California Lawyers Association

Business Law Business Litigation Committee

Updates from the BLS Business Litigation Committee

On October 12, 2019, Governor Gavin Newsom signed into law Assembly Bill 749 which created Code of Civil Procedure § 1002.5, effective January 1, 2020. The new statute prohibits a provision in a settlement agreement that prevents employees from obtaining future employment with the settling employer. Section 1002.5 applies to prohibit such “no-rehire” provisions in settlement agreements in civil actions. As a result, any provision in a settlement agreement entered on or after January 1, 2020 that prevents employees from obtaining future employment with the settling employer will be deemed void as a matter of law and against public policy. Read more
The following is a profile of the Honorable Mitchell D. Dembin, United States Magistrate Judge for the Southern District of California. Judge Dembin met with members of the Business Litigation Committee and the Insolvency Law Committee in his chambers at the James M. Carter & Judith N. Keep Courthouse in San Diego and discussed his personal and professional background, his appointment as a Magistrate Judge and his experience on the bench. Read more
Summary: Although a debtor-licensor's rejection of a trademark licensing agreement under the Bankruptcy Code breaches the contract, such action does not rescind it. Accordingly, the United States Supreme Court held, in an 8-1 decision, rejection of the license in bankruptcy does not deprive the licensee of its rights to use the trademark. In so ruling, the Supreme Court reversed the decision of a divided First Circuit and resolved a circuit split. Read more
The following is a profile of the Honorable Autumn D. Spaeth, United States Magistrate Judge for the Central District of California. Judge Spaeth met with members of the Business Litigation Committee and the Insolvency Law Committee in her chambers at the Ronald Reagan Courthouse in Santa Ana and discussed her personal and professional background, her appointment as a Magistrate Judge and her experience on the bench. Read more

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