Business Law Journal

In Magic Carpet Ride LLC, et al. v. Rugger Investment Group, LLC, the California Court of Appeal recently reversed a trial court’s decision to grant summary adjudication on a breach of contract claim where the defendant was eight days late in depositing a required lien release.   Even though the contract stated that “time is of the essence” and the late deposit violated the strict terms of the contract, the Court of Appeal clarified that it could be considered substantial performance, creating a triable issue of material fact which made summary adjudication improper.

Several recent decisions have addressed the applicability of California Code of Civil Procedure § 425.16, known colloquially as the “anti-SLAPP” law, which provides a procedure by which a defendant can secure the early dismissal of lawsuits that are filed primarily to discourage the free exercise of speech and petition rights.  Under the anti-SLAPP law, defendants are permitted to file a special motion to strike claims “arising from any act…in furtherance of that person’s right of petition or free speech.” 

October marks the opening of the new Supreme Court 2019-2020 term and there is one case in particular that trademark practitioners are anxiously awaiting for the Court to weigh in on to resolve a longstanding circuit split and definitively answer the question whether willful infringement is a prerequisite for an award of an infringer’s profits in an action for trademark infringement.

On September 12, 2019, the United States Court of Appeals for the Federal Circuit held for the first time that “claim language can limit the scope of a design patent where the claim language supplies the only instance of an article of manufacture that appears nowhere in the figures.”  The Federal Circuit’s order affirming the dismissal of a complaint for design patent infringement based on a narrowed construction of the patent-in-suit makes clear that words matter in a design patent.

In May of this year, Chief Judge Colleen McMahon in the United States District Court for Southern District of New York issued a highly anticipated opinion and order in U.S. v. Connolly, finding that the government improperly “outsourced” its criminal investigation to Deutsche Bank and its outside counsel. The decision could significantly impact how companies and outside counsel cooperate with government and enforcement investigations in the future.  While Judge McMahon’s opinion was primarily an admonition to the government, companies facing investigations need to be aware of potential conflicts that could arise when interviewing employees regarding potential wrongdoing. 

The California Supreme Court recently issued the latest in a series of decisions concerning the applicability of Code of Civil Procedure § 425.16 (the “anti-SLAPP law”), which was designed to enable early dismissal of lawsuits that are filed primarily to discourage the free exercise of speech and petition rights. 

On July 12, 2019, the California Unemployment Insurance Appeals Board (“CUIAB”) recently added the latest stick to a growing pile of authority that linguists working for interpretation or translation companies are independent contractors.  This holding clarified that under the Borello standard (which still controls in the context of the Unemployment Insurance Code) interpreters and translators can be, in certain circumstances, properly considered independent contractors.

Invitation to partnership is often the culmination of years of hard work and dedication.  Therefore, partners are highly selective of those who are invited to join the ranks of partnership.  Careful consideration and forethought should be given when the partnership is contemplating the amendment of its partnership agreement.  The recent decision by the Court of Appeal in Han v. Hallberg demonstrates how perceived minor changes to the partnership agreement can have an everlasting impact upon the membership of the partnership.