Lopez v. Escamilla
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In petitioning the trial court to amend a judgment to add an alter ego defendant, the plaintiff may proceed by either a motion in the original action, or by complaint in an independent action on the judgment.
In a previous action, plaintiff recovered a judgment for fraud, negligent misrepresentation, and breach of fiduciary duty against Magnolia Home Loans. In this case, plaintiff filed suit against defendant, alleging that defendant incorporated Magnolia Home Loans. The trial court granted defendant's motion for judgment on the pleadings based on the theory that the only proper procedure for naming a person an alter ego is by motion in the original action.
The Fifth Circuit reversed and held that it does not matter whether the petition alleging defendant is an alter ego of the corporation is labeled a complaint or a motion, or whether the petition is assigned a case number different from the underlying action. Rather, the substantive question is whether defendant is, in fact, an alter ego. Furthermore, the court held that the complaint is not barred by the statute of limitations.
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