United States v. Standard Beauty Supply Stores, Inc.

561 F.2d 774 UNITED STATES of America, Plaintiff-Appellee, v. STANDARD BEAUTY SUPPLY STORES, INC., Standard Beauty Supplies of California, Inc., American Beauty Supply Stores, Inc., California Corporations, and Hal Linden, an Individual, Defendants- Appellants. No. 75-2258. United States Court of Appeals, Ninth Circuit. Sept. 22, 1977. Jerry L. Kay, Los Angeles, Cal. (argued), for defendants-appellants. J. Mark Waxman, Asst. U. S. Atty., Los Angeles, Cal. (argued), for plaintiff-appellee. Appeal from the United States District Court for the Central District of California. Before ELY and SNEED, Circuit Judges, and CALLISTER, * District Judge. SNEED, Circuit Judge: 1 Defendant Hal Linden appeals from the district court's holding that Linden is personally liable for a default judgment against defendant Standard Beauty Supply Stores, Inc. 1 The lower court held Linden liable for the judgment after finding that Standard Beauty was the alter ego of Linden. We remand for further consideration of the alter ego question. The district court's holding was founded on an incorrect interpretation of California law. Specifically, the lower court mistakenly assumed that Standard Beauty's failure…