Judge: Mark E. Windham, Case: 23STLC07583, Date: 2024-08-05 Tentative Ruling

Case Number: 23STLC07583    Hearing Date: August 5, 2024    Dept: 26

National Commercial Recovery, Inc. v. Lindo Michoacan Corp., et al.

MOTION TO AMEND JUDGMENT

(CCP § 187)

TENTATIVE RULING:

Judgment Creditor National Commerical Recovery, Inc.’s Motion to Amend Judgment is GRANTED. JUDGMENT CREDITOR IS TO FILE A PROPOSED AMENDED JUDGMENT WITHIN 20 DAYS OF THIS ORDER.

ANALYSIS:

On November 28, 2023, Plaintiff National Commerical Recovery, Inc. (“Judgment Creditor”) filed the instant action against Defendants Lindo Michoacan Corporation (“Judgment Debtor Lindo”), Ivan Lopez (“Judgment Debtor Ivan”), and Martin Lopez (“Judgment Debtor Martin”). Default judgment was entered against Judgment Debtors on May 29, 2024.

On June 5, 2024, 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 “Lindo Michoacan Anaheim Corporation dba Lindo Michoacan 2 adba Lindo Michoacan” 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].) This reasoning also applies to successor corporations. (McClellan v. Northridge Park  Townhome Owners Association., Inc. (2001) 89 Cal.App.4th 746, 753-754.)

Judgment Creditor moves on the grounds that “Lindo Michoacan Anaheim Corporation dba Lindo Michoacan 2 adba Lindo Michoacan” is Judgment Debtor Lindo’s successor-in-interest. The relevant factors for finding the new corporation is a mere continuation of the original corporation are that upon acquiring its assets, (1) no adequate consideration was given for the original corporation’s assets and made available for meeting the claims of its unsecured creditors; or (2) one or more of the persons were officers, directors, or stockholders of both corporations. (McClellan, supra at 754, n. 4.) Here, “Lindo Michoacan Anaheim Corporation dba Lindo Michoacan 2 adba Lindo Michoacan” operates out of the same address where the subject debt was incurred, demonstrating a transfer of assets, and Judgment Debtor Martin, principal of Judgment Debtor Lindo Michoacan, is CEO and sole director of the new corporation. (Motion, Besnyl Decl., ¶3 and Exh. B.) Judgment Creditor has further determined that there have been no “Notice to Creditors of Intended Bulk Sale” recorded by either Judgment Debtor Lindo or “Lindo Michoacan Anaheim Corporation dba Lindo Michoacan 2 adba Lindo Michoacan,” which indicates that no consideration was exchanged for acquisition of Judgment Debtor Lindo’s assets.

This evidence demonstrates that “Lindo Michoacan Anaheim Corporation dba Lindo Michoacan 2 adba Lindo Michoacan” is the successor corporation of Judgment Debtor Lindo. Furthermore, if the judgment is not amended, Judgment Creditor will be unable to collect on the judgment against Judgment Debtor Lindo. (Id. at ¶4.)

Conclusion

Judgment Creditor National Commerical Recovery, Inc.’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.