Mt. Whitney Farms v. Sandstone Marketing CA5

BACKGROUND

The central issue before this court is whether the trial court properly refused to apply the alter ego doctrine. Whether the business form should be ignored as an alter ego is primarily a question of fact. Therefore, the trial court’s finding will not be disturbed

2. when supported by substantial evidence. (Toho-Towa Co., Ltd v. Morgan Creek Productions, Inc. (2013) 217 Cal.App.4th 1096, 1108 (Toho-Towa).) Accordingly, we must resolve all evidentiary conflicts and draw all reasonable inferences in favor of the trial court’s decision. (Jessup Farms v. Baldwin (1983) 33 Cal.3d 639, 660.) 1. The Felger entities. a. Felger Trusts Joan Felger is the income beneficiary of two family trusts formed in 1984, her revocable trust, the A. Craig and Joan S. Felger First Share Trust and her deceased husband’s irrevocable trust, the A. Craig and Joan S. Felger Second Share Trust (Felger Trusts). Joan’s children, Warren, Forrest, Carol, Faith, Phyllis and Desiree, are contingent remainder beneficiaries of the Felger Trusts.1 Joan and Warren are cotrustees. b. Cantua Creek In 1993, Cantua Creek was formed as a general partnership. The partners are the A. Craig and Joan S. Felger…