Judge Elaine W. Mandel, Case Number: SC128009, Date: 2024-06-13 Tentative Ruling

Judge: Elaine W. Mandel, Case: SC128009, Date: 2024-06-13 Tentative Ruling

Case Number: SC128009 Hearing Date: June 13, 2024 Dept: P

Tentative Ruling

Drake v. HCR Wealth Advisors, Inc., Case No. SC128009

Hearing date June 13, 2024

HCR Wealth Advisors Inc.’s Motion to Amend HCR Wealth Advisors’ Name

Plaintiff Drake sued his former employer HCR Wealth Advisors for violation of Cal. Lab. Code §2802 and declaratory relief to indemnify Drake for attorney’s fees he incurred as a result of an investigation of HCR and plaintiff by the SEC. HCR cross-complained for equitable indemnity, breach of duty of loyalty, breach of contract and fraud.

On December 2, 2021 judgment was entered by the court in favor of HCR on the cross-complaint for $525,000.00, with execution of the judgment stayed for one year. Drake’s complaint against HCR was dismissed with prejudice. The stay has expired.

Before the court is HCR’s unopposed motion to amend the 12/2/21 judgment that amends “HCR Wealth Advisors, Inc.” to “HCR Wealth Advisors” on all prior pleadings, as well as the entry of Judgment.

Under Cal. Code of Civ. Proc. §187, the court may amend a judgment to add judgment debtors. Curci Investments, LLC v. Baldwin (2017) 14 Cal.App.5th 214, 220. This is an equitable procedure based on the theory that the court is not amending the judgment to add a new defendant but is merely inserting the correct name of the real defendant. NEC Electronics Inc. v. Hurt (1989) 208 Cal.App.3d 772, 778.

There is no time limit for such motions; they may be made any time, so the judgment properly designates the true parties. Carolina Casualty Ins. Co. v. L.M. Ross Law Group, LLP (2012) 212 Cal.App.4th 1181, 1188. “In order to see that justice is done, great liberality is encouraged in the allowance of amendments brought pursuant to Code of Civil Procedure section 187. (Greenspan v. LADT LLC (2010) 191 Cal.App.4th 486, 508.)” Misik v. D'Arco (2011) 197 Cal.App.4th 1065, 1073, parallel citations omitted.

HCR states that it recently became aware its name on all pleadings and the judgment includes “Inc.,” which is not part of HCR’s full, legal entity name, as reflected in its amended Articles of Incorporation. Lubin Decl. ¶4, Exh. 3. The amended Articles of Incorporation displays a stamp indicating it was filed with the Secretary of State on 9/9/14. The President and Secretary of Heller Capital Resources, Financial and Insurance Services, Inc., Gregory S. Heller, certified the corporation was amending its name to “HCR WEALTH ADVISORS.”

The evidence demonstrates HCR’s correct legal entity name is “HCR Wealth Advisors,” not “HCR Wealth Advisors, Inc.” HCR Wealth Advisors is properly designated as the judgment debtor. GRANTED.