California Lawyers Association

Case Updates

All case updates written and distributed by the CLA sections

Debtors Beware: Creditor’s Attorneys’ Fees for Prosecuting Section 523 Action May Also Be Non-Dischargeable, Regardless of the Amount Read more
Ruling in a patent case from the Northern District of California, the Federal Circuit affirmed the district court's denial of a motion to seal documents and a subsequent motion for reconsideration based on movant's failure to narrowly tailor the request to seal and a lack of a compelling reason for the court to do so. Read more
Court-appointed receiver for entities that operated a Ponzi scheme did not adequately allege fraudulent transfer claims where the complaint did not allege the transfer of funds to third parties. Read more
Court certified a direct appeal to the Third Circuit to resolve whether the bankruptcy court had subject matter jurisdiction over a lawsuit by the reorganization plan's buyer's financial advisor to enforce against the reorganized debtor the fee provision of a contract that was signed before the effective date by a person who became an officer of the reorganized debtor only on the effective date. Read more
On September 28, 2020, on an issue of first impression, a federal district court in Louisiana held that the TCPA’s autodialer and pre-recorded message provision (the “automated-call ban”) is unconstitutional as applied to any calls made between November 2015 and July 6, 2020. Read more
Creditor, whose security interest lapsed prepetition when debtor changed its name, was unsecured because creditor failed to timely re-perfect its interest even though it had viable options to do so. Read more
Physician may pursue whistleblower suit—alleging hospital’s exclusive staffing agreement was retaliatory—without first seeking writ relief. Read more
A New Mexico bankruptcy court has held that the cross-collateralization provision in each of debtor's second and third loan agreements with a credit union was sufficient to render a vehicle–which was purchased by debtor and her spouse with their first loan from the credit union, and which secured this first loan– collateral for second and third loans. Read more
In Produce Pay, Inc. v. FVF Distributors Inc., 2020 WL 3448384 (S.D, Cal. 6/24/20) the United States District Court held that the rights and remedies of a seller of produce to collect from a buyer under the Perishable Agricultural Commodities Act (“PACA”) 7 U.S.C. §§ 499a-499t could be assigned to a commercial finance company factoring the seller’s accounts, allowing the finance company to sue the buyer and its principals in tort, even in a case where the buyer mistakenly paid the account in full to the seller, and not to the assignee. Read more
Third Circuit certifies a critical question to the Pennsylvania Supreme Court: "Under Pennsylvania law, is an e-commerce business, like Amazon, strictly liable for a defective product that was purchased on its platform from a third-party vendor, where the product was neither possessed nor owned by the e-commerce business. Read more

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