New Trial & Equity Case
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Trial & Equity
Everyone knows that you get a jury trial with a legal issue and a judge trial with an equitable issue, right? While those rules are generally true, you might still be surprised Last month, the Fourth District Court of Appeal published a decision addressing this issue. To find out what they decided, watch the video above and read my summary of the case below.
New Trial and Equity Decision
ZF Micro Solutions, Inc. v. TAT Capital Partners, Ltd. (2022) _ Cal.App.5th _ , 2022 WL 4090879: The Court of Appeal reversed the judgment for cross-defendant entered after the trial court ordered and conducted a bench trial, not a jury trial, because the cross-complaint alleged equitable issues. Cross-complainant ZF Micro Solutions, Inc. (Solutions), the successor of deceased entity ZF Micro Devices, Inc. (Devices), alleged cross-defendant TAT Capital Partners, Ltd. (TAT) “murdered” its predecessor Devices by inserting a board member who poisoned it. The trial court decided that the claim for breach of TAT's fiduciary duty as a director was equitable rather than legal, and conducted a bench trial where it found for TAT. The Court of Appeal disagreed, concluding that the "gist" of Solutions' claim against TAT was a request for compensatory damages for destroying its predecessor corporation. There were no equities to weigh, and no other relief was requested. Under settled law concerning the nature of equitable versus legal claims, this case exhibited all the characteristics of a claim at law. (C.A. 4th, filed August 8, 2022, published September 7, 2022.)
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California Case Summaries™
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