Patrick

We return to the long-running dispute regarding Alacer Corporation (Alacer), maker of the popular Emergen-C vitamin supplements. After company founder James W. “Jay” Patrick died in 2003, ample litigation ensued. Much involves Jay’s wife, plaintiff Ymelda T. Patrick, and her claim to Alacer stock held by his trust.

Plaintiff appeals from the judgment on her causes of action against Alacer, its directors, the trustees, and the trust beneficiaries. In a bifurcated declaratory relief cause of action, she asked the court to determine her community property interest in Alacer stock. The court found the Alacer stock was Jay’s separate property, but plaintiff had a community property interest in its increased value during the marriage. It awarded one-half—over $3.2 million—to her, plus prejudgment interest. The court later granted judgment on the pleadings for defendants on the remaining causes of action. It found all were based on plaintiff’s alleged community property interest in Alacer—but her interest was only in Alacer’s increased value, not the Alacer stock itself.

Plaintiff asserts four main errors. She contends the court wrongly valued Alacer at the time of Jay’s…