The Second Circuit Court of Appeals—one of the most influential appellate courts in the nation—affirmed the decision of The Eastern District Court of New York’s grant of summary judgment to our client Koon Chun Hing Kee Soy & Sauce Factory, Ltd. against Jessica Yang and related corporate entities. In this proceeding our client proved, as a matter of law, that Yang and several corporations were jointly and severally liable for a $900,000 judgment obtained over a third-party, years prior.
The Second Circuit Court of Appeals agreed that the documents and depositions obtained through discovery left no doubt that Yang and Co’s were alter egos of the judgment debtor, and that each corporate entity engaged in fraudulent conduct to hide assets which rendered them all judgment proof. This is a major victory for the client, as the award of summary judgment and the confirmatory ruling, resolved the case without the need for a trial, saving our client time and money.
The defendants raised two primary arguments on appeal, both of which were rejected:
Res Judicata – Defendants claimed the action was barred because of holdings in the prior litigation, which gave rise to the judgment in the first instance. The court disagreed, reasoning that Koon Chun’s successor liability and veil-piercing claims involved new operative facts that arose after the earlier case.
Evidentiary Challenge – Defendants argued that Koon Chun’s statement about asset transfers lacked evidentiary support. The court refused to consider this argument because it was not raised in the district court and was therefore forfeited.
The court also dismissed all remaining arguments as meritless, confirming that summary judgment was proper because there was no genuine dispute of material fact and Koon Chun was entitled to judgment as a matter of law.
Praise for the Law Offices of Peter Sverd.
Our law firm delivered an outstanding performance in this complex litigation, to attach a money judgment to other entities and persons. Attorney Sverd’s strategic framing of successor liability and veil-piercing claims were meticulously prepared and presented to the Court ensuring that summary judgment—a rare and powerful remedy—was secured and upheld on appeal. Successfully defending this judgment before the Second Circuit underscores our law firm’s exceptional skill, deep understanding of commercial litigation, and unwavering commitment to the success of our clients.