Favila

The assets of Motion Graphix, Inc., were sold to Get Flipped, Inc., after the death of Motion Graphix’s founder and shareholder, Richard Corrales. The estate of Richard Corrales (Estate) through its executor, Sandra Corrales Favila, Corrales’s sister, sued Get Flipped and its founder, Raleigh Souther, who was Motion Graphix’s only other shareholder, for claims including conversion, breach of fiduciary duty and fraud (the individual action). The Estate appeals from the trial court’s order denying its petition and motion for leave to amend the complaint in the individual action to allege a conspiracy claim against Motion Graphix’s corporate counsel, Katten Muchin Rosenman LLP (Katten Muchin), and two attorneys at the Katten Muchin firm, Gavin Galimi and James Thompson (collectively attorneys).

The Estate also filed a separate derivative action against the attorneys, Souther and Get Flipped on behalf of Motion Graphix asserting claims for professional negligence, breach of fiduciary duty and unjust enrichment arising from the asset sale transaction (the derivative action). That action was dismissed as to the attorneys after the trial court sustained their demurrer and the…