Business Law

Acute care hospital needed no additional license or approval to operate drug detoxification center. Read more

David Gurnick, who recently passed away unexpectedly was a long time member of the Business Law Section.  He previously served on the BLS’ Franchise Law Committee. Read more

The New York Court of Appeals (the Court) recently held that under the Uniform Commercial Code (UCC) the holder of an exercisable security interest in a borrower’s receivables is an “assignee” under UCC § 9-406, such that once the holder gives notice to the borrower’s account debtor, the account debtor must pay the holder, not the borrower, to receive credit for the payment.  Read more

It is a great honor to take the helm of the Business Law Section for its 46th year. I am at once excited and grateful, to return to more physical, in-person meetings, as well as face-to-face networking, programs and events! Read more

Courtesy of CEB, we are bringing you selected legal developments in areas of California business law that are covered by CEB’s publications. This month’s feature is from the January 2023 update to Organizing Corporations in California. Read more

Addressing a matter of first impression in the Fifth Circuit, the United States Bankruptcy Court for the Western District of Texas (the “Court”) in Avion Industries, LLC v. GFS Indus., LLC, (In re GFS Industries, LLC) 2022 Bankr. LEXIS 3199; 2022 WL 16858009 (Bankr. W.D. Tex., San Antonio Div. November 10, 2022) recently dismissed an adversary proceeding under Federal Rule 12(b)(6), holding that “corporate debtors electing to proceed under Subchapter V of Chapter 11 are not subject to complaints to determine dischargeability pursuant to [section] 523(a)” and that section 727 is inapplicable in Subchapter V cases.  Read more

The United States Bankruptcy Court for the Western District of Missouri (“the Court”) recently ruled that non-exempt equity in a residence which appreciates in value after the petition date of a chapter 13 case but before the case is converted to chapter 7 accrues for the benefit of the estate, not the debtor, joining a slight minority of courts weighing in on the issue.  In re Goetz, 2022 Bankr. LEXIS 3188, 2022 WL 16857109 (Bankr. W.D. MO. November 10, 2022).  Read more

Telephone Communications Privacy Act claims may be within the coverage for personal injury claims arising from the “publication, in any manner, of material that violates a person’s right of privacy” if consistent with the insured’s reasonable expectations. Yahoo v. National Union Fire Insurance Company of Pittsburgh, PA (2022) 14 Cal.5th 58. Read more

Effective January 1, 2023, most California employers will now need to comply with expanded rules for disclosing pay range information to job applicants and employees and new recordkeeping and reporting requirements.  Senate Bill 1162 (“SB 1162”) was signed into law in September 2022, with the aim of improving pay equity, and carries with it some potentially stringent penalties for employers who fail to comply.  Read more

In In re Project Restore, LLC, 2022 Bankr. LEXIS 2868, 2022 WL 6233552 (Bankr. M.D. Tenn. 2022) (“Project Restore”), the United States Bankruptcy Court for the Middle District of Tennessee (the “Bankruptcy Court”) rejected the debtor’s claims that the involuntary petition against it had to be submitted to arbitration because a clause in each of its contracts with the petitioning creditors mandated arbitration of disputes and that in any case the Bankruptcy Court should abstain from hearing the petition in deference to the federal policy of encouraging arbitration. Read more