California Court of Appeals, Second District, Eighth Division
APPEAL from an order of the Superior Court of Los
Angeles County No. BC524230. Rolf M. Treu, Judge.
[Copyrighted Material Omitted]
Needham Law Firm and Carlos E. Needham for Defendant
Horvitz & Levy, David S.
Ettinger, Steven S. Fleischman; Incite Law Group and Mark A. Vegas for
Plaintiff and Respondent.
Plaintiff Ironridge Global IV, Ltd., sued defendant
ScripsAmerica, Inc., to recover a debt. The parties were able to reach a
settlement, by which defendant agreed to give plaintiff shares of defendants
stock in satisfaction of the debt. The agreement also provided a mechanism
whereby plaintiff would receive additional shares if the value of defendants
stock decreased. The parties petitioned the court to enter judgment on their
stipulated settlement, and to retain jurisdiction under Code of Civil Procedure
section 664.6 to enforce the settlement. The trial court entered judgment as
requested. Plaintiff later moved ex parte to enforce the settlement, because
defendant had failed to complete a stock transfer required by its falling stock
prices. The trial court entered an order compelling defendant to issue stock to
plaintiff, and prohibiting defendant from transferring stock to any third
parties until the outstanding shares were transferred to plaintiff.
Defendant appealed, arguing that the trial court
lacked authority to restrain it from transferring shares to third parties, and
that the court could not provide injunctive relief on an ex parte basis. Since
entry of the order,
defendant has transferred millions of shares of stock to third parties and
has not issued any shares to plaintiff. Based on defendant's repeated
violations of the trial courts order, plaintiff has moved to dismiss the
appeal under the disentitlement doctrine. We agree that dismissal is the
appropriate remedy for defendants flagrant disregard for the order which is
the subject of this appeal.
On October 11, 2013, plaintiff sued defendant to
collect a debt. On November 8, 2013, the parties filed a stipulation for
settlement of plaintiffs claim, setting forth the terms of the parties
settlement, and asking the court to enter judgment in accordance with their
stipulation. The parties stipulation provided that plaintiff owned a
legitimate claim against defendant, valued at $686, 962.08, plus interest and
attorney fees. To satisfy this claim, defendant would initially issue plaintiff
8, 690, 000 shares of unrestricted and freely [tradeable] exempted common
stock in its company. The
agreement contemplated additional stock transfers to ...