GSF Enterprises v. Victorville Mediterranean Gardens
Plaintiff and respondent, GSF Enterprises, Inc. (Plaintiff or GSF), sued Victorville Mediterranean Gardens, LLC ("VMG"), Executive Information Services and Investment Group, LLC ("EISIG"), and the majority owner of those companies, Larry D. Gonzales (Gonzales; sometimes together, Defendants), over Defendants' defaults in repaying two notes that were collateralized by two pledge agreements for stock in VMG and EISIG. Plaintiff sought rescission and damages on fraud, breach of contract, and other theories. (Civ. Code, § 1689, subd. (b)(1), (2); all further statutory references are to the Civil Code unless noted.)
After a bench trial, Plaintiff obtained judgment in its favor on the cause of action for rescission of the notes and their related pledge agreements, due to fraud, and it also prevailed on two causes of action for declaratory relief, to establish Gonzales was the alter ego of VMG and EISIG. Judgment was entered for $250,000 collectively against Defendants.
Defendants appeal, arguing there was insufficient evidence presented to establish that Plaintiff "was actually deceived by the concealment or misrepresentation of any material fact or that [Plaintiff] actually relied upon the fraudulent representation when it consented to the funding agreements." The record is otherwise. The judgment is affirmed.
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