On April 05, 2018 a
Motion,Ex Parte
was filed
involving a dispute between
Merchant Cash And Capital Llc,
and
Bronco Caballo,
Ferlo Corp.,
Lopez Fernando,
for civil
in the District Court of Los Angeles County.
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FILED
Superior Court of California
County of Los Angeles
Superior Court of California
JUN 20 2019
Sherr’ ve Officer/Clerk of Court
County of Los Angeles By. , Deputy
Department 51
MERCHANT CASH AND CAPITAL, LLC, Case No.: BC701037
Plaintiff, Hearing Date: 6/20/19
v. Trial Date: N/A
FERLO CORP., et al., RULING RE:
Defendants. Motion to Amend Judgment to add Ferchu
Corporation as an Additional Judgment Debtor,
Successor of Judgment Debtor Ferlo Corp.
under CCP § 187
Background
On July 12, 2018, Default Judgment (“Judgment”) was entered against Defendant Ferlo Corp.
(“Ferlo”) for damages based on allegations that Ferlo violated the terms of receivables purchase
agreement. Judgment was entered in the principal amount of $51,061.45 plus interest, costs, and
attorneys’ fees for a total judgment of $57,920.47 in favor of Plaintiff Merchant Cash and
Capital, LLC (“Bizfi”).
On March 22, 2019, Bizfi filed the instant motion to amend the said Judgment to add Ferchu
Corporation (“Ferchu”) as an additional judgment debtor and successor of judgment debtor Ferlo
under Code Civ. Proc. §187.
No Opposition was filed.
The Court considered the moving papers and rules as follows.
Motion to Amend Judgment Standard
Pursuant to CCP § 187, a trial court has jurisdiction to modify a judgment to add additional
judgment debtors. Section 187 grants to every court the power to use all means to carry its
jurisdiction into effect, even if those processes are not set out in the code. CCP § 187.
A successor company can be added as judgment debtor to a default judgment on a “successor
corporation” theory. Wolf Metals Inc. v. Rand Pac. Sales. Inc. (2016) 4 Cal.App.5th 698, 703.
According to that theory, when a corporation sells or transfers all of its assets to another
9 the latter is also liable for the former's debts
corporation constituting its “ ‘mere continuation,
and liabilities. Id. Generally, “ ‘California decisions holding that a corporation acquiring the
assets of another corporation is the latter's mere continuation and therefore liable for its debts
have imposed such liability only upon a showing of one or both of the following factual
1
Document Filed Date
June 20, 2019
Case Filing Date
April 05, 2018
Status
Default Judgment By Court - Before Trial 07/12/2018
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FILED Superior Court of California County of Los Angeles Superior Court of California JUN 20 2019 Sherr’ ve Officer/Clerk of Court County of Los Angeles By. , Deputy Department 51 MERCHANT CASH AND CAPITAL, LLC, Case No.: BC701037 Plaintiff, Hearing Date: 6/20/19 v. Trial Date: N/A FERLO CORP., et al., RULING RE: Defendants. Motion to Amend Judgment to add Ferchu Corporation as an Additional Judgment Debtor, Successor of Judgment Debtor Ferlo Corp. under CCP § 187 Background On July 12, 2018, Default Judgment (“Judgment”) was entered against Defendant Ferlo Corp. (“Ferlo”) for damages based on allegations that Ferlo violated the terms of receivables purchase agreement. Judgment was entered in the principal amount of $51,061.45 plus interest, costs, and attorneys’ fees for a total judgment of $57,920.47 in favor of Plaintiff Merchant Cash and Capital, LLC (“Bizfi”). On March 22, 2019, Bizfi filed the instant motion to amend the said Judgment to add Ferchu Corporation (“Ferchu”) as an additional judgment debtor and successor of judgment debtor Ferlo under Code Civ. Proc. §187. No Opposition was filed. The Court considered the moving papers and rules as follows. Motion to Amend Judgment Standard Pursuant to CCP § 187, a trial court has jurisdiction to modify a judgment to add additional judgment debtors. Section 187 grants to every court the power to use all means to carry its jurisdiction into effect, even if those processes are not set out in the code. CCP § 187. A successor company can be added as judgment debtor to a default judgment on a “successor corporation” theory. Wolf Metals Inc. v. Rand Pac. Sales. Inc. (2016) 4 Cal.App.5th 698, 703. According to that theory, when a corporation sells or transfers all of its assets to another 9 the latter is also liable for the former's debts corporation constituting its “ ‘mere continuation, and liabilities. Id. Generally, “ ‘California decisions holding that a corporation acquiring the assets of another corporation is the latter's mere continuation and therefore liable for its debts have imposed such liability only upon a showing of one or both of the following factual 1