Wins

Two plaintiffs—a cosmetics company and a related entity—sued GMSR’s clients, a large property developer and two other defendants.  Plaintiffs alleged fraud and misrepresentation arising from a multimillion-dollar commercial property sale in the City of Corona.

The trial court granted summary judgment against one of the plaintiffs based on a release and shortened-limitations period in the property’s purchase and sale agreement.

Before the remaining plaintiff proceeded to a jury trial, the court held a 7-day bench trial in equity to determine whether the two plaintiffs were alter egos of each other—ultimately concluding that they were.  It also rejected the plaintiffs’ unclean hands defense, which rested on their baseless fraud and misrepresentation allegations.  The trial court then entered a single judgment against both plaintiffs, and awarded defendants over $2 million in contractual attorney fees.

The Court of Appeal affirmed.  It agreed with GMSR that the court’s equitable findings, which plaintiffs never challenged on appeal, were binding on the alter-ego plaintiffs and gutted the foundation on which their fraud and misrepresentation claims depended.  The Court of Appeal’s decision also left intact the 7-figure attorney fee award.

Click here to read the Court of Appeal opinion:  SeneMan, LLC v. Corona Industrial JV, LLC (July 23, 2025, D083702) 2025 WL 2057879 [Fourth District, Division One].