Cal’s Yolanda Case Stops Corp Defendants From Hiding Judgment Funds

Kids, right? So cute and yet not so great at dispute resolution from the very beginning. But great to illustrate a recent court case. So let’s say two kids are playing. One, let’s call her Yolanda, wins a dispute over where to park her imaginary cars and the other kid, let’s call him, Lando, (because Land-lord would just be too obvious), has to pay up.

So Lando owes Yolanda some damages and clever little Lando tells her that he actually doesn’t have the money owed, but secretly Lando is hiding some of his money behind his back so Yolanda can’t get it. I know, so unfair.  …And yet, it happens.

This was the case In Yolanda’s, Inc. v. Kahl & Goveia Commercial Real Estate and there was a lot of legal stuff going on. Trial, appeals, maybe some long lunches, backrubs, who really knows?

According to a recent Lexology story about this case, “The immediate effect of Yolanda’s decision will be on prevailing plaintiffs who are faced with enforcing judgments against corporate defendants who create complex business structures and agency relationships in order to shelter their assets. In such cases, the door may be open for the examination of each of the judgment debtor’s affiliates and agents to determine if there was any attempt to conceal assets from the judgment creditor. In practice, the information the judgment creditor in Yolanda’s obtained concerning the transfer of assets from the management company to the judgment debtor’s principal once again shows the vital importance of leaving no stone unturned in the search for assets which might be used to satisfy a judgment.”

So that means, “no creating complex business structures to hide judgment monies or the court is gonna punish you — hard.”  And no take-backsies either!

Disputes are sometimes just like child’s play and big grown-up people can do and say some things you might not hear outside of a full-blown temper tantrum. But when you’ve got quality representation on YOUR case from a certified sitter and tantrum-fixer like Dean Sperling, you know you’re gonna have your matter resolved with YOUR best interests in mind.

More on the case:

California’s Second District Court of Appeal Reaffirms the State’s Long-Standing Public Policy to Allow Robust Discovery When Seeking Assets Which Might Be Used to Satisfy a Judgment 

http://www.lexology.com/library/detail.aspx?g=8d9bc759-acd4-4139-96cb-16c207c80fac