LIS PENDENS (“A SUIT PENDING”) AND THE PERILS OF NOT MEETING THE “REAL PROPERTY CLAIM” REQUIREMENT
Bankruptcy,Landlord & Tenant,Immigration,Trust & Estate,Mediation,Environmental,Tax,Uncategorized,Lawyers and Attorneys,Writs & Appeals,Business Transactions,News,Construction,Real Estate,Personal Injury,Labor & Employment,Media & First Amendment,Business,State Bar,Litigation
May 11, 2021
Shhh…Quiet, Title! When “Ancient” Mortgages or Deeds of Trust Come Back to Haunt You
Landlord & Tenant,Immigration,Trust & Estate,Mediation,Environmental,Uncategorized,Tax,Bankruptcy,Lawyers and Attorneys,Writs & Appeals,Business Transactions,News,Construction,Real Estate,Personal Injury,Labor & Employment,Media & First Amendment,Business,State Bar,Litigation
May 11, 2021
New California Minimum Wage Effect On Split Shift Employees
January 15, 2016
Split Shift Employees and New California Minimum Wage
Should Lawyers “force” their clients to mediate?
Litigation,Lawyers and Attorneys,Mediation
January 26, 2015
Recently, a litigant refused to mediate their dispute, ultimately losing in court and paying the attorney's fees of the prevailing party.
Employer Class Action Certification
July 9, 2014
For those employers who had all but given up hope of receiving relief from the courts, the California Supreme Court recently provided a glimmer of hope with its holding in Duran v. U.S. Bank.
Employees Training/Education Cost Repayment Contracts
May 6, 2014
Many employers train or educate employees at considerable expense. Can employers be reimbursed if an employee leaves shortly (within a few years) after completing the training/education? Can you deduct the cost of training/education from an employee’s wages?
Protecting Trade Secrets From Use by Former Employees
Litigation,Business,Labor & Employment,Business Transactions,Lawyers and Attorneys
March 6, 2014
The most prudent approach for an employer is to minimize the risk of loss of trade secrets by taking all reasonable measures available to protect the trade secrets.
California Minimum Wage Law (2014): The Hidden Effects
March 6, 2014
Hidden Effects Of New California Minimum Wage Law
What Is An Integration Clause – And Why Should I Care?
February 28, 2014
Many written contracts include a short paragraph usually entitled "Entire Agreement" or "Integration Clause" that has legal ramifications that the parties should understand.
Contractual Arbitration Provisions Under California Law
Litigation,Real Estate,Business Transactions,Mediation
February 5, 2014
If you have ever purchased or sold a home, or seen a medical doctor, no doubt you were presented with a proposed written agreement, possibly on a preprinted form, that contained an arbitration provision.
Contesting a Petition for Adjudication as a Newspaper of General Circulation
Media & First Amendment,Lawyers and Attorneys
January 31, 2014
What happens when a newspaper files for adjudication, but it doesn't meet those requirements?
Employers Beware – Potential Liability for Serving Alcohol at Holiday Parties
Litigation,Labor & Employment,Lawyers and Attorneys
November 26, 2013
Employers Beware - Potential Liability for Serving Alcohol at Holiday Parties
Calemine v. Samuelson- Duty to Disclose Prior Construction Defect Lawsuits
Litigation,Real Estate,Construction
October 15, 2013
A seller's duty to disclose construction defects likely includes the duty to disclose prior construction defect litigation under the California ruling in Calemine v. Samuelson.
U.S. Supreme Court Delivers Body-Blow To Employee Class Action Litigation
August 8, 2013
Employers seeking to avoid class action litigation should be encouraged by the U.S. Supreme Court's recent counter-punch delivered in American Express Co. v. Italian Colors Restaurant.
Employers Beware: Overtime Wages Must Be Paid to Salaried Employees
January 14, 2013
Assembly Bill No. 2103 amends Labor Code section 515
Tax Issues in Identity Theft
January 11, 2013
Identity theft is on the rise and is a frustrating process for victims. Some studies estimate that over nine million persons a year are victims.
Dog Beaten With Bat by Neighbor; Owner Recovers Emotional Distress Damages
November 27, 2012
emotional distress damages avaialble to pet owners
California Courts Narrowly Construe Covenants Not to Compete
November 21, 2012
California courts have narrowed an employer’s ability to restrict employee activities after termination.
Hiring a Disbarred Colleague May Jeopardize Your Own License
State Bar,Lawyers and Attorneys
November 20, 2012
Would you consider hiring a disbarred or suspended friend or colleague?
Circumventing Workers Compensation Preemption
Litigation,Business,Labor & Employment,Personal Injury,Construction
November 19, 2012
Workers compensation preemption prohibits third parties that allegedly injure an employee from seeking redress against an employer by way of a cross-complaint for indemnity.
Hiring a Contractor? Make Sure the Contractor Is Insured!
Litigation,Real Estate,Construction
November 2, 2012
If you'll be hiring a contractor to do work on your property, be certain you review their liability policy carefully.
Arbitrator Disclosures Give Rise To Litigation
Litigation,Writs & Appeals,Mediation
September 25, 2012
Court rules that arbitrators need not live in splendid isolation!
Modified Seller Held Note Subject to Anti-Deficiency Statutes
Litigation,Real Estate,Writs & Appeals
September 5, 2012
Modified Seller Held Note Subject to Anti-deficiency Statutes
Service and Repair Contracts – What is Required in California
August 30, 2012
Before you have a contractor begin any home improvements, there are some things you should know.
Sending a Debt Collection Letter to Debtor’s Place of Employment May Violate the Fair Debt Collection Practices Act
Litigation,Business,Lawyers and Attorneys
August 13, 2012
The Ninth Circuit has ruled that a lawyer (or other debt collector) may not send a debt collection letter to a debtor at the latter’s workplace – even if it’s addressed in the debtor’s name, “care of” the employer and marked “personal and confidential."
Corporate Officer Liability for Failure to Supervise
August 10, 2012
Although California law creates a duty to supervise employees by the designated officer of a corporate real estate broker, the Court of Appeal ruled that this duty is owed only to the corporation, not to third parties harmed by the failure to supervise.
Salas v. Sierra Chemical Co. – Undocumented Workers May Be Precluded From Bringing Claims Against Employers
Litigation,Business,Labor & Employment
August 9, 2012
Employers will want to pay close attention to the California Supreme Court’s pending decision in Salas v. Sierra Chemical Co. as it may substantially affect their exposure to liability for certain claims by undocumented employees.
The Property Information Sheet: A Trap for the Unwary Real Estate Broker
August 6, 2012
A standard real estate form known as the Property Information Sheet may create legal problems if not used properly by commercial real estate brokers.
Impulsive Use of E-Mails May Trigger a State Bar Inquiry
State Bar,Lawyers and Attorneys
July 19, 2012
Rule 5-100 of the State Bar Rules of Professional Conduct prohibits an attorney from threatening an opposing party with criminal prosecution or professional disciplinary actions to gain an advantage in a civil matter.
JURORS GONE WILD! Emotions Run Amok?
Litigation,Labor & Employment,News
May 21, 2012
Recently, a California jury awarded a fired employee a stunning $167.7 million, made up of $125 million in punitives (emotional distress).... Have we placed our emotions above what remains of our intellects?
Tired of Residential Tenants Smoking in Your Rentals? Civil Code Section 1947.5
May 15, 2012
California State Legislature passed Senate Bill 332, adding to Civil Code as section 1947.5, allowing landlords of residential property to ban smoking tobacco therein as of January 1, 2012.
CEQA Hits Home – Berkeley Hillside Preservation v. City of Berkeley
May 14, 2012
The California Environmental Quality Act (CEQA) was enacted to provide the fullest possible protection of the environment when governmental entities make decisions that have the potential of adversely affecting the environment.
Freedom to Choose Your Roommate: Fair Housing Council of San Fernando Valley v. Roommate.com
Litigation,Real Estate,News,Writs & Appeals
April 30, 2012
Can the selection of a roommate give rise to a legal claim for discrimination? The Ninth Circuit recently weighed in.
What You Should Not Do When Trying To Collect On A Debt
Litigation,Business,Business Transactions
March 27, 2012
Creditors, collection agencies, and even attorneys can be held liable for abusive collection practices under both federal and state law. There are steps you should avoid taking when attempting to collect on a debt:
Toyota Motor Corporation v. Superior Court – Corporate Person Most Qualified / Knowledgeable Depositions
March 6, 2012
Corporate employers with employees located outside California will have to decide whether to agree to send any out-of-state employees to California for future Person Most Qualified/Knowledgeable depositions.
The Uncertainty of Litigation
February 29, 2012
Attorneys regularly counsel their clients regarding the unpredictability of juries. Less is said regarding the unpredictability of judges.
Report Someone to the IRS for Fun and Money
February 8, 2012
Who are the IRS’s favorite superheroes? The X-Men. The IRS loves to hear from ex-spouses, ex-business partners and ex-employees about taxpayers who may not have fully met their federal tax obligations.
Why is it Legal Malpractice?
Litigation,Lawyers and Attorneys
February 6, 2012
I see another major law firm has been sued for legal malpractice by a hedge fund manager and a distressed investment firm who claim that their lawyers didn't advise them about a particular term in a deal involving tens of millions of dollars, if not more.
Some are Slow Learners
Litigation,Media & First Amendment
February 3, 2012
Reprimanded teacher objects to disclosure of the reprimand. The appellate court’s opinion in Marken v. Santa Monica-Malibu Unif. Sch. Dist. (Jan. 24, 2012) No. B231787 is an excellent recap of the California Public Records Act with respect to disclosure of certain records of public employees.
Is There Any Way I Can Get Out of My Lease?
Real Estate,Business Transactions
February 1, 2012
If your business is continuing to suffer, is there any way to get out from under what may now appear to be an unfavorable lease?
Employers Beware – Provision in Employment Agreement Requiring Binding Arbitration May Be Unenforceable
January 13, 2012
Arbitration agreements in employment agreements may not be enforced, absent special care given by employers when hiring employees.
Check Marked “Paid in Full”: To Cash or Not to Cash?
Litigation,Business Transactions
January 4, 2012
I have repeatedly been asked the question from puzzled clients, “should I cash the check or not?” This situation usually arises when the client is owed $2,000 (for example) and the customer mails the client a check for $1,500 with a notation “payment in full” written on the check.
California Mechanic’s Liens and Bankruptcy
Litigation,Construction,Bankruptcy
December 28, 2011
California’s Mechanic’s Lien Law (Civil Code section 3082 et seq.) is littered with short deadlines, which are further complicated by the rules of bankruptcy.
Homebuilders: Good News About Your Alternative Nonadversarial Prelitigation Contractual Provision
Business,Real Estate,Construction
December 20, 2011
The recent ruling in Baeza v. Superior Court upheld the alternative nonadversarial prelitigation contractual provision utilized by one homebuilder.
Is It Possible To Obtain A Prescriptive Easement Over An Existing Easement?
Litigation,Real Estate,Writs & Appeals
December 12, 2011
A recent decision regarding commercial property in Orange County, California addressed one rare situation in which payment of property taxes may be required to establish a prescriptive easement.
Not All Arbitration Clauses Are Enforceable
Litigation,Business,Business Transactions,Mediation
December 8, 2011
Although it is common practice among retailers to use form contracts presented to consumers for signing without explanation and without an ability to negotiate any of the terms, a court recently held that an arbitration clause in a form contract for the purchase of a used vehicle was unenforceable.
Attorneys Who Enter Business Agreements with Friends Should Use the Same Standards as Business Agreements with Clients
Litigation,State Bar,Real Estate,Business Transactions
November 21, 2011
Attorneys should be careful when entering into business transactions with friends that have also been clients, as Rule 3-300 of the Rules of Professional Conduct provides that a member of the State Bar shall not enter into a business transaction with a client unless certain requirements have been satisfied.
A Lender Owes No Duty to a Borrower to Disclose an Intent to Defraud the Borrower
November 16, 2011
Homeowners sued their lenders, creatively claiming that the lender had a separate duty to disclose to each of them the lender’s intent to defraud them on their loans.
Finally, A Victory For The “Imperfect” Homeowner!
Litigation,Personal Injury,Real Estate
November 14, 2011
Individual homeowners, and homeowner’s associations (and HOA management companies), should continue to pay close attention to property conditions that may pose a significant risk of injury to guests and visitors.
Warning to Contractors and Material Suppliers: Your Workers’ Smoking May Be Hazardous to Your Wealth
Litigation,Labor & Employment,Real Estate,Construction
November 8, 2011
A flooring contractor was found to have negligently caused a fire started by a worker’s discarded cigarette that damaged a homeowners’ property in the amount of $424,050.
Oops! Foreclosing Trustee Has to Eat Error
November 7, 2011
Foreclosing trustee represented that the delinquency amount was about $22,000. Actually, this was about one-tenth the true amount of about $220000. The Court of Appeal shifted the loss to the trustee, ruling that the buyer could obtain the huge windfall.
Developers May Be Liable to Homeowners for Marketing to Sub-prime Buyers
Litigation,Real Estate,Business Transactions
October 19, 2011
Can homeowners sue a developer for the damages caused by that developer in marketing neighboring homes to sub-prime buyers who presented a high risk of foreclosure? The answer is an uncomfortable “maybe” for housing developers, according to the recent Ninth Circuit decision in Maya v. Centex Corp.
What is the Legal Value of a Cat?
October 13, 2011
A California Court of Appeals recently allowed a cat owner to recover $36,000 in vet costs and punitive damages from their neighbors who allegedly shot and injured the cat, rejecting that only the fair market value of the stray cat could be recovered.
Dishonest Notaries Can Escape Civil Liability After 6 Years
October 10, 2011
A dishonest notary can corrupt the chain of title of real property with a void deed by falsely notarizing the forged signature of the grantor, with no recourse if the statute of limitations has passed.
Landlord Responsibilities to Neighboring Properties for Problem Tenants
Litigation,Real Estate,Business Transactions
October 4, 2011
Whether you are a landlord for a residential or commercial property, you will owe certain legal duties to your neighbors, even if you never actually occupy your property or use it beyond renting it out.
HOA Fees are Non-Dischargeable in Bankruptcy
Litigation,Real Estate,Bankruptcy
October 3, 2011
A homeowner should be aware that homeowners association dues, fees or assessments are non-dischargeable in Chapter 7, 11, 12, & 13 bankruptcy under 11 U.S.C. §523(a)(16).
Unlicensed Contractors Can Agree to Binding Arbitration
Litigation,Business,Construction
September 22, 2011
Generally, an unlicensed contractor may not collect compensation for construction work. However, will a court enforce an arbitration award involving an unlicensed contractor where arbitration was voluntarily agreed to by all parties?
Law Clerk Claims Not to be a “Professional,” Loses Appeal
Litigation,Business,Labor & Employment
September 20, 2011
California employers may now be able to lean a little more on the "learned professional" exemption when facing an employee's claim that he or she should have been treated as "non-exempt" for payroll purposes.
Vacation Time Disguised as a “Sabbatical” May Require Employee Compensation Upon Termination
Litigation,Business,Labor & Employment
September 15, 2011
A court ruled that a program described by an employer as a sabbatical program can be deemed to be additional vacation time for the employee requiring compensation by the employer.
Jumbled Document Production Equals $74,809 In Sanctions
Litigation,Lawyers and Attorneys
September 12, 2011
We lawyers may want to keep this case handy to drop into a meet-and-confer letter to send to opposing counsel/party who plays discovery games and to warn our own clients that such games can be costly.
How to Collect a Debt
August 25, 2011
During the economic downturn of the last few years, an increasing number of our firm’s clients have expressed concern over the fact that a growing number of their business’s customers are becoming slow pay . . . or, perhaps, no pay. In some instances, clients have asked, "what should I do when a customer has an account receivable that is more than four months past due and that customer refuses to return my call?"
Statements About Candidates at Homeowner Association Meetings are Privileged – Cabrera v. Alam
Litigation,Media & First Amendment,Real Estate
August 18, 2011
The Court of Appeal recently found that statements made at a homeowner association meeting immediately before the election of the board of directors could not support a claim for defamation.
Buy-Sell Agreements: An Introduction – Part I
Litigation,Business,Business Transactions
August 17, 2011
Buy-sell agreements are contracts by which interest holders in entities may seek to maintain control over the ownership and management of their business by restricting or compelling the transfer of the ownership interests.
Fee Disputes Between Lawyers and Their Clients: Deadbeat Clients Beat Back Against Their Lawyers
Litigation,Lawyers and Attorneys
August 16, 2011
Many lawyers have seen an increase in the number of clients who stop paying them for their services. And, the legal malpractice industry reports that there has been an upswing in the number of legal malpractice claims against lawyers in the same time frame.
California SB 86 Tries Carrot and Stick Approach to Tax Shelters
August 11, 2011
California's new Voluntary Compliance Initiative 2 is an opportunity for taxpayers who may have underreported their California income tax liabilities, through the use of abusive tax avoidance transactions or offshore financial arrangements, to amend their tax returns for 2010 and prior tax years and obtain a waiver of most penalties.
A Judicial Foreclosure Sale Tale: Training for Deputies
Litigation,Real Estate,Business Transactions
August 9, 2011
Judicial foreclosure sales appear to be so rare in Riverside County that the judicial sale that I recently attended was also used as a training vehicle for several uniformed deputies in the sheriff’s office.
Trees Saved From Slaughter!
August 8, 2011
The new California Rules of Court have eliminated the requirement that paper copies of non-California authorities be lodged with the court when cited in a brief or memorandum.
Innocent Spouse Relief Extended by IRS
July 26, 2011
The IRS announced Monday that it will make it easier for some taxpayers who were not aware of their spouse’s misreporting of taxes to seek innocent-spouse relief. The innocent spouse rule can relieve taxpayers of their tax liabilities, interest and penalties as a result of filing a joint tax return with their current or ex-spouse.
When Is a Deposit Not a Deposit? When it is in Conjunction with the Purchase of Property
Litigation,Real Estate,Business Transactions
July 13, 2011
Is a buyer's deposit in an unconsummated real estate transaction refundable? As you may have guessed, it depends, though a recent court decision returned a "non-refundable" deposit to a buyer.
Sole Shareholder of Corporation Is Not Liable for Employment Discrimination in the Absence of Alter Ego Liability
Litigation,Business,Labor & Employment
July 6, 2011
In the recent case of Leek v. Cooper (2011) 194 Cal.App.4th 399, the court addressed the issue as to whether or not the sole shareholder of a corporation that was operating a car dealership could be held individually liable for age discrimination on the basis that the sole shareholder had actual control over the affairs of the business.
Disobeying Motion In Limine is Attorney Misconduct
June 21, 2011
The obligations of counsel at trial and misconduct in ignoring the motion in limine ordered by the trial court have recently been clarified by the Court of Appeal.
Anti-Retaliation Statute Applies Both to Written and Oral Complaints
June 15, 2011
The Supreme Court held that it is unlawful to terminate an employee who made oral complaints about his employment, the anti-retaliation statute applies both to written and oral complaints.
California Public Records Act Applies to Bar Admission Documents – Sander v. State Bar of California
Litigation,Media & First Amendment
June 12, 2011
The unanimous opinion of the First District Court of Appeal held that the trial court erred when it refused to allow a UCLA Law School professor to view the demographic data of the State Bar.
Forming a Tax Exempt Organization
June 10, 2011
With the current state of the world, charities are needed now more than ever. If you are contemplating creating a charity you should consult with a qualified tax attorney or advisor as the world of charities is more complicated than you would think.
Should I Provide My Zip Code To Retailers Who Ask?
June 9, 2011
Retailers may start to think twice about continuing to ask customers for their zip code, as it may subject them to litigation from their customers.
Union’s Personal Attacks on Managers Have Limits
Litigation,Media & First Amendment,Labor & Employment
June 7, 2011
Not all statements by a union and its members are protected, even in the context of a strike or other union action.
Will Questions About 998 Offers Ever Cease?
June 6, 2011
California Code of Civil Procedure section 998 has generated a lot of published appellate opinions over the years.
California Employers Wrestling With How to Control the Social Media of Their Staff
Media & First Amendment,Labor & Employment
June 3, 2011
California employers wrestling with how to control the social media of their staff now have some guidance concerning permitted discipline of rogue employees.
Do I Have to Pay my Disbarred Lawyer?
May 26, 2011
What is the client to do when his or her attorney is ordered suspended by the California Supreme Court and therefore unable to practice law?
The Law of Suspended Corporations in California
May 17, 2011
In California, both the Secretary of State’s office and the Franchise Tax Board have the authority to suspend a California corporation under certain situations.
Pension Benefits of Public Retirees Not Private
Litigation,Media & First Amendment,Labor & Employment,Writs & Appeals
May 13, 2011
Public employee pay and benefits have been hot topics of late, exacerbated by the fiscal crisis in California at all levels of government. This topic reached the courts when one of the state's leading newspapers sought the records of a public employee retirement system.
Trees May Be a “Spite Fence”
Litigation,Real Estate,Environmental
May 13, 2011
Even California's bent towards environmental protection could not prevent a court from agreeing that even trees may qualify as an unlawful "spite fence" in California. A "Spite Fence," which may be prohibited by court order under California law, is defined as "[a]ny . . . structure" over 10 feet that was "maliciously erected or maintained for the purpose of annoying [a neighbor]."
IRS Appeals Procedure
Litigation,Writs & Appeals,Tax,Mediation
May 3, 2011
The IRS provides a forum for appealing a proposed income tax deficiency known as IRS Appeals, the only level of administrative appeal within the IRS.
Ending the Business Marriage – Dissolving the Partnership
Litigation,Business,Business Transactions
April 25, 2011
Just like most marriages, the beginning of most business partnerships are filled with hope, optimism, enthusiasm and a general feeling of future success. Unfortunately, as with some marriages, problems develop over time in partnerships and a dissolution or divorce is needed.
Preparing Your Own Will or Trust Without Consulting a Lawyer Is a Risk Not Worth Taking
April 11, 2011
Consult with an experienced estate planning attorney before creating your own estate plan documents, as costly unintended consequences may arise.
Creditor Twenty-Day Claims and the Bankruptcy Code: “Goods” or “Services”?
April 6, 2011
A bankruptcy court recently ruled on what constitutes "goods" that are entitled to a priority administrative claim for their value under § 503(b)(9) of the Bankruptcy Code.
I Might Not Get Paid Anything?
March 30, 2011
If you represent those in the construction industry, you should advise them to pay close attention to any licensing requirements of any contract or subcontract they may enter into.
One Year to Sue A Lawyer for Malicious Prosecution – Statute of Limitations Explained
March 28, 2011
Malicious prosecution claims against an attorney must be brought in one year, according to a recent California Court of Appeal opinion. These suits may be on the upswing since the California economy cratered in the past few years.
IRS Codification of the Economic Substance Doctrine Imposes New Penalties
March 24, 2011
Taxpayer seeking the tax benefits of a transaction that the IRS deems to have no economic purpose, aside from reduction of tax liability, will face stiff penalties under the new 2010 Revenue Reconciliation Act.
The Perils of Procrastination – Misunderstanding a Statute of Limitations
March 22, 2011
When does a statute of limitation begin running, i.e., when does a cause of action accrue and what's the deadline for filing suit? That depends.
What Must an Employer Do When a Non-Employee Harasses an Employee?
March 15, 2011
An employer that learns of harassing behavior from a third party must take immediate and appropriate action to correct the situation.
Homeowner Sued by Subcontractor’s Injured Employee
Litigation,Labor & Employment,Personal Injury,Construction
March 14, 2011
Under certain circumstances, an injured person working in your home can file a civil lawsuit against you as the homeowner, rather than being limited to workers compensation. A recent California Supreme Court decision held that this is the case and defined the standard of care to be used in a case brought by an injured employee working on a homeowner's substantial remodeling project. (Cortez v. Abich (2011) 51 Cal. 4th 285.)
The Consequences of a “Failed” Mediation
March 10, 2011
Several years ago, a judge called me to see if I could mediate a matter that was in trial in her department that day, starting at the lunch break. Flattered, I said I would. Little did I know that this mediation would become one of my most memorable.
Truck Drivers Parked Alongside Freeways Owe a Duty to Motorists
March 9, 2011
Should the duty of drivers to exercise ordinary care for others in their use of streets and highways include truck drivers parked alongside a freeway? The Supreme Court of California's recent decision in Cabral v. Ralphs Grocery Company (Feb. 28, 2011) No S178799, concerning an automobile/truck accident found no exception for truckdrivers.
Circular 230 – Regulation of Practice Before the IRS
March 8, 2011
Circular 230 contains rules governing the recognition of attorneys, certified public accountants, enrolled agents, and other persons representing taxpayers before the IRS.
Home Buyers Beware: Sellers Can Lie and Get Away With It!
Litigation,Real Estate,Construction
March 7, 2011
California law imposes a duty on home buyers to perform inspections and charges them with knowledge of conditions that are patent and obvious.
Non-Compete Clauses After Edwards v. Authur Andersen LLP
Litigation,Business,Labor & Employment
March 2, 2011
Over the last several years courts have been narrowing an employer's ability to restrict employee activities after termination, culminating with the California Supreme Court's decision in Edwards v. Authur Andersen LLP.
Homebuilder Alert: Your Home Sales Contract May Not Protect You
Litigation,Real Estate,Construction
March 1, 2011
If a homebuilders alternative contractual pre-litigation provisions are found to be unconscionable, the builder cannot require homeowners to comply with SB 800’s statutory, non-adversarial procedures.
Foreign Account Holding Can Come in from the Cold
February 28, 2011
The IRS announced on February 8, 2011 a special voluntary disclosure initiative designed to bring foreign accounts back into the U.S. tax system and help people with undisclosed income to avoid civil and possible criminal penalties.
But a Deal is a Deal, Right?
February 25, 2011
All attorneys should learn from Critzer v. Enos. A deal is only a deal, if it is in writing or read on the record before the court, by a party or an authorized non-attorney representative of a party.
Duran v. U.S. Bank – Can Class Action Plaintiffs Use Statistical Sampling to Prove Liability?
Litigation,Business,Labor & Employment
February 22, 2011
Duran v. U.S. Bank could dictate how future class action lawsuits are litigated by allowing statistical samples to prove liability, not just damages, which will not favor employers.
The Business of California Medical Marijuana Cooperatives and Collectives
Litigation,Business Transactions
February 18, 2011
The Compassionate Use Act of 1996 (Prop 215) and the Medical Marijuana Program Act (Senate Bill 420) decriminalized medical marijuana use and implemented a statewide identification card system for medical marijuana users and providers under California law. Since then, scores of medical marijuana “dispensaries” began operating throughout California.
Bonded Stop Notice Claimants Must Serve Proper Office of Bank or Construction Lender
January 28, 2011
Contractors should be aware of the requirement that stop notices be served on the particular branch of the construction lender actually “administering or holding” the loan funds, per California Civil Code section 3083.
Debt Consolidation v. Bankruptcy: Weighing Your Options
January 24, 2011
Consumers are best advised to meet with an experienced bankruptcy attorney when choosing between debt consolidation or bankruptcy.
Terminating Employee Shortly After Complaint to HR Exposes Employer to Liability
Litigation,Business,Labor & Employment
January 21, 2011
The Ninth Circuit Court of Appeals held that an employee’s termination two days after he complained to his employer’s HR office raised a triable issue of material fact based on circumstantial evidence that he was subject to retaliatory termination and that the employer’s stated reason for his termination was a mere pretext.
Right to Arbitrate May be Waived by Proceeding With a Lawsuit
Litigation,Personal Injury,Mediation
January 18, 2011
The California Court of Appeal recently found that a plaintiff’s election to proceed far into their lawsuit waived their contractual right to arbitrate the dispute.
You Can Pay Me Now or You Can Pay Me Later
Litigation,Business,Business Transactions
January 10, 2011
A brief legal consultation before signing a contract can save money and headaches later.
Spending a few hundred dollars for an attorney to review a proposed agreement of any sort is a good business practice as it can save thousands of dollars and headaches in the long run before the transaction and the relationship have soured.
Developers Beware! Comply with the California Environmental Quality Act or Go Broke
Litigation,Business,Real Estate,Environmental
January 7, 2011
California’s Environmental Quality Act (CEQA) was enacted in 1970. The law has undergone numerous amendments and has been the subject of countless published court opinions, which often have confused legal scholars and non-lawyers alike.
Proposed California SB 6: Beware of Fraudulent Real Estate Appraising
Litigation,Business,Real Estate
January 7, 2011
Proposed California laws will increase the liability of those persons who prepare real property valuations, opine on the value of real property or influence appraisers.
Too Quick to Sue a Newspaper: Anti-SLAPP Part Two
Litigation,Business,Media & First Amendment
January 4, 2011
Last month, I wrote about a defamation case brought by a doctor against a newspaper. This month, let’s talk about a lawyer who sued a newspaper on his own behalf. The old adage is that an attorney who represents himself has a fool for a client.
The Preliminary 20-Day Notice, Mechanic’s Liens and Stop Notices: California Civil Code sections 3097 & 3097.1
Litigation,Business,Real Estate,Construction
December 30, 2010
While most construction contractors and material suppliers know about serving the preliminary 20-day notice in order to qualify for a mechanic’s lien and/or stop notice, few focus on the proof of service requirement in California Civil Code section 3097.1(a).
How Bankruptcy Affects Tax Obligations for Individuals and Sole Proprietors
Litigation,Business,Labor & Employment,Bankruptcy,Tax
December 29, 2010
Our capitalist system encourages individuals to take risks. Some prove productive; unfortunately, for those that fail, many times the individual is left with tax debt.
Charging Minors Admission to a House Party? Social Host Immunity from Liability Remains
Litigation,Personal Injury,Real Estate
December 22, 2010
California law provides broad immunity from civil liability for a social host who "furnishes alcoholic beverages to any person," as many Californians do at their house parties. (Civil Code section 1714 (c).) However, a social host loses that immunity if he or she "sells, or causes to be sold, any alcoholic beverage, to any obviously intoxicated minor." (Business and Professions Code section 25602.1.)
Employers- Avoid the Million Dollar Liability in Your Paychecks
Litigation,Business,Labor & Employment
December 21, 2010
To the surprise of one local employer, a class action labor and employment attorney alleged that their pay stubs failed to include the required information. With the opposing attorney specifying damages at the statutory maximum of $4,000 for each of their 250 employees, the employer was faced with a potential $1M liability.
Think Twice Before Suing a Newspaper!
Litigation,Business,Media & First Amendment
December 18, 2010
Don’t rush to sue a newspaper or other media outlet. Losing’s bad enough, but paying the newspaper’s lawyer rubs salt in the self-inflicted wound.
Evidence at State Bar Disciplinary Hearings Changing in 2011
December 15, 2010
Beginning January 1, 2011, the California Evidence Code, as applied in civil cases, will no longer govern California State Bar attorney disciplinary hearings. The new Rules of Procedure, new rule 7.12, provide that the hearing need not be conducted according to technical rules of evidence.
Corporate Formalities Checklist: Comply with Corporate Formalities to Ensure Limited Liability
December 10, 2010
In order to be protected by limited liability, a corporation must act like an independent legal entity and follow through with its corporate formalities of properly addressing corporate records, regular meetings and financial statements.
Construction Lenders Beware of California Civil Code section 3137(c)
Litigation,Business,Real Estate,Construction
December 10, 2010
Construction lenders beware of California Civil Code section 3137(c), which provides that a mechanic’s lien for “site improvements” has priority over a trust deed recorded before commencement of the site improvement work in certain circumstances.
That provision has several subparts, but one trap for the unsuspecting lender and title insurance company is this if the loan proceeds secured by the trust deed are solely or primarily to pay for the construction of the site improvements, then a mechanic’s lien for those site improvements would have priority over the prior-recorded trust deed. Period.