Business Law

The CFSC will hold its next regular monthly meeting on Wednesday, February 19, 2025, at 11:00 a.m. PT. The meeting will be by Zoom:  https://us06web.zoom.us/j/81366101639?pwd=CRTRJA5BfUgjQS0c6jdA7w6R8PWhXj.1 Meeting ID: 813 6610 1639Passcode: 807629 Agenda Protecting Those Who Serve: Consumer Protection Efforts on Behalf of the Military Community Members of the armed forces and their families make immense sacrifices to defend our country. Yet, like all consumers, they are potential targets for unlawful, unfair, abusive, and deceptive trade practices and financial scams. In… Read more

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Charlie L. v. Kangavari (Jan. 2, 2025, B327714) __ Cal.App.5th __, 2025 WL 23756 Statute imposing stricter expert witness qualifications in hospital emergency care situations applies to physicians who remotely consult in treatment of ER patients. Charlie L. was brought to a hospital’s emergency department, where the attending physician issued “stat” orders for an X-ray and ultrasound of Charlie’s abdomen. Dr. Peyman Kangavari, an on-call radiologist working remotely, promptly reviewed the images and reported his conclusions to the attending physician,… Read more

Hospitals have no duty to disclose to patients emergency room fees other than those specified by statute. Taylor Capito filed a class action lawsuit against Regional Medical Center San Jose (Regional) after receiving emergency room services. She alleged that Regional violated the Unfair Competition Law (UCL) and the Consumer Legal Remedies Act by failing to give her sufficient notice of an Evaluation and Management Services (EMS) fee that it charged. The trial court sustained Regional’s demurrer without leave to amend.… Read more

Kaweah Delta Health Care District v. Becerra, __ F.4th __, Nos. 22-55157 & 23-55209, 2024 WL 5063933 (9th Cir. Dec. 11, 2024) HHS Secretary may not manipulate wage-index for hospital reimbursement rates to assist low-wage hospitals recruit and retain staff. A group of California hospitals sued the Secretary of Health and Human Services (HHS) challenging a policy designed to increase Medicare reimbursements to hospitals operating in geographic areas (primarily rural) where wages are generally low (so-called “low-wage hospitals”). The Medicare… Read more

October - December 2024 APPELLATE LAW UPDATE The following published decision may be of interest to attorneys practicing insurance law: CALIFORNIA COURT OF APPEAL Insurance broker who helped the plaintiff simultaneously procure both a Farmer’s policy and a FAIR Plan policy was not the actual or ostensible agent of Farmer’s with respect to the FAIR Plan policy. Hughes v. Farmer’s Insurance Exchange (2024) 107 Cal.App.5th 73. Plaintiff obtained two insurance policies covering her home: a FAIR Plan policy covering fire… Read more

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