Void and Unenforceable

News & Analysis as of

UPDATE: Is Your Workers’ Compensation Program Unlawful?

Under a ruling this week from the California Insurance Commissioner, your company may be insured under an unenforceable workers’ compensation program. You may also be entitled to a refund of premiums paid to California...more

The Simplest Way to Defeat Claims Alleging an Invalid Assignment of a Deed of Trust: Judicially Noticeable Documents

Recently, much judicial ink has been deployed writing opinions addressing borrower challenges to foreclosure based on allegations that the deed of trust was not validly assigned to the foreclosing lender. Earlier this...more

Bribery and Corruption in International Arbitration

Corruption in international business is becoming endemic. Transparency International's latest Global Corruption Report highlights that nearly two in five business executives say they have been asked to pay a bribe when...more

South Carolina Court of Appeals Says 150-Mile Geographic Restriction in Non-Compete is Unreasonable

South Carolina courts evaluate the enforceability of non-compete provisions executed in the employment context and in connection with the sale of the business under the same reasonableness test. To be enforceable in South...more

New York’s Highest Court Enforces Arbitration Provision in California Workers’ Compensation Insurance Agreement, Rejecting...

A recent ruling by the New York State Court of Appeals underscores the Federal Arbitration Act’s(“FAA”) strong policy favoring enforcement of arbitration agreements—even in the insurance industry and despite federal policy...more

Is Your Workers Compensation Program Unlawful?

A popular workers compensation insurance program offered by Berkshire Hathaway subsidiaries Applied Underwriters Captive Risk Assurance Company (Applied Underwriters) and California Insurance Company may be in trouble. On...more

The Supreme Court - April 2016 #2

The Supreme Court of the United States issued one decision on April 18, 2016: - Welch v. United States, No. 15-6418: Last term, the Supreme Court, in Johnson v. United States, 576 U.S. __ (2015), held that the residual...more

Utah Governor Signs Law Restricting Post-Termination Noncompete Agreements

On March 22, 2016, Utah Governor Gary Herbert signed into law the Post-Employment Restrictions Act (H.B. 251), which limits the duration of post-employment noncompete agreements between employers and employees to a maximum of...more

How does Utah’s New Noncompete Law Affect You?

Utah employers should update their form noncompete agreements to ensure they comply with the state’s new Post-Employment Restrictions Act. Employers of all sizes are subject to the Act, which was adopted by the Utah...more

Molek v. Molek and Parol Partitions

Oral agreements to partition lands are tricky situations that must be dealt with carefully when analyzing the title to a piece of property. Known legally as parol partitions, these agreements often arise in the context of...more

Steps Every Startup Should Take to Protect its Intellectual Property

Many startup entrepreneurs are not aware of California’s laws around the ownership of intellectual property. And for most, the concepts for products or services are the life-blood of a company’s operations and future....more

Borrower Has Standing To Challenge Foreclosure Sale Based on Late Assignment of Deed of Trust, Calif. Supreme Court Rules; Many...

The California Supreme Court has unanimously ruled in Yvanova v. New Century Mortgage Corp. that a homeowner has standing to bring a wrongful foreclosure action after a completed nonjudicial foreclosure sale on the grounds...more

If You Sell Online, Your Fine Print May Put You At Risk: Wave of Lawsuits Targets Website Terms and Conditions Under the New...

Nearly every business involved in online commerce or advertising includes disclaimers, limitations of liability, and other terms on its website’s Terms and Conditions or Rules of Use. Those Terms and Conditions are designed...more

CA Supreme Court Unanimously Holds that a Mortgage Loan Borrower Has Standing to Sue for Wrongful Foreclosure due to Allegedly...

Action Item: In a ruling last week, the California Supreme Court supported Glaski and issued a narrow holding that, post-foreclosure, borrowers have standing to assert wrongful foreclosure based on allegations that an...more

Is the Washington Legislature Caching Out Noncompete Agreements? How This Change Might Affect Your Ability to Protect Your...

For tech giants like Microsoft and Amazon, and any number of emerging tech companies, tech professionals are a hot commodity in the state of Washington. No doubt, the competition is fierce here in Seattle and within the...more

Alaska Presses D.C. Court of Appeals to Reject Trust Acquisitions in Alaska

The question of whether Alaska Natives may place land in the same federal trust status as Indian tribes in the lower 48 states was widely thought to have been resolved but is now before the Court of Appeals for the District...more

New Jersey Appellate Court Rules Arbitration Agreement in Employee Handbook Unenforceable

In C.M. v. Maiden Re Insurance Services, LLC, No. L-3622-13 (App. Div. Sept. 18, 2015), the New Jersey Appellate Division held that an employee was not compelled to arbitrate her employment discrimination claims,...more

Fenwick Employment Brief

Legislative Update - Governor Brown recently signed into state law the following employment law bills (among others): SB 358—Referred to as the California Fair Pay Act, this law is directed at closing the pay...more

Struggle At The Supreme Court Over Arbitration Clauses

The U.S. Supreme Court returned to familiar territory last week in DirecTV Inc. v. Imburgia (argued Oct. 6, 2015): the enforceability of an arbitration clause in a consumer contract containing a class action waiver. But...more

Another State Court Limits the Enforceability of Anti-Assignment Clauses

We recently wrote about the California Supreme Court’s decision in Fluor Corporation v. Superior Court to limit the enforceability of clauses in third party liability insurance policies that prohibit the policyholder from...more

California Legislature Targets Employment Arbitration Agreements

It is no secret that California is no friend to arbitration agreements. As the United States Supreme Court noted in its 2011 opinion in AT&T Mobility LLC v. Concepcion, “California’s courts have been more likely to hold...more

How Not To Write An Employment Agreement Arbitration Clause: Court Of Appeal Rejects One Sided Clause As Procedurally And...

In Carlson v. Home Team Pest Defense, Inc. (Ct. of Appeal A142219), published August 17, 2015, the Court of Appeal held that an employer’s arbitration clause which allowed only the employer to file lawsuits for certain...more

Is the Attorney's Fees Clause Moot in an Illegal Contract? – Depends On Your Involvement, Explains First Appellate District Court

The Court of Appeal recently clarified when a party can recover attorney's fees under a real estate purchase contract that is ruled to be illegal. California courts have previously enforced attorney's fees provisions in a...more

Don’t Tell the Government “It Wasn’t Me”: ASBCA Holds Contract Void Ab Initio for Fraud

In the Appeal of Vertex Construction & Engineering, ASBCA No. 58988, decided last month, the Armed Services Board of Contract Appeals (“ASBCA”) exercised a “harsh” remedy in declaring Appellant’s contract void ab initio...more

New Jersey Supreme Court Calls for More Specific Language in Arbitration Agreements

Although New Jersey public policy generally favors arbitration as a method of resolving disputes, following the New Jersey Supreme Court’s unanimous holding in Atalese v. U.S. Legal Services Group L.P., companies doing...more

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