Justice Elizabeth Emerson
Rossiello and Divine Media Group (DMG) entered into an agreement to create a film on Rossiello’s script that she would finance and DMG would produce. She claimed she gave DMG $328,000, alleging none of it was used to produce the film, and was never returned. Rossiello sought to recover damages for conversion, among other things. Stamou, a 50 percent owner of DMG, and its only employee, filed for bankruptcy. Under a stipulation, the parties agreed to permit the Bankruptcy Court to determine if DMG’s corporate veil should be pierced, and if Stamou should be held personally liable for DMG’s debt to Rossiello. The court found DMG converted Rossiello’s funds, piercing the corporate veil to hold Stamou personally liable for DMG’s obligations to her. Rossiello sought partial summary judgment against Stamou and DMG. This court found while DMG was not a party to the bankruptcy court action, it was in privity with Stamou. Thus, as an issue that was decisive of the present action was previously decided, and Stamou had a full and fair opportunity to contest that determination, the court ruled collateral estoppel applied to Rossiello’s conversion claim, granting summary judgment against DMG on liability. Yet, questions of fact on damages must be determined at trial.
