Opinion ID: 653166
Heading Depth: 4
Heading Rank: 1

Heading: corporate identity

Text: 29 The record in this case is voluminous, but it is not sufficiently developed to permit us to ascertain whether NAT fraudulently hid its identity, or whether the district court's finding to that effect was clearly erroneous. It is, however, sufficient to enable us to hold that any corporate identity fraud was discoverable by AT & T upon its exercise of reasonable diligence 3 . 30 NAT argues that the so-called shellgame by which NAT allegedly attempted to hide the fact that United Computer Systems, Inc. had terminated its involvement with UTILIS was discovered by AT & T as the result of AT & T's belated investigation into the affairs of United Computer Systems, Inc. Most, if not all, of the information used by AT & T to discover the changes in corporate identity was available to AT & T prior to or during the proceedings to confirm the arbitration award. AT & T launched an appropriate investigation only after: (1) a multimillion dollar award was rendered against it; (2) the award was confirmed; and (3) AT & T was confronted with the prospect of a second arbitration proceeding. The record leaves no doubt that AT & T, had it been motivated sufficiently, would have discovered the alleged fraud prior to the district court's judgment of confirmation. 31 The district court believed that AT & T could not have discovered the fraud because of the efforts of the lawyers and officers of NAT to pull the wool over the eyes of these youngsters who represented AT & T throughout most of the litigation. This finding is not supported by the record and is clearly erroneous. 32