Fotouhi

Phillips, Spallas & Angstadt, LLP v. Fotouhi

Good Law
128 Cal. Rptr. 3d 320·197 Cal. App. 4th 1132·2011 Cal. App. LEXIS 979·2011 D.A.R. 11
Court of Appeal of CaliforniaJune 28, 2011No. A129047California4,646 words

Opinion

Lead Opinion

Bruiniers, J.

A law firm obtained a $2.4 million judgment against one of its former partners, defendant Shahab E. Fotouhi, and, in an effort to collect the judgment, sought court orders (1) charging Fotouhi’s interest in his new law firm, Fotouhi, Epps, Hillger & Gilroy, LLP (the Partnership) (Code Civ. Proc., § 708.310; Corp. Code, § 16504, subd. (a)); (2) extending the order charging his partnership interest to a corporation it contends is a “mere continuation” of the Partnership formed “to frustrate attempts to collect on the judgment . . . ,” Fotouhi, Epps, Hillger & Gilroy, PC. (the Corporation); and (3) adding both the Partnership and the Corporation to the judgment against Fotouhi as his alter egos. The superior court issued a charging order against both the Partnership and the Corporation, directing each to pay 15 percent of its monthly net revenues toward the judgment until it is satisfied. The superior court declined to find the Partnership and the Corporation to be Fotouhi’s alter egos.

*1135 Fotouhi, the Partnership, and the Corporation (collectively, defendants) appeal. They contend the court erred in (1) issuing a charging order against a corporation; (2) relying on a…

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