In a criminal action Teitelbaum was convicted of conspiracy to commit grand theft, attempted grand theft, and the presentation and filing of false insurance claims as a result of a fake robbery of a corporation of which he was president and controlling stockholder. The corporation brought a subsequent action to recover on insurance policies for losses allegedly sustained in the same robbery. At the trial it was conceded that the corporation was Teitelbaum's alter ego. Held: The prior criminal conviction of Teitelbaum for attempt to defraud the insurer operated as a bar to the corporation's action under the policies. Teitelbaum, Furs Inc. v. Dominion Ins. Co., 25 Cal. Rptr. 559, 375 P.2d 439 (1962).
James W. Brannigan Jr.,
Collateral Estoppel - Corporation Collaterally Estopped from Relitigating Issue Adjudicated in Prior Criminal Conviction of its President (Teitelbaum Furs, Inc. v. Dominion Ins. Co., Cal. 1962),
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol1/iss1/14