California’s Newest Corporate Form Promotes Social Objectives

Traditionally, corporations have conducted business with one purpose in mind - to make money. In fact, corporate directors have a fiduciary duty to shareholders to make decisions aimed at maximizing profits. If a director, no matter how worthy his or her intentions, puts a societal objective before shareholder returns, he or she faces potential liability for breach of fiduciary duty.

New Law Cracks Down on Misclassifying Workers as Independent Conractors

Recently, Governor Brown signed into law multiple bills that will have an impact on California employers. One of the most significant soon-to-be laws is summarized below.

OMG: Text Messages Can Be Used Against You

Text messaging is rapidly becoming one of the most popular means of communication - for both personal and business purposes. Not surprisingly, text messages are emerging as critical evidence in a variety of lawsuits. Although often thought of as evidence in just criminal investigations (e.g., Kobe Bryant's sexual assault case), the use of text messages can also be key in civil lawsuits.

Litigating In Your Own Backyard - Winning before Filing

Any business that has been forced to file or defend a lawsuit knows that the location of the lawsuit has a profound impact on the case. Having to litigate in a state or county other than where your business is located causes many concerns.

Sending Employees on Remote Assignments - Which Wage & Hour Laws Apply?

In Sullivan v. Oracle Corp., plaintiffs Donald Sullivan, Deanna Evich and Richard Burkow worked as "instructors" for Oracle, a company headquartered in California. While employed by Oracle, Sullivan and Evich resided in Colorado and Burkow resided in Arizona. The three employees worked primarily in their home states, although they worked in California and other states on occasion.

Managing Harmful Online Reviews

Like it or not, online reviews have a major impact on today's businesses - especially small businesses relying on word of mouth to promote their products. Just as easily as rave reviews can kick start a company, offensive reviews can destroy a company's reputation. Knowing how to handle this type of reputational harm is becoming a key to success for any business.

NB Successfully Resists Effort to Drag Clients to Court in Colorado

Colorado Court Dismisses Case for Lack of Jurisdiction

NB's clients, a California corporation and two of its principals, were sued in Denver, Colorado by a Colorado corporation alleging that NB's clients stole "trade secret" information. While NB's clients certainly had substantive defenses to the claims, NB believed the Colorado court did not have "personal jurisdiction" over NB's clients.

NB Wins Lawsuit Against General Contractor

Complete Victory After Bench Trial, Contractor Hit With Punitive Damages 

NB's client started up a limited liability company to completely remodel an existing apartment complex. After running into a number of snags along the way, the general contractor hired to complete the remodel made off with the construction drawings and permits, leaving the project unfinished and in severe debt and leaving NB's client in a lurch.

Employers Take Heed - "Honoring" a Non-Compete Agreement May Subject Your Company to Liability

Has a competitor ever demanded that you not hire its former employee? Did you know that honoring a non-compete agreement could subject your company to liability? Nowadays in California, both former and prospective employers must be well versed in the law of non-compete agreements or risk facing legal action.

Employers Must take Duty to Investigate Discrimination and Harassment Claims Seriously

Under California law, employers have an independent duty to promptly and thoroughly investigate and take reasonable steps to prevent and remedy harassment and discrimination. When companies fail to handle discrimination and harassment claims properly, it can cost them big. Ultimately, an improperly handled claim can result in the employer being held liable for its supervisors' or employees' misconduct.

NB Wins Verdict on Warranty Claim Against Window Retailer

Jury Awards Entire "Removal and Replacement" Damages

NB's clients paid over $100,000 for 14 Italian steel windows for their custom house in Poway. Within a few months of installation, the windows began to leak. The window retailer made several attempts to repair the windows but refused to replace them. NB sued the retailer for breach of the implied warranty of "merchantability."

The Writ of Attachment - A Valuable Prejudgment Remedy

A writ of attachment is a prejudgment remedy that allows a creditor (plaintiff) to obtain a lien on the debtor's assets until final adjudication of the claim sued upon. In essence, a writ of attachment permits an unsecured creditor to become a secured creditor, gaining priority over defendant's other creditors. It is a powerful litigation tool which can facilitate a prompt settlement and assure the ability to collect on an eventual judgment.

The Power of Attorney’s Fees Provisions

With the cost of litigation today, the reality is that many claims, no matter how clear cut, may not be worth pursuing after comparing the cost of enforcing the claim to the potential recovery.

The Dangers of Misclassifying Workers as Independent Contractors

Labeling your workers as "independent contractors" may seem an appealing way to avoid certain operating costs, but many employers do not realize the dangers associated with misclassifying employees to save a few dollars in the short term.

NB Attorneys Successfully Defend Premises Liability Claim

Also Recover Judgment for Defense Costs from Co-Defendant

Following an assault at a parking lot in downtown San Diego, NB's client - the operator of the parking lot, faced the potential of extensive tort liability.  NB's client was sued under the theories of negligence and premises liability.

Employers Should Not Necessarily Rely on DLSE's Interpretation of the Law

The Department of Industrial Relations, Division of Labor Standards Enforcement ("DLSE") publishes a web site which contains a variety of useful and accurate information for California employers and employees.  However, blind faith in the information published on this site may prove imprudent and costly to California employers.

An Efficient Way to Litigate?

California businesses know that litigating a dispute through trial can be time-consuming and expensive.  Even a relatively straightforward case can take over a year and cost tens of thousands of dollars.  In response to the increasing cost of litigation, many businesses began requiring that all disputes be submitted to binding arbitration.

Small Payroll Recordkeeping Mistakes May Have Disastrous Consequences

Are you sure your employee payment policies and record keeping are compliant with California's complex labor laws?  Are you willing to bet your business on it?  Because with the significant potential fines, penalties, and costs the Division of Labor Standards Enforcement ("DLSE") can impose on your business for even the smallest, most innocent payroll mistakes or misunderstandings, that is exactly what you could be doing.

Recent Ruling Warns “Additional Insureds” to Negotiate Self-Insured Retention Provisions

In Forecast Homes, Inc. v. Steadfast Ins., a homebuilder ("Forecast") retained several subcontractors to perform portions of work at a residential project. As part of the subcontractor agreements, Forecast required the subcontractors to add Forecast as an additional insured on their commercial general liability policies.

NB Attorneys Help Tenants Terminate Highly Unfavorable Multi-Year Commercial Lease

Faced with a personally guaranteed, multi-year lease entered into at the height of the commercial real estate boom in downtown San Diego, NB Attorneys sued a prominent international hotel and property management chain for failing to live up to its own lease terms.