Yesterday our office received the good news that our client had been victorious on an appeal. Our client was added to a judgment of a corporation from 2009, after the corporation failed to respond to a complaint (default judgment). The Court of Appeal reviewed two key cases, Motores de Mexicali, S.A. v. Superior Court of Los Angeles County (1958) 51 Cal.2d 172 ("Motores"), and NEC Electronics Inc. v. Hurt (1989) 208 Cal.App.3d 772 ("NEC"). In each of the cases the plaintiffs sued corporations, but not the individual shareholders. After the defendant corporations failed to litigate the cases, the superior courts awarded the plaintiffs judgments in each case. Later, the plaintiffs sought to add the individual shareholders to the judgments without allowing the shareholders to defend...
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