- 5 - transfer of the building was in repayment of the loan. In that regard, the court held that Magna Carta was the alter ego of Victor and that transactions between Victor and Magna Carta were a nullity as a matter of law and could not be relied upon by Arthur or Edgar. It was also held that the $568,064 note assigned to the trust should be returned to Magna Carta. On April 9, 1990, the court ordered Arthur and Edgar to turn over $330,000 they had received to the receiver for Magna Carta. Arthur and Edgar appealed, and on August 30, 1993, the California appellate court affirmed the lower court. The appellate court found that Arthur and Edgar were in privity with Victor and that they were collaterally estopped from relitigating the prior holdings piercing the corporate veil and thereby nullifying alleged loan obligations owed by Magna Carta to Victor. Neither Arthur nor Edgar has returned the $136,550 or $135,550 he received from the sale of the building. They have continually contended that the amounts received were inheritances from their father. Edgar, who was a disabled fireman, had no relationship or involvement with Magna Carta before the time that he became a trustee of the trust. Edgar had been summoned to his father’s deathbed and was told that the trust was being created to transfer ownership of his father’s assets to him and his brother, Arthur. For 10 years before that time, Edgar and his father were alienated and had no communications. Edgar, at thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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