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New Cases of Interest - February 18, 2016
SCC Acquisitions, Inc. v. Superior Court (2015) 243 Cal.App.4th 741. This case is primarily interesting for a privacy issue that arises in it. The judgment creditor in an attempt to collect a large judgment propounded requests for production of documents to the judgment debtor and later brought a motion to compel the judgment debtor to respond further to those requests. The court of appeal held that the trial court could compel the judgment debtor to produce documents in its possession or control which related to third party entities, noting that corporations do not have a right to privacy protected by the California Constitution. The court further noted that a corporate right to privacy is a lesser right than is held by individuals and is not considered a fundamental right.
Speirs v. Bluefire Ethanol Fuels, Inc. (2015) 243 Cal.App.4th 969. This case raises an interesting fiduciary duty issue. Some warrant holders sued a company which had issued the warrants for breach of contract and declaratory relief and two of the company's officers for breach of fiduciary duty. The court held that the breach of fiduciary duty cause of action was not meritorious as a matter of law because a corporation's officers do not have a fiduciary duty to warrant holders.