Appellate Court Win Ends Client’s Seven Years Of Litigation

Wagenseller Law Firm wins victory in the California Court of Appeal.

Los Angeles business litigation law firm Wagenseller Law Firm won a significant victory for its client yesterday when the California Court of Appeal affirmed the dismissal of a fraudulent conveyance lawsuit by a Chinese wheel manufacturer.  This victory brings an end to over seven years of litigation.

This latest lawsuit in the Los Angeles Superior Court involved a claim that the principal shareholder of a wheel importing and distribution corporation fraudulently conveyed assets of his to third parties in an effort to defraud his creditors.

The only problem was that the principal had already been sued as the alter ego of the corporation and, after a trial and final judgment, had won on that claim.  He was therefore not a judgment debtor under California’s Uniform Fraudulent Transfer Act.

Trial attorney Laine T. Wagenseller of Wagenseller Law Firm represented both the Corporation and its President in the 2010 trial.  When the Chinese company filed this subsequent lawsuit against the principal and his relative, Mr. Wagenseller sought dismissal of the case based on the concepts of collateral estoppel and res judicata.

In December 2012 the trial court dismissed the President from the case.  After a follow up motion in early 2013, the trial court dismissed the relative as well.  This appeal by the plaintiff followed.  Mr. Wagenseller appeared for oral argument before the Court of Appeal in October of 2014.

In addressing the issues raised by the appeal, the Court of Appeal held that a trial court has inherent authority to reconsider its prior interim ruling.  It further held that the lawsuit did not state a cause of action because the company is barred from relitigating the principal’s alter ego liability.  A motion for judgment on the pleadings was therefore properly granted.

About Wagenseller Law Firm

Wagenseller Law Firm specializes in real estate and business litigation in Los Angeles. Attorney Laine T. Wagenseller founded the firm in 2004 with the goal of becoming the preeminent boutique real estate and partnership litigation firm in Los Angeles.  For more information visit www.wagensellerlaw.com.

Media Contact
Name:  Laine T. Wagenseller
Title:  Attorney
Phone:  (213) 286-0371
Email address:  ltw@wagensellerlaw.com