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Court Confirms Bank Can Be Held Liable for Conduct and Representations Occurring During Loan Modification Process

A California Court of Appeal recently held that a defaulting mortgagee can assert claims for breach of contract, wrongful foreclosure, unfair business practices and negligent misrepresentation against the foreclosing bank...more

7/9/2014 - Banks Breach of Contract Foreclosure Loan Modifications Loans Mortgages Popular Wrongful Foreclosures

Developer's Subdivision Project for County Deemed Private Work of Improvement for Purposes of Subcontractor's Claim, Extending...

The California Court of Appeal recently held that where a developer hires a subcontractor to perform work in connection with a subdivision agreement with a public entity, the project may be considered a private work of...more

4/25/2014 - Housing Developers Mechanics Lien Public-Private Partnerships Statute of Limitations Subcontractors Subdivision

Limited Partners Held Personally Liable for Debts of Limited Partnership Where Limited Partnership Was Insolvent

In a case that demonstrates the danger of relying on complex corporate structures to avoid personal liability, a California Court of Appeal recently held two limited partners personally liable for the debts of their limited...more

4/24/2014 - Corporate Governance Insolvency Limited Partnerships Personal Liability Third-Party Risk

Court of Appeal Confirms that Laborers and Materialmen Have Priority over Construction Lenders to Funds Used to Develop the...

A California Court of Appeal recently ruled that a construction lender must make available to stop notice claimants those amounts which the lender has already disbursed to itself on the construction loan. (Brewer Corp. v....more

2/17/2014 - Construction Contracts Construction Loans Contractors Debt

Bona Fide Lease of Illegally Converted Garage May Survive Foreclosure of Real Property Through End of Lease Term

Even a lease of an illegally converted garage is protected from foreclosure through the end of the lease term under the federal Protecting Tenants Against Foreclosure Act of 2009 (“PTFA”), except where the purchaser of the...more

2/11/2014 - Banking Sector Foreclosure Leases Protecting Tenants at Foreclosure Act Real Estate Market Survival Clauses

Loan Guarantors Fail To Establish Sham Guaranty Defense to Avoid Commercial Loan Obligations

A California appellate court recently found that despite the unity of ownership between a defendant's entities used for purposes of borrowing money in a commercial loan transaction, the debtor could not rely on the "sham...more

1/14/2014 - Affirmative Defenses Breach of Contract Commercial Loans Guaranty Claims

Insurance Company that Issues Liability Policy does not need to Defend Insured Party Against a Non-Financial Claim

In San Miguel Community Association v. State Farm General Insurance Company (2013) 220 Cal.App.4th 798), a third party's failure to seek compensatory damages against an insured rendered their dispute exempt from the insured’s...more

11/25/2013 - Commercial General Liability Policies Compensatory Damages Insureds State Farm Third-Party Liability

Federal Arbitration Act Preempts California’s Broughton-Cruz Rule, Allowing Arbitration of all Claims Including Claims for...

A federal district court denied a motion to compel arbitration for claims for injunctive relief under California’s unfair competition law, Consumer Legal Remedies Act, and false advertising law but granted the motion as to...more

11/22/2013 - Arbitration Arbitration Agreements Federal Arbitration Act Injunctions Preemption

Party May Be Awarded Attorney Fees in Defending Against Claim that Contract Is Invalid

A California court of appeal recently ruled that a party that successfully defends against a claim that a contract is void is entitled to be paid attorney fees by the party that unsuccessfully brought the action. ...more

11/8/2013 - Attorney's Fees Contract Disputes Void and Unenforceable

California Appellate Court Reaffirms the Trade Secret Displacement (Preemption) Doctrine

Courts continue to define the scope of the emerging trade secret displacement doctrine, (commonly referred to as preemption) which stems from California's Uniform Trade Secrets Act ("UTSA"). The UTSA contains a relatively...more

10/29/2013 - Claim Preclusion Misappropriation Preemption Trade Secrets UTSA

California Court of Appeal Holds Arbitration Clause Containing Multiple Options for Selection of Arbitrator Is Enforceable

Under California law, parties to a contract may include language in the contract agreeing that any disputes over the contract will be resolved by arbitration. Such an arbitration clause may specify a method for selecting an...more

10/15/2013 - Arbitration Arbitration Agreements Arbitrator Selection Disputes Forum Selection Clause

California Court of Appeal Confirms that Multiple Coverages in an Insurance Policy Generally Do Not Provide Extra Coverage for the...

A California court recently confirmed that insurance policies offering multiple coverages will not be interpreted as providing multiple sources of coverage for the same loss on the same property. Instead, when multiple...more

10/11/2013 - Contract Interpretation Homeowner's Insurance Insurers Loss Coverage

Court Confirms Board of Directors’ Discretion to Implement Executive Compensation Plan and Duty of Shareholders to Demand Action...

Under California and Delaware law, a shareholder lawsuit against a corporation requires that a plaintiff show efforts to demand action from the corporation’s board of directors prior to filing the lawsuit. This pre-suit...more

10/2/2013 - Board of Directors Breach of Duty Demand Futility Executive Compensation Fiduciary Duty Pleading Standards Shareholder Litigation

Contract Provision for Judicial Reference May be Enforced Even Though Provision Does Not Specifically State Right to Jury is...

California law provides that parties to a contract may agree to use alternative dispute resolution methods, such as arbitration and judicial reference, to resolve contract disputes. A recent California appellate court...more

9/23/2013 - Contract Interpretation Enforcement Judicial Reference Right to a Jury Waivers

Construction Defect Litigation: Right to Repair Act (SB 800) Does Not Eliminate Common Law Remedies for Actual Damage to...

California’s Right to Repair Act (also known as SB 800) provides court remedies for a homeowner when construction defects diminish the economic value of a home, even though no personal injuries or actual property damage have...more

9/5/2013 - Construction Defects Damages Homeowner's Insurance Loss in Economic Value Repairs

Interest Provision on Invoice Was Not a Term of the Contract Between Parties

A court of appeal recently addressed whether an interest provision in standard invoices was a term of the contract between two parties. The court held that the trial court improperly decided the issue under section 2202 of...more


California Courts Confirm: Fraud Actions Can Be Used to Avoid Contractual Obligations

Many people appreciate the importance of contracts. We sign them daily, from our agreement to pay the amount at the bottom of our lunch receipt to that pesky cell phone contract that seems to increase every month. However,...more

7/1/2013 - Contract Disputes Evidence Fraud Parol Evidence

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