City Files Complaint Against “Coronado Foursome” for Breach of Contract and Underpayment

The City of Coronado has filed a complaint against Coronado Foursome, Inc, a California Corporation and Douglas Andersen, an individual.  In 2013, the City of Coronado and Coronado Foursome entered into an agreement for services pertaining to the food and beverage concession at the Coronado Municipal Golf Course.

The City alleges that Coronado Foursome failed to provide documentation showing total gross income for 2017-18 and estimates that the amount of the underpayment currently owing from Coronado Foursome to City is the sum of approximately $80,000, plus interest and late fees.

Additional details from the complaint:

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“City is informed and believes and thereon alleges that there exists, and at all times mentioned herein there existed, a unity of interest and ownership between Coronado Foursome and Andersen, such that there was never any individuality or separateness between Coronado Foursome and Andersen and Coronado Foursome is the alter ego of Andersen in that: (1) Coronado Foursome is, and at all time herein mentioned was, so inadequately capitalized that, compared with the business to be done by Coronado Foursome and the risks of loss, its capitalization was trifling; (2) Andersen completely controlled, dominated, managed, and operated Coronado Foursome, and intermingled or transferred assets to suit Andersen’s convenience and in order to evade the payment of obligations owed to creditors of Coronado Foursome; (3) the activities and business of Coronado Foursome were carried out without observing corporate formalities, holding of directors’ or shareholders’ meetings, keeping and maintaining records and minutes of corporate proceedings and Andersen entered into personal transactions with Coronado Foursome without the approval of other directors or shareholders; or (4) Coronado Foursome is, and at all time herein mentioned was, a mere shell, instrumentality, and conduit through which Andersen carried on his business under a corporate name exactly as he had before incorporation, exercising complete control and dominance of such business to such an extent any individuality or separateness between Coronado Foursome and Andersen and Coronado Foursome does not, and at all time herein mentioned did not, exist.”

Read the entire complaint here:  City of Coronado v. Coronado Foursome

This is a developing story.

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