In this lawsuit over profits from the movie Crash, the trial court entered a judgment for about $12 million against the film’s principal backer, defendant Persik Productions. Plaintiffs moved to amend the judgment to add Bob Yari as an additional judgment debtor. Yari held an indirect ownership interest in Persik, which had declared bankruptcy. The trial court granted the motion, finding that Persik was Yari’s alter ego.
Yari retained Horvitz & Levy LLP to represent him on appeal from the judgment. We argued to the Court of Appeal that the plaintiffs failed to present substantial evidence to support the alter ego finding. The California Court of Appeal (Second Appellate District, Division One) agreed, finding that the record contained no evidence that an alter ego finding was necessary to avoid an unjust or inequitable result. Accordingly, the court reversed the judgment with directions to remove Yari from the judgment.
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