Business Law

On January 21, 2020, the California Court of Appeal, Second Appellate District, in the case of Techno Lite, Inc. v. EMCOD, LLC, 2020 Cal. App. LEXIS 41, in the portion of the decision certified for publication, upheld the trial court and rejected the defendants’ contention that they could not be liable for fraud because their false promise not to compete against their employer while employed was void because the noncompete agreement violated section 16600 of the California Business and Professions Code prohibiting restraints of trade. Read more

On January 23, 2020, the U.S. Army Corps of Engineers and the U.S. Environmental Protection Agency finalized a final rule defining the scope of waters federally regulated under the Clean Water Act. The rule, called the Navigable Waters Protection Rule, is the second step in a comprehensive, two-step process intended to review and revise the definition of “waters of the United States” consistent with the Executive Order signed on February 28, 2017, “Restoring the Rule of Law, Federalism, and Economic Growth by Reviewing the ‘Waters of the United States’ Rule.” Read more

The Agribusiness Committee of the California Lawyers Association’s Business Law Section will kick off its 2020 Agriculture Tour series with the California Farm Bureau Federation’s Ag Issues Update Meeting, to be held in Sacramento on Friday, February 21, 2020. Read more

In G&G Prods., LLC v. Cecchi Gori Pictures (In re Cecchi Gori Pictures), No. 18-1042, 2019 Bankr. LEXIS 1062, 2019 WL 1448116 (9th Cir. BAP Mar. 29, 2019), the United States Bankruptcy Appellate Panel for the Ninth Circuit, in an unpublished memorandum pertaining to a fraudulent transfer action, reversed a judgment granting debtors’ partial summary judgment motion and ordering turnover of the transferred property. The BAP concluded that the bankruptcy court improperly excluded parol evidence pertaining to the value given in exchange for the transfer, which evidence, if properly considered, created a triable issue of material fact such that the partial summary judgment was improperly granted. Read more

Local Initiative Health Care Authority of Los Angeles County (LA Care) operates a managed care plan that provides health coverage under Medi-Cal, California’s Medicaid program. Dignity Health operates Northridge Hospital, which did not have an inpatient service contract with LA Care during the relevant time period. Dignity provided inpatient poststabilization services to LA Care patients and sought reimbursement from LA Care at its full rates. LA Care paid Dignity at lower state-set rates known as “All Patient Refined Diagnosis Related Group” (APR-DRG). Dignity sued, alleging that LA Care’s failure to pay its full rates breached an implied contract and violated Health and Safety Code sections 1262.8 and 1371.4. Dignity moved for summary judgment, arguing that the inpatient treatment constitutes “managed care inpatient days,” which is exempt from APR-DRG rates under Welfare and Institutions Code section 14105.28, subdivision (b)(1)(B) (section 14105.28). Read more

In Ritzen Group, Inc. v. Jackson Masonry, LLC, 589 U.S. ___, No. 18-938 (Jan. 14, 2020), the U.S. Supreme Court unanimously held that an order unreservedly granting or denying a motion for relief from the automatic stay is a final, appealable order. However, at least as to orders denying stay-relief motions, a footnote at the end of the opinion undermines the Court’s ruling. To read the full decision, click here. Read more

After California passed the landmark Consumer Privacy Act, tech executives began looking to Washington for a federal solution that might preempt the California law before it went into effect on January 1, 2020. Yet only recently have we seen any concerted push for action in Washington. Read more

The number of electronic device searches at U.S. ports of entry has increased significantly. Last year, Customs and Border Control (CBP) conducted more than 33,000 searches, almost four times the number from just three years prior. Read more

Please join the Nonprofit Organizations Committee for a program on the topic of “Ethical Issues and Pitfalls for Non-Profit Boards and Their Advisors.” Our presenters are Carol A. Bradford, Elizabeth Bluestein and Louis E. Michelson. The following topics will be discussed: Who is the Client? Avoiding the Representation of Adverse Interests; Payment of Fees by Third Party and Competency and Independent Judgment. This presentation was recently given by the presenters at the 2019 Annual Meeting of the California Lawyers Association in Monterey, California. Read more

A recent amendment to the California Consumer Privacy Act (CCPA) requires that data brokers register annually with the Office of the California Attorney General. The AG now has a page to register on its website. Read more