California Lawyers Association

Business Law

Updates and events from the Business Law Section

Insurance Code section 533 does not bar coverage for employment retaliation claims under Labor Code section 1102.5, subdivision (c).  City of Whittier v. Everest National Insurance Co. (2023) 97 Cal.App.5th 895. Read more
The United States Bankruptcy Court for the Eastern District of Wisconsin (the Court) declined to allow a chapter 13 debtor to cure a prepetition arrearage on a house which had been owned by the debtor’s parents.  Read more
The following regulatory information may be of interest to attorneys practicing insurance law. This information is current as of January 16, 2024. Read more
The Ninth Circuit Bankruptcy Appellate Panel (the BAP) recently ruled in a published opinion that a chapter 13 debtor may not sell co-owned property free and clear of debt secured by which the nondebtor’s interest in the property. In re Groves, 652 B.R. 104 (B.A.P. 9th Cir. 2023). Read more
Since 1872, California has favored open competition and declared, with limited exceptions, that contractual provisions restraining an individual from ”engaging in a lawful profession, trade, or business” are void.  California Business & Professions Code § 16600. Read more
On March 28, 2023, the U.S. District Court for the District of Arizona affirmed a bankruptcy court’s decision to allocate sale proceeds pro rata between the tax-and-interest component and the penalty component of a tax lien avoided under Bankruptcy Code § 724(a). Matter of Freeman, No. 3:20-BK-10338-DPC, 2023 WL 2665735 (D. Ariz. Mar. 28, 2023). Read more
United States Supreme Court held that Congress unambiguously abrogated tribal sovereign immunity in the Bankruptcy Code because federally recognized Indian tribes are covered under the Code’s definition of a “governmental unit.”  Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, 143 S. Ct. 1689 (2023). Read more
In a published opinion arising from a Ponzi scheme bankruptcy case, the Seventh Circuit Court of Appeals (the Court) ruled that a transaction whereby a second factor paid off the first factor and received the accounts which were the first factor’s collateral property was not avoidable as a preferential or fraudulent transfer because it was not a transfer of “an interest of the debtor in property.”  Read more
California’s new climate disclosure requirements, Senate Bill 253 (SB 253) and Senate Bill 261 (SB 261), could significantly impact California’s agriculture industry. California Governor Gavin Newsom signed the bills into law on October 7, 2023, intending to increase climate transparency and accountability. The laws are the first of their kind in the United States. They will require companies doing business in California to disclose their greenhouse gas emissions and climate-related financial risks. Together, the laws will significantly affect companies across the globe who conduct business in the state, which is poised to become the world’s fourth-largest economy. Read more
In Medley, the United States Bankruptcy Appellate Panel for the Ninth Circuit (“BAP”) affirmed the bankruptcy court’s decision that a factoring agreement created a loan in favor of Precision secured by the debtor’s real estate sales commissions, and that Precision was not a “factor” that owned the debtor’s right to receive the commission. Read more

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