California Lawyers Association

Business Law Commercial Transaction Committee

Updates from the Business Law Commercial Transaction Committee

In a ruling contrary to Ninth Circuit law, a California Court of Appeal recently held that the automatic stay in a bankruptcy proceeding did not prevent a judgment creditor from renewing a judgment while the case was pending, but Bankruptcy Code section 108(c) extended the time to renew until 30 days after the stay was terminated. Read more
The Delaware Court of Chancery (the ‚ÄúCourt‚ÄĚ) recently ruled that in appropriate circumstances reverse veil piercing was an available remedy for a judgment creditor who could not collect directly from the judgment debtor, in this particular instance allowing collection activities against subsidiaries of the corporate judgment debtor. Read more
In Carrozza v. CVS Pharmacy, Inc., 992 F.3d 44 (1st Cir. 2021), the First Circuit held that under Massachusetts law, a pharmacist correctly filling a prescription could not be held liable for damages suffered by the patient under a claim for breach of implied warranty under the Uniform Commercial Code. Read more
Finding that prior authority to the contrary had been overruled by subsequent United States Supreme Court and state court decisions, a California Court of Appeal recently held that California’s Rosenthal Act (similar to but broader than the federal Fair Debt Collection Practices Act (FDCPA)) can apply to a nonjudicial foreclosure. Read more
A Bankruptcy Court in the Eastern District of New York recently held that a litigation finance company did not hold an effective assignment of a debtor’s interest in settlement proceeds that did not exist on the petition date nor did it have a secured claim, even in funds subject to debtor’s exemption. Read more
In Carrozza v. CVS Pharmacy, Inc., 992 F.3d 44 (1st Cir. 2021), the First Circuit held that under Massachusetts law, a pharmacist correctly filling a prescription could not be held liable for damages suffered by the patient under a claim for breach of implied warranty under the Uniform Commercial Code Read more
Finding that prior authority to the contrary had been overruled by subsequent United States Supreme Court and state court decisions, a California Court of Appeal recently held that California’s Rosenthal Act (similar to but broader than the federal Fair Debt Collection Practices Act (FDCPA)) can apply to a nonjudicial foreclosure. Read more
The United States Bankruptcy Court for the Western District of Louisiana recently ruled in a preference action against an insurance premium financier that (1) the financier’s lien on unearned premiums was perfected under Louisiana law and (2), resolving a split in authority in favor of the financier, it was sufficient to defeat a preference if the financier was fully secured on the date of each transfer, even if not fully secured on the petition date. Read more
The United States Bankruptcy Court for the Eastern District of Washington upheld several different release and exculpation clauses in confirming a Chapter 11 plan over the objection of the United States Trustee. Read more
The United States Court of Appeals for the Third Circuit recently ruled that a triangular arrangement which allowed for set off of money the debtor owed to a company’s affiliate against what the parent company owed to the debtor was not allowed under section 553 because the necessary mutuality was not present, despite the fact that such arrangement was enforceable as a set off under state law Read more

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