XTC Investments v. Bluenose Trading
Plaintiff XTC Investments, LLC (XTC) made a series of loans to Fortuna Investment, Inc. (Fortuna), which Sanford Gaum (Gaum) personally guaranteed. The loans were not repaid, and XTC obtained a default judgment in federal district court against Gaum and Fortuna for $612,207. XTC then initiated an action in state court (the prior action) in September 2007 against Gaum and Bluenose, asserting that Gaum created and used Bluenose to conceal his assets from creditors. After a three-day bench trial, the trial court entered judgment for XTC and against defendants for $318,551 in general damages and $318,551 in punitive damages, for a total of $637,102 plus statutory interest. (XTC Investments, LLC v. Bluenose Trading, Inc., et al. (June 21, 2011, B226104 [at pp. 2, 5, 7] [nonpub. opn.].) Gaum and Bluenose appealed, and we affirmed the judgment in its entirety. (Id. [at p. 15].)
At the time of trial of the prior action, Bluenose’s shareholders were Michael J. (Mike) Irwin, Fred Jacobson, and Nova Gold, a corporation owned entirely by Gaum. (XTC Investments, LLC, supra, B226104 [at p. 3].) Bluenose’s officers were Gaum (chief financial officer and property manager), Jacobson (president), and Irwin (secretary). (Id. [at p. 4].)
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