Harvey N. Freidson, et al. v. Biller Firth-Smith and Archibald, et al.
Published: May 11, 2002 | Result Date: Mar. 8, 2002 | Filing Date: Jan. 1, 1900 |Case number: 97A381266F Bench Decision – $4,067,060
Judge
Court
Clark County District, Nevada
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Rodney S. Conant
(technical)
Facts
The plaintiffs instituted the action against a third party, Adama Land Development Corp., in an attempt to amend
an existing judgment by holding Adama liable as the reverse alter ego of judgment debtor Michael Bash. In
March 1997, the plaintiffs entered a stipulation for entry of judgment against Michael Bash and his son Jeremy
Bash in the amount of $3.2 million.
The judgment related to a failed real estate investment run by the BashesÆ in the amount of approximately $13
million. This investment was run by the Bashes under the name of West Kern Corp. in Bakersfield. After entry
of the California judgment, and in or about November 1997, the judgment was domesticated in Nevada.
In October 2001, the plaintiffs brought a motion to hold Adama liable as the reverse alter ego of Michael Bash.
Adama opposed the motion arguing that the plaintiffs could not proceed by motion but instead had to file a
new action against Adama.
The court disagreed and granted the motion as to the procedural argument. However, the court did not grant
judgment against Adama but rather required that the plaintiffs proceed by way of an evidentiary hearing in
order to demonstrate that Adama was the reverse alter ego of Michael Bash.
The evidentiary hearing took place on Feb. 14, 15 and 19, 2002. At the conclusion of the hearing, the court
found that even though Zoli Ahronoviz was the purported shareholder of Adama, Michael Bash operated and
controlled Adama.
The court found that AdamaÆs own balance sheets showed monies paid to Michael Bash as "ownerÆs draw."
Michael Bash withdrew $1.7 million from Adama on his own behalf and that of his children.
Michael Bash admitted under oath that monies were paid by Adama to his children and
for his expenses as a way to avoid his creditors and his childrenÆs creditors.
Other Information
Shortly after the entry of judgment, the plaintiffs sought to have a receiver appointed for Adama. The day before that motion was set to be heard on March 21, 2002, Adama filed for bankruptcy.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390