TMCO LTD. v. Green Light Energy Solutions R&D Corp.

Background

TMCO Ltd. moved for permission to amend its judgment against Green Light Energy Solutions R&D Corp. (GLES Corp.) to add Alex M. Feerer and Green Light Energy Solutions, LLC (GLES, LLC) as judgment debtors. TMCO filed the motion after conducting a judgment-debtor examination of Feerer. The judgment had been entered on November 11, 2017.

TMCO initially set a briefing schedule that did not comply with the court’s local rules. It served Feerer and GLES, LLC’s agent for service of process on November 22, 2019. Neither GLES Corp. nor the non-parties filed a timely opposition or statement that they did not oppose the motion. Under Judge Westmore’s standing order, failing to file an opposition constituted consent to granting the motion.

Procedural History

On January 10, 2020, the court ordered GLES Corp. and the non-parties to file an opposition or statement of non-opposition and to explain why any opposition was late. TMCO served that order on Feerer and GLES, LLC. No opposition was filed by the deadline.

Defense counsel separately sought permission to withdraw from representing GLES Corp. The court denied that request without prejudice because withdrawal could cause injustice or delay while the motion to amend the judgment was pending. The court also noted that a corporation cannot appear in federal court without a lawyer and that Feerer was not licensed to practice law in California.

GLES Corp.’s counsel later stated that Feerer had ended the attorney-client relationship because the company was dissolving and no longer needed legal assistance. Counsel also stated that Feerer claimed not to be an officer of GLES Corp. The court observed that Feerer had attempted to act for the corporation and had terminated its relationship with counsel, which indicated that he remained in control of the corporation.

Ruling

The court granted TMCO’s motion for leave to amend the judgment as unopposed. It found that Feerer and GLES, LLC were alter egos of GLES Corp. An alter ego finding treats legally separate parties as sufficiently connected that a judgment against one may be enforced against the others. The court specifically found that Feerer operated GLES, LLC and GLES Corp. as a single enterprise, controlled the underlying arbitration and the resulting enforcement proceedings, and that failing to add him and GLES, LLC as judgment debtors would result in injustice.

The judgment was amended to add Alex Feerer individually and Green Light Energy Solutions, LLC as judgment debtors. The amended judgment was to be entered separately. The court declined to award attorney fees in connection with the motion and ordered TMCO to immediately serve the order and forthcoming amended judgment on Feerer and GLES, LLC.