(a) When an aggrieved person obtains a final judgment in a court of competent jurisdiction against a corporation based upon the corporationâs fraud, misrepresentation, or deceit, made with intent to defraud, or obtains a criminal restitution order against an agent based upon the agent's fraud, misrepresentation, or deceit, made with intent to defraud while acting in the agentâs capacity as the corporationâs officer or director, the aggrieved person may, upon the judgment becoming final and after diligent collection efforts are made, file an application with the Secretary of State for payment from the fund, within the limitations specified in Section 2289, for the amount unpaid on the judgment that represents the awarded actual and direct loss, any awarded compensatory damages, and awarded costs to the claimant in the final judgment, excluding punitive damages. (b) The application shall be delivered in person or by certified mail to the Secretary of State not later than 18 months after the judgment has become final. (c) The application shall be made on a form prescribed by the Secretary of State and shall include each of the following: (1) The name and address of the claimant. (2) If the claimant is represented by an attorney for the application, the name, business address, and telephone number of the attorney. If the claimant is not represented by an attorney for the application, a telephone number where the claimant can be reached during regular business hours shall be included. (3) The name and address of the corporation and the agent, if any. (4) The identification of the final judgment, the amount of the claim that remains unreimbursed from any source, and an explanation of the claimâs computation. (5) A copy of a final judgment and a copy of the civil complaint and any amendments thereto upon which the judgment finding fraud, misrepresentation, or deceit, made with the intent to defraud, was made shall be deemed to satisfy compliance with the requirements prescribed in this paragraph. The claimant may also provide any additional documentation that he or she believes may help the Secretary of State in evaluating the application, including, but not limited to, evidence submitted to the court in the underlying judgment or a detailed narrative statement of facts in explanation of the allegations of the complaint upon which the underlying judgment is based. (6) If the final judgment is a criminal restitution order, the claimant shall provide the charging document and the restitution order, and if the defendant is an agent, documentation showing the defendant named in the restitution order is an agent as defined in this chapter. (7) A description of searches and inquiries conducted by or on behalf of the claimant with respect to the judgment debtorâs assets liable to be sold or applied to satisfaction of the judgment. A courtâs determination or finding of the judgment debtorâs insolvency or lack of assets to pay the claimant shall be deemed to satisfy the requirements prescribed in this paragraph. (8) Each of the following representations by the claimant: (A) That the claimant is not a spouse, registered domestic partner, or an immediate family member of an employee, officer, director, managing agent, or other principal of the corporation nor a personal representative of the spouse, registered domestic partner, or an immediate family member of an employee, officer, director, managing agent, or other principal of the corporation. (B) That the claimant has complied with all of the requirements of this section. (C) That the judgment underlying the claim meets the requirements of subdivisions (a) and (b), including all of the following: (i) That the judgment was for fraud, misrepresentation, or deceit by the corporation or the agent of the corporation, with the intent to defraud. (ii) That the judgment is unpaid in part or in whole. (iii) That the underlying judgment and debt have not been discharged in bankruptcy, or
‹ Prev All California sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.