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Individuals Added As Judgment Debtors For Debt Of A Partnership.

February 19, 2014 by Leave a Comment

judgment debtorsPlaintiff obtained a money judgment against a limited partnership.  Unable to collect, plaintiff moved to add two natural persons as judgment debtors. The court found the natural persons were the alter egos of defendant. The trial court, however, denied the motion to add the natural persons as judgment debtors.  In reversing, the appellate court noted that “the [two natural persons] used [defendant’s] funds to pay their personal debts,” and concluded: “Given the trial court’s finding that the [two natural persons and defendant] are one and the same, it would be inequitable as a matter of law to preclude [plaintiff] from collecting its judgment by treating [defendant] as a separate entity.”  The court ordered the judgment to be amended to add the two natural persons as judgment debtors.  (Relentless Air Racing, LLC v. Airborne Turbine LTD. Partnership  (Cal. App. Second Dist., Div. 6; December 31, 2013) 222 Cal.App.4th 811, [166 Cal.Rptr.3d 421].)

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