Judge: Mark E. Windham, Case: 21STLC07382, Date: 2023-05-22 Tentative Ruling
Case Number: 21STLC07382 Hearing Date: May 22, 2023 Dept: 26
Guerrero v. Kipp, et al.
MOTION TO AMEND JUDGMENT
TENTATIVE
RULING:
Judgment Creditor Amy Guerrero’s Motion to Amend Judgment is GRANTED. JUDGMENT
CREDITOR IS TO FILE A PROPOSED AMENDED JUDGMENT WITHIN 20 DAYS OF THIS ORDER.
ANALYSIS:
On October 12, 2021, Plaintiff Amy Guererro (“Judgment Creditor”)
filed the instant action against Defendants Mastin Kipp (“Judgment Debtor Kipp”)
and Claim Your Power, LLC (“Judgment Debtor CYP”). Default judgment was entered
against Judgment Debtors on March 25, 2022.
On February 24, 2023, Judgment Creditor filed
the instant motion to amend the judgment. No opposition has been filed to date.
Discussion
Judgment Creditor moves pursuant to Code of Civil
Procedure section 187 to add “Daily Love Media, Inc.” as an additional judgment
debtor.
“Under section 187, the trial court
is authorized to amend a judgment to add additional judgment debtors.... As a
general rule, ‘a court may amend its judgment at any time so that the judgment
will properly designate the real defendants.’.... Judgments may be amended to
add additional judgment debtors on the ground that a person or entity is the
alter ego of the original judgment debtor.... ‘Amendment of a judgment to add
an alter ego “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...
(Greenspan v. LADT, LLC
(2010) 191 Cal.App.4th 486, 508 [citing Hall, Goodhue, Haisley & Barker,
Inc. v. Marconi Conf. Center Bd. (1996) 41 Cal.App.4th 1551, 1554-1555].)
Judgment Creditor moves on the grounds that Daily
Love Media, Inc. is Judgment Debtors’ alter ego. Alter ego liability exists
when there is such “unity of interest” and ownership that the individuality or
separateness of the corporation has ceased to exist (or never existed in the
first place). (Mesler v. Bragg Management Co. (1985) 39 Cal.3d 290, 300.)
Also, “the facts of the case must be such that adherence to the “fiction” of
the corporation's “separate existence” would sanction a fraud or promote
injustice.” (Ibid.)
Here, Judgment Creditor presents evidence that Daily
Love Media, Inc. shares the same address as Judgment Debtors: 8033 Sunset
Blvd., Sute 994, West Hollywood, California. (Motion, Guerrero Decl., ¶4.) Judgment Debtor Kipp’s website states that it
is owned by Daily Love Media, Inc. (Motion, Melton Decl., Exh. 3.) Judgment
Debtor Kipp also admitted to Judgment Creditor that he maintains shell corporations to ensure
that judgments against him are unenforceable. (Motion, Guerrero Decl. at ¶6.) Judgment
Debtor Kipp was the CEO of both Judgment Debtor CYP and Daily Love Media, Inc.,
controlled all aspects of Judgment Debtor CYP and Daily Love Media, Inc., and
used his name, Judgment Debtor CYP’s name, and Daily Love Media, Inc.’s name
interchangeably. (Id. at ¶¶9-13.) This evidence demonstrates a unity of
interest between Daily Love Media, Inc. and Judgment Debtors.
Furthermore, Judgment Creditor has
been unable to collect on the judgment against Judgment Debtors. (Id. at
¶16; Melton Decl., Exh. 2.) Failing to recognize that Daily Love Media, Inc. is
an alter ego of Judgment Debtors would effectuate an injustice in this action because
the judgment continues to go uncollected.
Conclusion
Judgment Creditor Amy Guerrero’s Motion to Amend Judgment is GRANTED. JUDGMENT
CREDITOR IS TO FILE A PROPOSED AMENDED JUDGMENT WITHIN 20 DAYS OF THIS ORDER.
Moving
party to give notice.