Palm Valley Homeowners Ass'n v. Design MTC
California Court of Appeal
1Opinion of the Court
Opinion
WARD, J.
Appellant law firm Edwards, Sooy & Byron (the firm) appeals after the trial court imposed sanctions upon it for asserted bad faith acts and discovery abuses in the underlying construction defect litigation. The basis for the imposition of sanctions was that the firm pursued litigation activities on behalf of its client, even after the firm knew that the client was a suspended corporation.
The firm contends that the trial court abused its discretion in imposing sanctions: The rule is clear that a corporation suspended for nonpayment of taxes may not defend itself in litigation.…
2Cases cited2 opinions
- 20th Century Insurance v. Tak Hung ChoongCalifornia Court of Appeal · 2000
- Signal Data Processing, Inc. v. Rex Humbard FoundationOhio Court of Appeals · 1994
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- Leasequip, Inc. v. DapeerCalifornia Court of Appeal · 2002
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