Sahagun

I. INTRODUCTION

Plaintiffs and appellants, James Sahagun and others,1 comprise a class of 188

former employees of defendant and respondent, Landmark Fence Co., Inc. (Landmark).

In 2003, plaintiffs filed their original complaint against Landmark and its sole

shareholder, director, and officer, defendant and respondent Robert J. Yanik, alleging that

defendants had failed to pay plaintiffs prevailing wages on public works projects since

1999. In 2006, plaintiffs filed a first amended complaint (FAC), alleging additional

wage-related claims against both defendants; that Yanik was Landmark’s alter ego; and

that, as such, Yanik was personally liable for Landmark’s debts to plaintiffs.

In 2009, the superior court ordered this action stayed against both defendants after

Landmark filed for Chapter 11 bankruptcy protection. On April 7, 2011, the bankruptcy

court ruled that plaintiffs were “free to pursue” their alter ego claim against Yanik outside

of the bankruptcy proceedings because the alter ego claim belonged solely to plaintiffs

rather than to the bankruptcy estate or to Landmark’s unsecured creditors as a whole. But

at that time, plaintiffs did not pursue any of their…