United States v. Standard Beauty Supply Stores, Inc.

SNEED, Circuit Judge:

Defendant Hal Linden appeals from the district court’s holding that Linden is per*775sonally liable for a default judgment against defendant Standard Beauty Supply Stores, Inc.1 The lower court held Linden liable for the judgment after finding that Standard Beauty was the alter ego of Linden. We remand for further consideration of the alter ego question. The district court’s holding was founded on an incorrect interpretation of California law. Specifically, the lower court mistakenly assumed that Standard Beauty’s failure to pay its California franchise taxes constituted…