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Published on: 2/25/2006
Last Visited: 9/28/2008
Katzir's Floor and Home Design, Inc., v. M-MLS.com & Peter Sommer, (2004 9th Circuit) 394 F.3d 1143
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M-MLS's president, Peter Sommer, calculated that the expense associated with defending the company outweighed the risk associated with entry of judgment against a defunct company.
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Within three months, Sommer formed a "new" company, calling it M-MLS.COM, which would conduct the same type of business as his "old" company, M-MLS.
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Sommer, himself, signed the Bill of Sale in favor of his wife's company.They thereafter transferred all of those assets to the "new" company, which then continued with business as usual, albeit under M-MLS.COM instead of M-MLS, and, without the weight of the judgment.
Mr. Horwitz, using theories of alter ego and successor liability, successfully pierced the corporate veil at the District Court level, adding Peter Sommer, individually, and his "new" company, M-MLS.COM, to the $1,600,000 judgment held against the "old" company, M-MLS, Inc.