California Lawyers Association

Case Updates

All case updates written and distributed by the CLA sections

Bankruptcy court did not abuse its discretion in denying an individual chapter 11 debtor's motion to voluntarily convert to chapter 7. Read more
An individual was eligible to be a debtor in a SBRA Subchapter V chapter 11 case despite the fact that he was a wage earning employee of a company that was unrelated to the debtor's failed corporate business on the petition date. Read more
In a preference action against an insurance company financier, the financier's lien on unearned premiums was perfected under Louisiana law and was sufficient to defeat a preference if the financier was fully perfected on the date of each transfer, even if not fully secured on the petition date. Read more
Court upheld several different release and exculpation clauses in confirming a chapter 11 plan over the objection of the U.S. Trustee. Read more
The Court of Appeal affirmed the trial court's order denying a petition for writ of mandate challenging respondent's adoption of a mitigated negative declaration regarding a project to replace an existing bridge. The Court of Appeal held that petitioners' framing of the fair argument test in terms of the project having "potentially significant impacts on resident safety and emergency evacuation" was erroneous. Read more
In Carrozza v. CVS Pharmacy, Inc., 992 F.3d 44 (1st Cir. 2021), the First Circuit held that under Massachusetts law, a pharmacist correctly filling a prescription could not be held liable for damages suffered by the patient under a claim for breach of implied warranty under the Uniform Commercial Code. Read more
In a recent unpublished memorandum opinion, the United States Bankruptcy Appellate Panel of the Ninth Circuit (BAP) ruled that an interest of a debtor in a limited liability company which held title to the residence in which the debtor resided (the “Residence”) was not sufficient to support a homestead exemption in the Residence despite a state court ruling that the LLC was the reverse alter ego of the debtor. Read more
In People's Bail Bonds v. Dobos (In re Dobos), 830 F. App’x 928 (9th Cir. 2020) (unpublished), the United States Court of Appeals for the Ninth Circuit agreed with the Ninth Circuit Bankruptcy Appellate Panel’s affirmance of a bankruptcy court’s order dismissing a plaintiffs’ adversary complaint. Read more
Finding that prior authority to the contrary had been overruled by subsequent United States Supreme Court and state court decisions, a California Court of Appeal recently held that California’s Rosenthal Act (similar to but broader than the federal Fair Debt Collection Practices Act (FDCPA)) can apply to a nonjudicial foreclosure. Read more
A Bankruptcy Court in the Eastern District of New York recently held that a litigation finance company did not hold an effective assignment of a debtor’s interest in settlement proceeds that did not exist on the petition date nor did it have a secured claim, even in funds subject to debtor’s exemption. Read more

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