Duke v. Superior Court

Duke was the founder and CEO of Skinsation. Defendants were Duke’s investors and members of the board of directors. In 2011, Callaway sued Skinsation, Duke, and defendants over a commercial lease, which Duke and defendants personally guaranteed. A judgment of $385,072. was entered, jointly and severally. Duke owned 49 percent of Skinsation stock and defendants combined owned 51 percent. In 2013, Skinsation’s outstanding capital stock had a fair market value of $1.2-$1.5 million. In May 2014, Duke and defendants unsuccessfully attempted to settle their respective contributions. The next day, defendants convened a shareholder meeting without notice to Duke and removed her as a director and terminated Duke’s employment. Defendants entered into a settlement with Callaway. For payment of $397,694, Callaway released defendants from all obligations under the judgment and assigned then all interest in the judgment. The judgment, plus accrued interest, was $444,286.56. Defendants served Duke with notice of levy on all of her Skinsation capital stock, claiming $448,029.90. Defendants purchased all of Duke’s shares at a sheriff’s sale. Duke sued. The court dismissed Duke’s cause of action for conversion. The court of appeal mandamus relief. A judgment debtor may not enforce an assignment of the judgment against a co-judgment debtor for more than the co-judgment debtor’s proportionate share of the judgment and may not enforce an assignment of the judgment against a co-judgment debtor without first seeking judicial determination of the proportionate share of the co-debtor’s liability. View "Duke v. Superior Court" on Justia Law