There are no published California appellate decisions imposing successor liability on a corporate entity whose predecessor incurred a judgment arising from a failure to pay wages. We therefore crossed our fingers when we moved to modify the judgment in Torres v. International Food Bazaar, Inc.
Our client was a former employee of a local grocery store who had gotten a judgment for wages, penalties and interest after filing a claim with the California Labor Commissioner. His previous lawyers could not collect the judgment (roughly $75,000) other than $5,000 in a bank levy, because the store was “sold” from the parent/owners to their sons, who then claimed it was a “new” business. (Even though it was still a grocery store, doing business at the same location, with the same employees, and using part of the “old” business name).
The “new” owners paid the judgment, plus interest, plus attorney’s fees after Rousso & Jackel’s motion to modify the judgment (adding the “new owners” as judgment debtors) was granted. The court essentially agreed that the “old” and “new” businesses were one and the same.
