Justice Emily Pines
Cardinal Health 414 sued based on its claim that a judgment it obtained against judgment debtor US Heartcare was rendered uncollectible by a fraudulent transfer of Heartcare’s assets to Medical Diagnostic Management Services (MDMS), an entity allegedly owned and operated by the same persons who owned Heartcare. Among other things, Cardinal sought an order of attachment. Cardinal noted that in a prior landlord-tenant action, MDMS was named as an alter-ego of Heartcare. That court concluded that MDMS was Heartcare’s alter-ego, with the same office address, phone number, and serving the role previously had by Heartcareits creator. Thus, Cardinal argued MDMS was barred by the doctrine of collateral estoppel from re-litigating an issue previously determined. The court found no question that Cardinal was entitled to a judgment against MDMS as transferee of all assets of Heartcare for no consideration. Also, it ruled MDMS was collaterally estopped from arguing it was a separate entity from Heartcare. The court stated Cardinal was entitled to judgment against MDMS for the full amount of the judgment from Heartcare and a judgment ordering the turnover of all of MDMS’s assets to the amount of its judgment.