On 11/26/2008 GLENN HIBLER filed a Contract - Other Contract lawsuit against ARLINGTON FORBES, EL AL . This case was filed in Los Angeles County Superior Courts, Stanley Mosk Courthouse located in Los Angeles, California. The Judges overseeing this case are CESAR C. SARMIENTO, ELIZABETH A. GRIMES and NANCY L. NEWMAN. The case status is Disposed - Dismissed.
****0781
11/26/2008
Disposed - Dismissed
Los Angeles County Superior Courts
Stanley Mosk Courthouse
Los Angeles, California
CESAR C. SARMIENTO
ELIZABETH A. GRIMES
NANCY L. NEWMAN
HIBLER GLENN
JOHNSON FORBES JACQUELINE
BANK OF AMERICA
FORBES ARLINGTON
CANVAS INC.
D. JOSHUA STAUB
STAUB D. JOSHUA
BURKE YVONNE B. ESQ.
TEST PARTY FOR TRUST CONVERSION
LEONARDO MARK J.
MYERS WIDDERS GIBSON JONES & SCHNEIDER
KING STEPHEN A.
II JAMES A. BRYANT
JONES STEPHEN F
JAMES A. BRYANT II
9/24/2018: Reply - IN SUPPORT OF APPLICATION
10/5/2018: Minute Order - (Legacy Event Type: Motion -order 1: Judgment Debtors' Motio...)
11/22/2019: Motion to Amend Judgment
11/25/2019: Proof of Personal Service
12/11/2019: Notice of Case Reassignment and Order for Plaintiff to Give Notice
12/16/2019: Opposition - OPPOSITION OF CARI ANN POTTS IN OPPOSITION TO EX PARTE APPLICATION FOR AN ORDER TO CONTINUE THE HEARING ON PLAINTIFF'S MOTION TO AMEND JUDGMENT TO ADD SUCCESSOR ENTITY AS JUDGMENT DEBTOR
12/16/2019: Ex Parte Application - EX PARTE APPLICATION FOR AN ORDER TO CONTINUE THE HEARING PLAINTIFF'S MOTION TO AMEND JUDGMENT TO ADD SUCCESSOR ENTITY AS JUDGEMENT DEBTOR
12/17/2019: Minute Order - MINUTE ORDER (DEFENDANTS ARLINGTON FORBES AND JAQUELINE FORBES' EX PARTE AP...)
12/23/2019: Notice - NOTICE NOTICE OF CASE REASSIGNMENT AND ORDER FOR PLAINTIFF TO GIVE NOTICE
1/22/2020: Declaration - DECLARATION OF ARLINGTON FORBES IN SUPPORT OF OPPOSITION TO MOTION TO AMEND JUDGMENT
1/22/2020: Opposition - OPPOSITION TO MOTION TO AMEND JUDGMENT TO ADD SUCCESSOR ENTITY AS JUDGMENT DEBTOR
1/24/2020: Reply - REPLY REPLY TO OPPOSITION TO MOTION TO AMEND JUDGMENT TO ADD SUCCESSOR ENTITY AS JUDGMENT DEBTOR; DECLARATION OF MICHAEL S. MARTIN
1/27/2020: Reply - REPLY SUR-REPLY TO OPPOSITION TO MOTION TO AMEND JUDGMENT TO ADD SUCCESSOR ENTITY AS JUDGMENT DEBTOR; DECLARATION OF MICHAEL S. MARTIN
1/31/2020: Minute Order - MINUTE ORDER (JUDGMENT CREDITOR GLENN HIBLER'S MOTION TO AMEND JUDGMENT TO ...)
2/3/2020: Minute Order - MINUTE ORDER (RULING ON SUBMITTED MATTER)
2/3/2020: Certificate of Mailing for - CERTIFICATE OF MAILING FOR (RULING ON SUBMITTED MATTER) OF 02/03/2020
Docketat 1:30 PM in Department P; Ruling on Submitted Matter
DocketMinute Order ( (Ruling on Submitted Matter)); Filed by Clerk
DocketCertificate of Mailing for ((Ruling on Submitted Matter) of 02/03/2020); Filed by Clerk
Docketat 09:00 AM in Department P; Hearing on Motion to Amend Judgment - Held - Taken under Submission
DocketMinute Order ( (Judgment Creditor Glenn Hibler's Motion to Amend Judgment to ...)); Filed by Clerk
DocketReply (Sur-Reply to Opposition to Motion to Amend Judgment to add Successor Entity as Judgment Debtor; Declaration of Michael S. Martin); Filed by GLENN HIBLER (Plaintiff)
DocketReply (Reply to Opposition to Motion to Amend Judgment to Add Successor Entity as Judgment Debtor; Declaration of Michael S. Martin); Filed by GLENN HIBLER (Plaintiff)
DocketOpposition (TO MOTION TO AMEND JUDGMENT TO ADD SUCCESSOR ENTITY AS JUDGMENT DEBTOR); Filed by ARLINGTON FORBES (Defendant); JACQUELINE JOHNSON FORBES (Defendant); CANVAS, INC. (Defendant)
DocketDeclaration (of Arlington Forbes in Support of Opposition to Motion to Amend Judgment); Filed by ARLINGTON FORBES (Defendant); JACQUELINE JOHNSON FORBES (Defendant); CANVAS, INC. (Defendant)
DocketNotice (Notice of Case Reassignment and Order for Plaintiff to give Notice); Filed by GLENN HIBLER (Plaintiff)
DocketNotice of Hearing on Demurrer (TO PLAINTIFF'S COMPLAINT FOR DAMAGES. ); Filed by Attorney for Defendant
DocketNotice of Case Reassignment and Order for Plaintiff to Give Notice; Filed by Clerk
DocketNotice-Case Reassignment and Order; Filed by Clerk
DocketProof-Service/Summons; Filed by Attorney for Plaintiff
DocketProof-Service/Summons; Filed by GLENN HIBLER (Plaintiff)
DocketProof-Service/Summons; Filed by GLENN HIBLER (Plaintiff)
DocketProof-Service/Summons; Filed by Attorney for Plaintiff
DocketProof-Service/Summons; Filed by GLENN HIBLER (Plaintiff)
DocketComplaint Filed (COMPLAINT FILED ); Filed by Attorney for Plaintiff
DocketComplaint; Filed by GLENN HIBLER (Plaintiff)
Case Number: SC100781 Hearing Date: January 31, 2020 Dept: P
Tentative Ruling
Glenn Hibler v. Arlington Forbes, et al. Case No. SC100781
Hearing Date: January 31, 2019
Judgment Creditor Glen Hibler’s Motion to Amend Judgment (CCP 187)
Judgment creditor Hibler obtained a judgment against defendant/judgment debtor Canvas, Inc. on November 16, 2010. Canvas, Inc. (“Inc.”) filed for bankruptcy on November 30, 2010, which closed without a discharge in March 2011. Creditor alleges Canvas Art (“Art”) – a business formed at approximately the same time Canvas, Inc. declared bankruptcy – is Inc.’s successor in interest and/or alter ego. Judgment creditor moves to amend the judgment to add Art as a debtor under Cal. Code of Civ. Proc. §187.
Courts are authorized to amend a judgment to add an additional judgment debtor under §187 if the added entity is the alter ego of the original judgment debtor. Hall, Goodhue, Haisley & Barker, Inc. v. Marconi Conf. Center Bd. (1996) 41 Cal.App.4th 1551, 1555. Such a procedure is “an appropriate and complete method by which to bind new . . . defendants where it can be demonstrated that in their capacity as alter ego of the corporation they in fact had control of the previous litigation, and thus were virtually represented in the lawsuit.” Carr v. Barnabey’s Hotel Corp. (1994) 23 Cal.App.4th 14, 22, emphasis added.
Additionally, when a new corporation is “in reality, but a continuation of the old,” a plaintiff may hold the new corporation liable for the old corporation’s debts via a motion to amend a judgment under §187 if plaintiff shows the second corporation purchased or received all of the first corporation’s assets but did not pay the first corporation’s debts. Ortiz v. South Bend Lathe (1975) 46 Cal.App.3d 842, 846, McClellan v. Northridge Park Townhome Owners Ass’n., Inc. (2001) 89 Cal.App.4th 746, 754.
Plaintiff presents evidence that Art is Inc.’s successor or alter ego: Art was incorporated one month after Inc.’s bankruptcy filing; Art operates in the same space as Inc.; Arlington and Jacqueline Forbes were Inc.’s president and treasurer; they are Art’s sole shareholders; and both are high end retailers of clothing, art, and jewelry. Martin Decl. ¶¶4-11.
Judgment debtors argue Inc. and Art are two different businesses with different brand identities and business models. Debtors argue Inc. sold apparel available in other stores, while Art sells designer apparel, including its own fashion line. Opp. at pgs. 5-6. Additionally, defendants argue Art did not acquire Inc.’s assets. Opp. at pg. 6.
Creditor argues the opposition should be disregarded because it was untimely and not served. The opposition was due January 17, 2020 and filed January 22, 2020 and contained no proof of service.
Even if the court ignores the opposition, the motion fails, as it does not establish required elements of alter ego or successor liability. To amend a judgment under a “mere continuation” theory, the judgment creditor must establish the new corporation purchased or received all the original corporation’s assets. See McClellan, supra, 89 Cal.App.4th at 754. Creditor does not allege Art acquired all Inc.’s assets. Additionally, creditor fails to establish Art actually “had control of the previous litigation, and thus [was] virtually represented in the lawsuit.” Absent contemporaneous control during the original litigation, a judgment cannot be amended to add an alter ego. Motion DENIED.