Same Business, Different Name.

Investor provided $75,000 toward investment and was to receive 100 percent of the net cash receipts until his investment was recouped. Unbeknownst to him, the company formed another company doing the same kind of business under a different name. The court found the corporation could not escape liability by shifting assets and changing its name. The jury awarded $3.8 million in compensatory damages and another million in punitive damages, and the appellate court affirmed. Cleveland v. Johnson   (Cal. App. Second Dist., Div. 8; October 11, 2012) 209 Cal.App.4th 1315.