Default and new doe defendants

Asked almost 2 years ago - Carlsbad, CA

I lent money to a small company (owned and run by a family - mom, dad, son). The mom and dad guaranteed the loan. Company defaulted on payment. I sued mom, dad, and son and got entry of default against mom and dad because they fled the country. I sued the son and he has answered. I just looked over bank records and see that company money were given regularly to the daughter (whom I didn't sue because she was an officer of company).

I want to add new claim for fraudulent transfer against daughter. If I amend the complaint - does that mean the entry of default against mom and dad are no longer valid and they can come back and answer?

Attorney answers (3)

  1. Frank Wei-Hong Chen

    Contributor Level 20

    7

    Lawyers agree

    Answered . Yes, unfortunately that is correct. If you file a First Amended Complaint, you need to re-serve all defendants who haven't yet been dismissed. So that means any defaulted defendants now have a chance to file an Answer to the First Amended Complaint.

    You are better off filing a separate lawsuit for fraudulent transfer/conveyance, and letting the daughter defendant file a Notice of Related Case and Motion to Consolidate.

    Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is... more
  2. Robert Bruce Kopelson

    Contributor Level 20

    4

    Lawyers agree

    Answered . I was going to suggest a strategy, and then saw Mr. Chen's post, which beat me to it.

  3. Sagi Shaked

    Pro

    Contributor Level 13

    2

    Lawyers agree

    Answered . You could file a separate lawsuit against the new defendant (daughter) and then consolidate the cases.

Related Topics

Criminal charges for fraud

Fraud is a white collar crime in which someone deceives another to secure unlawful or unfair benefits, such as financial or political gain.

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