Optronic Technologies, Inc. v. Celestron Acquisition, LLC

INTRODUCTION

In a previous litigation, appellant Optronic Technologies, Inc. d/b/a Orion Telescopes & Binoculars (Orion) sued Chinese company Ningbo Sunny Electronic Co., Ltd. in federal court in an antitrust action. The federal court entered a judgment in favor of Orion for over $50 million. In a separate lawsuit that is the basis for this appeal, Orion sued Celestron Acquisition, LLC for fraudulent transfer under the Uniform Voidable Transactions Act (UVTA) (Civil Code, § 3439 et seq. 1), and tortious interference with prospective economic advantage. Orion alleged that after the federal court entered judgment against Ningbo Sunny, but before Orion was permitted to collect on the judgment, Celestron and Ningbo Sunny arranged to have Celestron pay an approximately $4.2 million debt to Ningbo Sunny that was not yet due. By doing so, Celestron undermined Orion’s ability to collect on its judgment by eliminating a significant accounts receivable asset, and by sending the funds to China, effectively putting them out of Orion’s reach. Celestron demurred to Orion’s complaint, and the trial court sustained the demurrer without leave to amend. Orion appealed. We reverse in part. Although…