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Lenders and Insurance: Are Your Bases Covered? A Checklist for Confirming Lenders' Rights in Borrowers' Insurance Proceeds

The economic impacts of the COVID-19 pandemic, particularly the impacts arising from federal, state and local shelter-in-place restrictions, have caused numerous affected parties to submit claims under their insurance...more

Staying Out Of The Penalty Box: New Appellate Court Decision Provides Intriguing New Angle On What Constitutes An Unenforceable...

The Second Appellate District of the California Court of Appeal recently issued a decision in Constellation-F, LLC v. World Trading 23, Inc. finding that a holdover provision in a commercial lease providing for significantly...more

California Supreme Court Confirms Lender Foreclosure Option

Earlier this month, in Black Sky Capital v. Cobb, the California Supreme Court addressed the following question: when a creditor holds senior and junior liens on the same property, can the creditor non-judicially foreclose on...more

Assessing When a Discounted Payoff Agreement Becomes an Unenforceable Penalty

California courts have long wrestled with the enforceability of contracts executed after a prior problem between the parties, under which one party will pay money, but must pay a higher amount if they fail to make certain...more

Are You Ready For The Next Downturn?

A PRIMER ON KEY CASES AFFECTING COMMERCIAL REAL ESTATE LENDERS IN CALIFORNIA - When will the next economic downturn arrive? Prognosticators give a wide variety of opinions on that question, with some predicting many months...more

After Foreclosure, New Owners Must Perfect Title Before Serving a Three-Day Notice to Quit

On December 17, 2018, in Dr. Leevil, LLC v. Westlake Health Care Center, (2018 S.O.S. 5945), the California Supreme Court addressed a split in authority on the issue of when a new owner, who has acquired title to property...more

Reverse Veil Piercing May Be Used to Reach an LLC's Assets

"Piercing the corporate veil" typically occurs when a judgment creditor proves that the individual owner of a corporate judgment debtor is the alter ego of that entity, thereby allowing the creditor to pursue the individual's...more

Appellate Court Narrows the Scope of the Sham Guaranty Defense

California's anti-deficiency statutes limit a lender's right to recover a deficiency judgment against the borrower after a non-judicial foreclosure sale, but such protections generally do not extend to guarantors. A number of...more

Are You Ready for the Next Downturn? Ninth Circuit “Cramdown” Cases Affecting Real Estate Lenders

Plan Approval in a Multi-Debtor, Single-Plan Context - In In re Transwest Resort Properties, Inc., the Ninth Circuit addressed the Chapter 11 reorganization plan approval process where a single plan was proposed for...more

8/23/2018  /  Debtors , Lenders , Real Estate Market

A Lender May Be Able to Both Foreclose on a Senior Lien and Seek a Deficiency on a Junior Lien

Since the 1992 decision in Simon v. Superior Court , California lenders holding senior and junior liens on the same real property were barred from both non-judicially foreclosing pursuant to the senior lien and seeking a...more

Momentum Growing in the Effort to Adopt a Uniform Receivership Law

In a November 2017 alert, we discussed the recent effort in support of the adoption of the Uniform Commercial Real Estate Receivership Act (“Act”), which would allow receivership property sales free and clear of liens, impose...more

The Effort to Adopt a Uniform Receivership Law

There is a recent effort to adopt a uniform receivership act which is applicable to commercial real estate. If adopted in its current form in the 50 states, the receivership laws would provide a consistent treatment of laws...more

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