Schlecht v. Equitable Builders, Inc.

In August 1971 plaintiffs, who are the trustees of four employee benefit funds, obtained four separate judgments against defendant Equitable Builders, Inc. for unpaid contributions to the benefit funds. Equitable is a wholly-owned subsidiary of the defendant A.E.C.G., dba Gem Building Components, Ltd., a California corporation (hereinafter Gem). ①

In this suit plaintiffs sought a decree requiring Gem to pay the four judgments obtained by plaintiffs against Equitable. The plaintiffs alleged that Equitable was a solvent corporation holding assets sufficient to pay its obligations to the…