Once a judgment is entered, the prevailing party can enforce it. Sometimes, disputes
arise over such enforcement efforts, and that can generate additional litigation and
potentially an appeal.
City of Los Angeles v. Conway (B205763) (2010)
California Court of Appeal
Second Appellate District, Division Five
Bruce represented two officers and owners in an appeal from a judgment finding
them liable for fraudulent transfer of assets from a cab company. The City of
Los Angeles had
obtained a default judgment against the company in an earlier auto accident case
and alleged
that that Bruce’s clients had diverted corporate assets to avoid payment of the
judgment. Bruce successfully reversed the judgment, with the Court of Appeal
holding that the City failed to prove any actual transfer of assets to the
defendants. The court found that the company’s liquidation and payment of
creditors did not constitute fraudulent transfers, and that the company’s
repayment of loans was legally permissible under Civil Code §§ 3439.08 and 3432.
The City’s reliance on circumstantial evidence and missing records was
insufficient to meet its burden of proof.
