Business Law

Consumer Financial Services Committee’s Chair Jeanette Quick was recently named a 2019 Eisenhower Zhi-Xing Fellow. As part of this fellowship, Jeanette will spend June in China, meeting with policymakers, technology leaders, and regulators to discuss fintech, financial access and inclusion, and public-private partnerships to bring fair and safe credit and banking products to the underserved. Congratulations to Jeanette on her initiation into this prestigious fellowship! Read more

2017-2018 BLS Chair Uzzi O. Raanan was recently named Century City Bar Association “Bankruptcy Lawyer of the Year.” Awards will be presented at the CCBA’s 51st Annual Installation Banquet and Awards Ceremony at the Intercontinental Hotel in Century City on April 30, 2019. Congratulations to Uzzi on this well-earned recognition. Read more

As we enter Spring, we are approaching the mid-point of the State Bar/California Lawyers Association year – the perfect time to examine our progress on the goals formulated by the Business Law Section’s Executive Committee and Standing Committee leadership at the start of the year to make membership in the BLS more rewarding as a part of the CLA. Read more

Steven O. Weise PROSKAUER ROSE LLP Los Angeles, CaliforniaTeresa Wilton Harmon SIDLEY AUSTIN LLP Chicago, IllinoisJohn F. Hilson UCLA SCHOOL OF LAW Los Angeles, CaliforniaStephen L. Sepinuck GONZAGA UNIVERSITY SCHOOL OF LAW Spokane, WashingtonEdwin E. Smith MORGAN, LEWIS & BOCKIUS LLP New York, New York and Boston, Massachusetts August 1, 2018 I. PERSONAL PROPERTY SECURED TRANSACTIONS II. REAL PROPERTY SECURED TRANSACTIONS III. GUARANTIESIV. FRAUDULENT TRANSFERS AND VOIDABLE TRANSACTIONS V. CREDITOR AND BORROWER LIABILITY VI. U.C.C. – SALES AND PERSONAL PROPERTY… Read more

In re Simplexity, LLC, 2017 WL 65069 (Bankr. D. Del. 2017) – The Chapter 7 trustee for a limited liability company stated a cause of action against the company’s principals for breach of their fiduciary duties – despite the exculpatory clauses in the debtor’s operating agreement – for their failure to file bankruptcy until after the company’s secured creditor swept the company’s deposit accounts and left the company with no funds to pay the WARN Act claims of its employees. Read more

Norcia v. Samsung Telecommunications America, LLC, _ F.3d _ (9th Cir. 2017) – The court concluded (applying California law) that a customer had not “agreed” to an arbitration provision with a cell phone manufacturer included in an in-the-box brochure. The court first considered whether it was analogous to a shrinkwrap agreement. Read more

Letters of Credit B.       Investment Securities - JPMorgan Chase Bank, N.A. v. Herman, _ A._ _ (Conn.App. 2017) – Under UCC § 8-112 a judgment creditor of a holder of a security entitlement properly levied against the securities intermediary where the securities account was maintained. The court rejected the judgment debtor’s argument that the judgment creditor should have levied on DTC, where the physical certificate was located. C.       Documents of Title - 2017-2018 Commercial Law Developments I. PERSONAL PROPERTY SECURED TRANSACTIONS II. REAL… Read more

Colonial Funding Network, Inc. v. Epazz, Inc., 16 Civ. 5948, _ F.Supp. 4th (S.D.N.Y 2017) – Under New York law, there cannot be usury if there is no “loan or forbearance.” For there to be a loan or forbearance, the amount must be “repayable absolutely.” Read more

n re Escalera Resources Co., 563 B.R. 336 (Bankr. D. Colo. 2017) – Because metered electrical energy is a “good” within the meaning of the UCC and Bankruptcy Code § 503(b)(9), the utility that provided electricity to the debtor during the 20 days preceding bankruptcy was entitled to administrative expense priority for the price of the electricity Read more

A.      Regulatory and Tort Claims – Good Faith, Fiduciary Duties, Interference With Prospective Economic Advantage, Libel, Invasion of Privacy - Roy Allan Slurry Seal v. American Asphalt South, _ Cal.5th _ (2017) – For a plaintiff to state a cause of action for intentional interference with prospective economic advantage, the plaintiff must allege that it had a preexisting economic relationship with a third party with probable future benefit that preceded or existed separately from defendant’s interference. In the particular case… Read more