . a
shift of assets when and where it is shown that the new corporation is . . . a
continuation of the old.”].) In this context, a Plaintiff may add a judgment
debtor under Code of Civil Procedure section 187. (McClellan
v. Northridge Park Townhome Owners Ass’n, Inc. supra, 89 Cal.App.4th at p.
754.)
Here,
Plaintiff has proffered evidence that Gold Lush is a continuation of JK Beauty.
First, JK Beauty has transferred funds from its bank account to that of Gold
Lush. (Glassman Decl., ¶ 3; Ex. B.) Second, Gold Lush and JK Beauty share the
same CEO, Secretary, and CFO—namely, Jin Young Kim. (Glassman
Decl., ¶¶ 4-6; Ex. C; Ex. D.) Third, both corporations have the same
address. (Glassman Decl., ¶¶ 5-6; Ex. C; Ex. D.) Fourth, JK Beauty and Gold
Lush both manufacture cosmetics. (Glassman Decl., ¶¶ 5-6; Ex. C; Ex. D.) And
fifth, JK Beauty has provided no contrary evidence in a timely opposition.
Substantial evidence therefore supports a finding that Gold Lush is a
continuation of JK Beauty under a different name. As such, Gold Lush’s
interests have been represented in this action. (McClellan v. Northridge
Park Townhome Owners Ass’n, Inc. supra, 89 Cal.App.4th at p. 757.) Thus,
the court has grounds to amend the October 16, 2020, judgment by adding Gold
Lush as a judgment debtor.
CONCLUSION
Based
on the foregoing, the court grants Plaintiff’s motion to amend judgment.