What is the test for disentitlement when a judgment debtor violates a lower court order forbidding them from transferring assets while the appeal is pending?

California, United States of America


The following excerpt is from Yaghmai v. Askari (In re Askari), B269776 (Cal. App. 2017):

The cases in which the disentitlement doctrine has been applied exhibit relatively straightforward examples of blatant disobedience. In Gwartz v. Weilert (2014) 231 Cal.App.4th 750, for example, judgment debtors appealing a large fraud verdict violated a lower court order forbidding them from transferring assets while the appeal was pending. The appellants did not deny that the transfers had taken place. (Id. at p. 752.) The court concluded that the relevant equitable principles favored dismissal of the appeal because the record showed "that defendants are seeking the benefits of an appeal while willfully disobeying the trial court's valid orders and thereby frustrating defendants' legitimate efforts to enforce the judgment." (Id. at p. 761.)

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