Arthur C. Brincat - Page 5




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          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 the              






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