Curci Investments v. BaldwinAnnotate this Case
This appeal concerned a limited liability company, JPB Investments LLC (JPBI), created and operated by respondent James Baldwin, a real estate developer. Appellant Curci Investments, LLC (Curci) sought to add JPBI as a judgment debtor on a multi-million dollar judgment it had against Baldwin personally. Curci asserted Baldwin held virtually all the interest in JPBI and controlled its actions, and Baldwin appeared to be using JPBI as a personal bank account. Curci argued, under these circumstances, it would be in the interest of justice to disregard the separate nature of JPBI and allow Curci to access JPBI’s assets to satisfy the judgment against Baldwin. Citing Postal Instant Press, Inc. v. Kaswa Corp. 162 Cal.App.4th 1510 (2008), the court denied Curci’s motion based on its belief the “reverse veil piercing,” was not available in California. On appeal, Curci asserted Postal Instant Press was distinguishable, and urged the Court of Appeal to conclude reverse veil piercing was available in California and appropriate in this case. The Court agreed Postal Instant Press was distinguishable, and concluded reverse veil piercing is possible under these circumstances. The Court reversed and remanded for the court to make a factual determination as to whether JPBI’s veil should be pierced.