In Sandquist v. Lebo Automotive, the California Supreme Court was asked to determine whether a trial court had properly decided to strike all class arbitration claims brought by a salesperson on behalf of a class of car salespersons. The car dealership argued that the...
In a case published by the Ninth Circuit Court of Appeals on July 13, 2016 (No. 14-15857), the Court found that the taxpayer/debtor's attempt to file a very late return was not an honest and reasonable attempt to satisfy the requirements of the tax law and thus, the...
In Encino Motorcars, LLC v. Navarro, the Supreme Court was recently asked to determine if the Department of Labor could change its mind a second time whether car dealer employees selling service contracts were exempt from overtime compensation requirements of the Fair...
The Ninth Circuit BAP recently held in In re Endresen, BAP Nos. OR-15-1141 and OR-15-1190, that post-petition settlement proceeds on construction defect claims were part of the secured lender's collateral and not the result of after acquired "commercial tort claims"...
In the Matter of Castaic Partners II, LLC, No. 14-55281, the Ninth Circuit U.S. Court of Appeals recently found an appeal moot where the bankruptcy case had been finalized and dismissed. In particular, the creditor was granted relief from stay, the debtor appealed but...
Litigation involving members of close corporations may create issues with attorney representation. In Ontiveros v. Constable, 245 Cal. App. 4th 686, 199 Cal. Rptr. 3d 836 (2016), a minority shareholder brought derivative claims against the corporation, the majority...
As of January 1, 2016, any individual who is an owner, director, officer, or managing agent of an employer may be held liable as the employer if he or she violates, or causes to be violated, wage and hour provisions. Cal. Lab. Code § 558.1. The California Supreme...
By its terms, California Code of Civil Procedure Section 473 allows a court to grant leave to amend "any pleading." This broad language, however, is misleading. When a party fails to plead a compulsory cause of action in a cross complaint, a motion for leave to amend...
In Husky International Electronics, Inc. v. Ritz published on May 16, 2016, the Supreme Court of the United States ("SCOTUS") found a debt not dischargeable because of the debtor's intercompany transfer scheme to avoid paying the debt. The debt was owed by Chrysalis...
President Obama recently signed the Defend Trade Secrets Act of 2016 ("DTSA"), which provides California businesses with another tool to protect their trade secrets. Specifically, the DTSA provides trade secret owners with a federal civil right of action to pursue...