Business Law Insolvency Law Committee

In Williams v. 3620 102nd Street, Inc, 53 Cal. App. 5th 1087 (2020)(“Williams”), the California Court of Appeal ruled that an arbitration clause in a residential lease was unenforceable under Cal. Civ. Code § 1953(a)(4) and that the Federal Arbitration Act did not apply. Read more

In a lawsuit contesting the foreclosure of a borrower’s home, the California Court of Appeal held that defendants were entitled to their reasonable attorney’s fees and costs in successfully defending against the borrower’s tort claims pursuant to Civil Code § 1717. Yoon v. Cam IX Tr., 60 Cal.App.5th 388 (2021 Read more

In Guo v. Moorpark Recovery Serv., LLC, 60 Cal. App. 5th 745, 749-50 (2021), the California Court of Appeal, First Appellate District held that a judgment identifying a prevailing party and stating they were “entitled” to recover their costs of suit and attorney fees was sufficient to justify an award of post-judgment fees and costs under section 685.040 of California's Enforcement of Judgment Law (Cal. Code Civ. Proc. §§ 680.010-724.260), even where the judgment did not provide a specific amount for fees and costs. Read more

In In re Cuker Interactive, LLC, No. BR 18-7363-LA11, 2020 WL 7086066 (Bankr. S.D. Cal. Dec. 3, 2020), Judge Louise Adler of the Bankruptcy Court for the Southern District of California, addressing an issue where the courts nationwide are split, held that unsecured creditors of a solvent debtor in Chapter 11 are only entitled to postpetition interest at the federal judgment rate, rather than at the potentially higher contract rate or state judgment rate. 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

Triangular arrangement which allowed for set-off of money the debtor owed to a company's affiliate against what the parent company owed the debtor was not allowed under Bankruptcy Code section 553 because the necessary mutuality was lacking, even though the set-off was allowed under applicable state law. Read more

Local bankruptcy rules permitting the grant of extensions of time to file objections to claimed exemptions and to file nondischargeability complaints contradicted the requirement of showing "cause" under the Federal Rules of Bankruptcy Procedure and, therefore, the local rules were required to be eliminated. Read more

Court awarded attorneys' fees to Chapter 11 debtor which prevailed on a motion to assume a commercial real property lease. Read more

Court denied enforcement of a clause limiting Amazon's liability under its service agreement, ruling that when the agreement was executed damages were not ascertainable and, thus, enforcing the clause would violate public policy. Read more

When a state court defendant has stipulated to facts supporting a state court fraud judgment, those same stipulated facts will support a nondischargeability judgment under Bankruptcy Code section 523(a)(2)(A) based on collateral estoppel. Read more