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Cal. Civ. Code § 1459.5. Ruled Unconstitutional

On July 12, 2019, Governor Gavin Newsom signed into law Cal. Civ. Code § 1459.5.  The purpose of enacting Section 1459.5 was to legislatively overturn Lafferty v. Wells Fargo Bank, N.A. (2018) 25 Cal.App.5th 398 (“Lafferty”), which held that attorneys’ fees were not recoverable against a holder by a consumer for claims brought pursuant to the Federal Trade Commission’s (“FTC”) Holder Rule. (16 CFR § 433.2 [“FTC Holder Rule”].)  Section 1459.5 […]

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Auto Dealerships Are Essential

On March 19, 2020, Governor Gavin Newsom issued Executive Order N-33-20 (“Order”) which effectively shut down most of California in response to the COVID-19 pandemic.  In issuing the Order, many licensed California dealers were left guessing as to whether the automotive sales industry was essential such that it could continue to operate.  On April 28, 2020, the State Public Health Officer clarified the list of Essential Critical Infrastructure Workers.  The […]

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California Eviction Relief For Commercial Tenants

In light of the unprecedented national emergency caused by the COVID-19 pandemic, many commercial tenants in California, and the rest of the country, are facing difficulties in paying their rent.  At the federal level, three stimulus packages have been passed which aimed to ease the economic burden caused by the nearly nationwide shutdown. However, the funds made available under those packages have been slow to arrive.  In the meantime, many landlords […]

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Actions To Take During COVID-19 Shutdown

Given these unprecedented events surrounding the COVID-19 pandemic, many small businesses are left wondering how they will deal with a number of issues. In all likelihood, the two most pressing issues facing small businesses are their employees and their liquidity. In light of recent federal legislation, there are certain actions you can take now to ease the pain caused by the economic downturn. For employees who are working in a non-essential industry […]

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Failure to Pay Arbitration Fees Can Land You in Court

Starting this year, there will be new rules as to how payments must be made in consumer and employment arbitrations.  Effective as of January 1, 2020, Cal. Code Civ. Proc. §§ 1281.97, 1281.98, and 1281.99 proscribe hard deadlines for the payment of arbitration fees in consumer and employment arbitrations and provide remedies for consumers and employees in instances where businesses fail to comply with their payment obligations.  Given these changes, […]

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New Bill Signed Into Law Could Possibly Affect All Finance Companies

On July 12, 2019, Governor Gavin Newsome signed a bill which enacted Cal. Civ. Code § 1459.5. The purpose of enacting Section 1459.5 was to legislatively overturn Lafferty v. Wells Fargo Bank, N.A. (2018) 25 Cal.App.5th 398 (“Lafferty”), which held that attorneys’ fees were not recoverable against a holder by a consumer for claims brought pursuant to the Federal Trade Commission’s (“FTC”) Holder Rule. (16 CFR § 433.2 [“FTC Holder Rule”].)  […]