In 1996, Robert McClellan, a licensed contractor doing business as McClellan Design and Construction, entered into a

Question:

In 1996, Robert McClellan, a licensed contractor doing business as McClellan Design and Construction, entered into a contract with Peppertree North Condominium Association, Inc., to do earthquake repair work on Peppertree’s seventy-six-unit condominium complex in Northridge, California. McClellan completed the work, but Peppertree failed to pay. In an arbitration proceeding against Peppertree to collect the amount due, McClellan was awarded $141,000, plus 10 percent interest, attorneys’ fees, and costs. McClellan filed a suit in a California state court against Peppertree to confirm the award. Meanwhile, the Peppertree board of directors filed articles of incorporation for Northridge Park Townhome Owners Association, Inc., and immediately transferred Peppertree’s authority, responsibilities, and assets to the new association. Two weeks later, the court issued a judgment against Peppertree. When McClellan learned about the new association, he filed a motion asking the court to add Northridge as a debtor to the judgment. Should the court grant the motion? Why or why not?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

Question Posted: