Schaefers

Filed 11/18/

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

BLIZZARD ENERGY, INC., 2d Civil No. B305774 (Super. Ct. No. 17CVP-0266) Plaintiff and Respondent, (San Luis Obispo County)

v.

BERND SCHAEFERS et al.,

Defendants and Appellants.

It all started with the idea of turning old tires into fuel through pyrolysis. Whether this will work is not the issue. It did not work for respondent Blizzard Energy, Inc., which invested in a tire pyrolysis project in Kansas. A Kansas jury returned a $3.825 million fraud judgment in favor of respondent and against appellant Bernd Schaefers (Schaefers). We are not in Kansas anymore. The fraud judgment was entered in California. The instant appeal flows from the California trial court’s decision to add a judgment debtor pursuant to the “outside reverse veil piercing” doctrine. Outside reverse veil piercing differs from traditional veil piercing, which is permitted pursuant to the well-known alter ego doctrine. “‘The alter ego doctrine prevents individuals or other corporations from misusing the corporate laws by the device of a sham corporate entity…