Adding a Business Owner to an Existing Judgment is now very simple in California.

Adding a Business Owner to an Existing Judgment is now very simple in California.

The California Court of Appeal recently made it more practical to add a business owner to an existing judgment against a limited liability partnership, corporation, or limited liability company (LLC). In Relentless Air Racing LLC v. Airborne Turbine Ltd Partnership (Dec. 31, 2013) 2d Civil No. B244612, the appellate court reversed the trial court’s conclusion indicating that the business owners could not be added to the judgment under the alter ego theory.

The appellate court, however, found that this decision pushed towards an inequitable result as a matter of law. The plaintiff couldn’t collect the judgment from them. Therefore, the appellate court mandated adding the general and limited partners to the judgment. The business owners were held personally responsible to pay the judgment issued.


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