VINCENT WILLIAMS VS. AUTO-CHLOR SYSTEM OF NORTHERN CALIFORNIA, INC., ET AL

Matter on the Law & Motion/Discovery Calendar for Thursday, August 14, 2025, line 5, 2 - DEFENDANT AUTO-CHLOR SYSTEM OF NORTHERN CALIFORNIA, INC., AUTO-CHLOR SYSTEM, LLC Motion For Sanctions Pursuant To Ccp Section 128.7

Defendants Auto-Chlor System of Northern California, Inc. and Auto-Chlor System, LLC's motion for sanctions is denied. Under California Code of Civil Procedure Section 128.7(b) and (c), the court may award sanctions if there is no demonstration that "[t]he allegations and other factual contentions have evidentiary support or, if specifically so identified, are likely to have evidentiary support after a reasonable opportunity for further investigation or discovery."

Here, prior to discovery, the allegations that Auto-Chlor System, LLC was a joint employer or alter ago were not frivolous. The companies share a website, CEO, and employee handbook. A plaintiff could reasonably bring both of these claims with this information and think it possible that discovery may yield evidence that the corporation was in fact a joint employer or alter ego.

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