Facts

Albert Kirakosian sued American Best Engineering Inc. aka Avakian Engineering Inc., Serjik Avakian, and Sevak Avakian, in connection with a contractual dispute.

PLAINTIFF'S CONTENTIONS:
In January 2007, defendant American, by and through shareholder-defendants Serjik and Sevak, allegedly entered into an agreement wherein defendants borrowed $100,000 from plaintiff. As security, defendants agreed that all its property would be used as collateral. Plaintiff thereafter performed all its duties and obligations under the agreement and promissory note. American, however, defaulted on its payments. Then, the individual defendants transferred American's assets that were held in collateral to a different business (defendant Avakian Engineering), allegedly in an effort to fraudulently hide American's assets. Plaintiff contended that Avakian Engineering, Serjik, and Sevakian were American's alter ego.

In this action, plaintiff alleged causes of action for breach of contract; fraud; conversion; common count for open book account; and common count for account stated.

DEFENDANTS' CONTENTIONS:
Defendants moved for judgment on the pleadings for failure to allege a cause of action. Defendant also asserted a usurious defense.

Result

The court agreed with the usurious defense and granted defendants' motion for judgment on the pleadings. However, the court also granted Kirakosian's request for leave to amend.