Whitney

MEMORANDUM *

Whitney, Hadley, Brelle and Kornow-Brown (collectively, Whitney) appeal from the district court’s summary judgment for Arntz. The district court had jurisdiction pursuant to 28 U.S.C. § 1332 . We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm.

Whitney argues that the district court erred in holding that there is no genuine issue of material fact that could cause Arntz to be held liable for certain debts and obligations as an alter ego of Veriscape, Inc. (Veriscape). This case is before the court under its diversity jurisdiction; therefore, the substantive law of the forum state, California, controls. See Firstmark Capital Corp. v. Hempel Fin. Corp., 859 F.2d 92 , 93 (9th Cir.1988). The district court incorrectly applied federal substantive law on alter ego liability rather than California law. Under California law, alter ego liability may be imposed where (1) “there is such a unity of interest and ownership that the individuality, or separateness, of the [defendant] and corporation has ceased;” and (2) “the facts are such that an adherence to the fiction of the separate existence of the corporation would ... sanction a fraud or promote injustice.”…