Amay's Bakery & Noodle Co. v. Hom CA2/8

FACTS

General Background In the 1960’s, Kee Hem Hom (not a party to the current appeal) started a Chinese food products business. In 1968, Kee Hom incorporated the business as Amay’s Bakery & Noodle Co., Inc. In 1971, Kee Hom sold 50 percent of Amay’s stock to his son, Jim Hom, the individually named party in the current appeal. In 1980, Kee Hom retired from Amay, but retained his 50 percent ownership interest in the corporation. Jim Hom thereafter took “complete control” of Amay’s day- to-day operations; he also acted as Amay’s president, as well as chairman of the board. At some time not ascertainable from the record, Jim Hom’s son, Carson Hom, became involved in Amay. By the early 2000’s, Carson Hom was Amay’s corporate secretary.

1 Carson Hom is not a party to the current appeal. Amay named Carson Hom as a defendant in Amay’s current case; he defaulted on Amay’s complaint.

2 The First Lawsuit In 2001, Kee Hom, as a 50 percent owner of Amay, filed an action against Jim Hom (and Amay, as a nominal defendant).2 Kee Hom’s lawsuit alleged that Jim Hom, acting on his own and in concert with others, had embezzled large sums of money from Amay. In October 2003, Amay removed Jim…