Kayne
Kayne v. Grande Holdings Ltd.
Opinion
Lead Opinion
Armstrong, J.
*1472 Opinion
The Grande Holdings Limited (Grande) appeals an order granting the motion of Fred Kayne and other plaintiffs (plaintiffs) for discovery sanctions in the amount of $74,809. Finding no error, we affirm.
FACTUAL AND PROCEDURAL BACKGROUND
Plaintiffs filed a lawsuit in the United States District Court for the Central District of California (Kayne v. MTC Electronic Technologies, Co., Ltd., CV-95-0488) in January 1995, in which they alleged that MTC, Grande’s subsidiary, and others violated federal and state laws by failing to disclose material facts in connection with plaintiffs’ purchase of MTC securities, among other things. In December 2005, plaintiffs obtained a “net default Partial Final Judgment” in favor of plaintiffs and against MTC in the amount of $37,562,122. In this lawsuit, plaintiffs seek to enforce this judgment, less the amount of certain settlements, against Grande. Plaintiffs allege that MTC, which ceased doing business in 2003, was Grande’s alter ego, and that Grande misused or converted MTC’s assets over a period of several years before leaving it a judgment-proof shell.