Lim

INTRODUCTION

Kap Moon and Leading Town SDUS, Inc. entered into an investment agreement in which Moon agreed to invest $100,000 in two of Leading Town’s retail businesses, in exchange for a 55% ownership interest and certain managerial rights in those businesses. Moon subsequently sued Kyonga Nam (the president of Leading Town), Jongju Na, Sung Joon Na, and Leading Town for breach of contract, alleging Nam and other Leading Town representatives repudiated the contract. (Moon v. Na (Super. Ct. L.A. County, 1999, No. 19STCV08038).) Moon obtained a default judgment against Nam and the other defendants in that action in the amount of $400,435. Nam later assigned her rights in the investment agreement to Young Lim, who filed this action against Moon for breach of contract. Moon filed an answer, but did not appear at trial. The trial court entered judgment in favor of Lim and against Moon in the amount of $27,000. Moon appeals, arguing the trial court erred in entering judgment against him because claim preclusion barred Lim’s complaint. Because Moon did not argue or present evidence in the trial court that claim preclusion applied, however, he forfeited the defense. Therefore, we…