Business Law

On September 12, 2024, Governor Gavin Newsom signed into law AB 3279, one of the more significant bills enacted during this legislative session having a direct impact on financial institutions’ operations, including banks, relating to a client trust account (“CTA”) maintained with a bank by a licensed member of the California State Bar. Due to recently publicized malfeasance by a Bar member, resulting in the alleged misapplication of client funds, one core purpose of this bill is to enable the… Read more

Prepared by Michelle Emeterio A November 12, 2024 court order in S.C. v. Hilton Franchise Holding LLC, No. 2:23-CV- 02037-APG-DJA, 2024 WL 4773981, at *1 (D. Nev. Nov. 12, 2024) denied defendant Hilton Franchise Holding’s motion to dismiss sex trafficking claims. Claims Plaintiff “S.C.” brought sex trafficking claims against Hilton Franchise Holding, LLC, hotel operators, and several individuals, alleging the defendants participated in or benefitted from sex trafficking S.C. at a Las Vegas hotel. The claims were brought under: The… Read more

With the increasing use of artificial intelligence in many aspects of business operations, both buyers and sellers of AI-enabled applications (or companies using AI applications) should review and address the following issues as part of their due diligence process. Generally, the buyer or seller will need a multi-disciplinary team to do so. What AI applications are being used or developed by the target, and how are they being used (e.g., in human resources, marketing, or software development)? Are there any intellectual property… Read more

Christopher Hughes While several significant events have transpired in the last couple months (including holding our Winter Leadership Conference), this first message will focus on the transition that took place in September/October while the next message will focus on the Winter Leadership Conference.  For this message, I want to start with a note of gratitude. First, I want to thank Cathy Gawne, our outgoing Chair, whose leadership guided us through a very challenging year.  Without her at the helm this… Read more

FSC Committee Members and Friends, Below are the CFSC Meeting Minutes for October 16, 2024 Attendance:Co-Chair: Stefan Lawrence; Co-Chair: John Kimble; ExCom Liaison: Mark Moore; ExCom Liaison: Dan Wheeler; Section Manager: Johnny Brooks; Members: Julie Greenfield, Lauren Frank, Ted Kitada Administrative Matters:• The attendees introduced themselves• Stefan Lawrence will be acting as Committee Secretary• John Kimble will be the Committee’s Treasurer• New member Julie Greenfield agreed to be the Committee’s Programs Chair• New member Lauren Frank agreed to be the… Read more

October 21, 2024 Dear constituency list members of the Insolvency Law Committee, the following is a case update written by Patrick Costello, analyzing In re Point 360, 2024 WL 2862577 (9th Cir. June 6, 2024), a recent case of interest: SUMMARY In In re Point, the Ninth Circuit affirmed the ruling of the District Court holding that a venture loan secured debt was not subject to subordination pursuant to 11 U.S.C. § 510(b) simply because the loan terms included “equity… Read more

October 18, 2024 Dear constituency list members of the Insolvency Law Committee, the following is a case update written by Hale Andrew Antico, Chief Counsel of Antico Law Firm, analyzing In re O'Gorman, No. 23-60005, 2024 WL 4113544 (9th Cir. Sept. 9, 2024), a recent case of interest: SUMMARY In In re O’Gorman, the Court of Appeals for the Ninth Circuit upheld a bankruptcy court decision granting summary judgment to the trustee who sought to avoid a fraudulent transfer by… Read more

Please join the Nonprofit Organizations Committee for a program on the topic: Differences in Organizational Structures of Religious Organizations, to be presented by Lisa A. Runquist. Read more

This webinar will provide an overview of the California AG approval process for nonprofit health facility transactions, including the statutory authority for the process, a step-by-step summary of the process, practical tips for navigating the process, and select case studies. Read more

September 30, 2024 Dear constituency list members of the Insolvency Law Committee, the following is a case update by Summer Shaw analyzing In re Buettner, 654 B.R. 927 (Bankr. E.D. Cal. 2023), a recent case of interest: SUMMARY In In re Buettner, Chapter 13 debtors were compelled to file suit to enforce California Civil Code § 2941, which requires a lender to reconvey a deed of trust within 30 days of payoff. The Bankruptcy Court for the Eastern District of… Read more