3H Corp. v. Integrated Technologies CA2/8

FACTS AND PROCEDURAL HISTORY

In March 2011 an arbitrator determined that Integrated Technologies Consulting, Inc. (ITC), and its alter ego, company president Allen Kurtz, breached their fiduciary duty to 3H Corporation by diverting money owed to 3H in connection with their joint project to design and build freeway call boxes for Los Angeles County. The arbitrator awarded 3H more than $1.2 million in compensatory damages, costs, and interest, along with punitive damages of $300,000 and $50,000 respectively against ITC and Kurtz. Pamela Reyes, who owned an equity interest in, and was an officer of, ITC, was also a party to the arbitration, but the arbitrator found she was not liable. The arbitrator also enjoined Kurtz from selling, encumbering, or transferring his house or other assets that he owned or controlled. In May 2011, the trial court issued a temporary restraining order (TRO) prohibiting Allen Kurtz and his wife Debra from selling, encumbering, or transferring their house or other assets they owned or controlled.1 On November 9, 2011, the trial court entered a default judgment confirming the arbitration award, including a permanent injunction that ordered Allen Kurtz and…