TWIN MED v. JPH MANAGEMENT, INC.,
Respondents JPH Management, Inc., and Jeoung H. Lee (collectively JPH) obtained a judgment against plaintiff Twin Med, Inc. (INC) for costs of suit and successfully moved to amend the judgment to add appellant Twin Med, LLC (LLC) as an additional judgment debtor. LLC appeals from the amended judgment. The trial court found LLC was a mere continuation of the business of INC, the original judgment debtor, under the well established theory articulated in Ray v. Alad Corp. (1977) 19 Cal.3d 22 (Ray) and McClellan v. Northridge Park Townhome Owners Assn. (2001) 89 Cal.App.4th 746 (McClellan). LLC in essence contends that (1) the trial court abused its discretion in allowing JPH to assert the mere continuation theory for the first time in reply papers, (2) the court abused its discretion in failing to accept a declaration tendered during the hearing and (3) there was no substantial evidence that LLC gave inadequate consideration for INCs assets. Court hold that the trial court did not abuse its discretion in considering the mere continuation theory or in not admitting the declaration and that substantial evidence supports the courts finding LLC was a mere continuation of INC. Court therefore affirm the amended judgment.
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