California Business Litigation Attorney Blog

May 29, 2020

Court Closures Update:

More than two months after the closing of most of the courts in Southern California, we are starting to see courts beginning to reopen in the wake of the COVID-19 pandemic. Though some courts have begun to resume operations, by no means should we take this as a sign that the emergency has subsided. Most courts will require that you wear a face covering and maintain social distancing guidelines as a condition of entering the courthouse. We encourage all of you to continue to follow the directives of the state and local governments in your area.

Here are the updates as of May 29, 2020:

The Orange County Superior Court has re-opened courthouses for limited services as of May 26, 2020. Members of the public should only visit a courthouse if they have been notified by the Court that they have a hearing scheduled on their matter. The public service windows remain closed. For more information on how courts are handling various types of cases, you can read the court’s latest releases here.

May 5, 2020

Court Closure Update

by Adina T. Stern, Esq.

Due to the outbreak of the Coronavirus, the Chief Justice of the Supreme Court of California is issuing emergency orders upon request from each county’s presiding judge. These orders allow the courts to manage a reduction in judicial services. Each court is authorized to limit its operations as necessary to help curb the spread of the COVID-19 disease. We will be monitoring court rescheduling and closures on this page.

Here are the updates as of May 5, 2020:

The Orange County Superior Court announced that the court will be closed at all locations from March 23, 2020 through May 22, 2020. The effect will be that for most types of cases, the closure will be considered a court holiday for purposes of scheduling. For more information on how the closures will affect the calendar of various types of cases, you can read the court’s latest releases here.

March 18, 2020

Coronavirus Related Court Closures

by Adina T. Stern, Esq.

Due to the outbreak of the Coronavirus, the Chief Justice of the Supreme Court of California is issuing emergency orders upon request from each county’s presiding judge. These orders allow the courts to manage a reduction in judicial services. Each court is authorized to limit its operations as necessary to help curb the spread of the COVID-19 disease. We will be monitoring court rescheduling and closures on this page.

Here are the updates as of March 25, 2020:

The Orange County Superior Court announced that the court will be closed at all locations from March 23, 2020 until further notice. The effect will be that for most types of cases, the closure will be considered a court holiday for purposes of scheduling. The following types of civil hearings will still be conducted:

April 26, 2019

What Must Be Included in a California Home Improvement Contract?

by Adina T. Stern, Esq.

It is surprising how many calls we get because home improvement contracts fail to meet even the bare requirements of California Law. Contractors working in residential improvements need to be extremely careful that they do not simply use their bid as the agreement. The contractor must provide the homeowner with a written Home Improvement Contract (HIC) that fully complies with California law. Otherwise, the Contractor may not only have a problem collecting payment from the homeowner, but may also face discipline from the Contractors State License Board.

What Must I Include in My Contract?

There are a number of codes and statutes that regulate the content of a construction agreement. California contractors must be aware of the laws that requires them to include certain language in their agreements to perform home improvements for customers.

February 10, 2016

Is it Legal? Listing a Property on Airbnb or VRBO in California

by Adina T. Stern, Esq.

All too often new ideas get ahead of the law. Airbnb and VRBO are examples of just such a situation. Real estate lawyers are being inundated with calls from landlords who are receiving citations from their cities, fines from their homeowners’ association, and/or are receiving complaints from neighbors because their tenants have jumped on the Airbnb bandwagon to make some extra money. While municipal laws such as those enacted in San Francisco are emerging regarding short term rentals, the courts are starting to make rulings strictly prohibiting a tenant from making their apartment available as a short term rental. Many of you may be reading this blog because you are wondering; “Is it legal for me to list my place on Airbnb?”

In Chen v. Kraft, a California appellate court found that using an apartment as a bed and breakfast or as a transient occupancy residential structure was a violation of zoning laws. Courts and cities throughout California have addressed this issue differently. New laws are being enacted each month in different cities and counties throughout California. With all of this confusion, you should consult a real estate attorney who specializes in landlord tenant issues to find out what you can and cannot do with respect to short-term rentals.

Problems Caused By Short Stay Rentals

While it may seem like a fine idea to rent a room or your entire home out for some extra cash, problems abound when people try to circumvent many of the regulations that hotels and inns must follow. Companies such as VRBO and Airbnb do not provide legal support and often short term rentals violate local ordinances. When people list their apartments or homes, they do not pay the tourism taxes that hotels do. Most landlords do not appreciate having their residential units turned into hotels yet they have been able to use the short-term rental concept as a means of circumventing local rent control laws by taking their unit off the market for long-term housing and then offering it to visitors and tourists. Continue reading

December 14, 2015

Hiring a Contractor: What you Need to Know About California Residential Remodeling and Construction Contracts

by Adina T. Stern, Esq.

No matter where in Southern California you live, and no matter how long ago your home was built, remodeling and making improvements to your home is a generally a good idea. Whether you are knocking out a non-structural wall to create more space, or creating a backyard that is the envy of your neighbors, improving your home can be both exciting and stressful. The last thing that may cross your mind when you decide to improve your property is a mechanics’ lien or lawsuit, but the first call you make before you sign a home improvement contract should be to your real estate attorney who can help you determine whether the contract you are about to sign is legal and gives you the rights you need to protect yourself.

California regulates the construction industry through the Contractors State License Board which issues licenses to and disciplines contractors. In an effort to protect Californians, the law requires that a contract for home improvement must properly advise consumers of their rights under California law.

If your contractor does not have a valid license for the type of work being performed or does not have a written contract for you to sign, that is a red flag that indicates that you should not be doing business with that person or company. Your choice of contractor affects every other decision down the line, and a wrong decision to hire an unqualified or unlicensed contractor can prove very costly in the long run. Continue reading

June 22, 2015

How to Put a Lis Pendens On a California Property

by Adina T. Stern, Esq.

I often get calls from clients who are looking for a real estate lawyer to put a lis pendens on someone’s real property. I then explain to them that they must file a lawsuit to do this and they are surprised. A lis pendens literally means a “Notice of Pending Action.” In other words, it is a notice to the world that there is a lawsuit regarding title to that real estate. A lis pendens is not a lien and it cannot stop someone from selling or getting a loan secured by real property, however, it usually does effectively deter others from buying, selling or borrowing money because it means the ownership rights to that property are in question.

A lis pendens is permitted in some types of lawsuits and actually required in other types of actions. It is required in lawsuits for Partition, Eminent Domain, Quiet Title, Claims to Escheted Property, Forefeiture Proceedings, and Actions to Declare a Building Uninhabitable. It is permitted in other types of cases where someone has a real property claim such as mechanic’s lien foreclosure lawsuits, divorces, suits to enforce easement rights, and suits to specifically enforce a real estate contract. It is critical, however, to consult a real estate litigation lawyer who is familiar with these laws because you may subject yourself to liability later for improperly filing a lis pendens.
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December 12, 2013

What to Do If You Are Served With a Subpoena

by Adina T. Stern, Esq.

If you are served with legal papers it is important to determine what type of papers you received. Are you being sued or are you being called to court or a deposition as a witness. It is worth a call to a litigation attorney to help you determine what steps to take so that you do not find yourself embroiled in someone else’s lawsuit.

What Is a Subpoena?

First you must determine if you have been served with a summons or a subpoena. If you have been served with a summons it means you are being sued. Click on this link to see an example of a summons. A subpoena is a document that requires the attendance of a witness or the production of documents at a deposition, trial or hearing. Subpoenas can be served on parties and non-parties to a lawsuit or criminal case. An example of a subpoena can be seen by clicking on this link.

Types of Subpoenas

There are two main categories of subpoenas: deposition subpoenas and trial subpoenas. A deposition subpoena requires attendance and/or the production of documents or other things at a deposition. A deposition subpoena is necessary to compel a non-party witness to appear and give testimony or produce documents at a deposition. Subpoenas are not required to compel someone who is a party to an action to appear.
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August 12, 2013

How to Be Prepared for a Business Lawsuit

by Adina T. Stern, Esq.

The time to prepare for a business lawsuit is before you have been sued or need to sue someone. Keep in mind that most business litigators charge by the hour so to the extent you can present your documents to your lawyer in a thorough organized manner, the more cost effectively your business attorney can represent you. Careful record keeping and document organization are the best ways to help your business litigation attorney. Here are some tips on how you can do this:

Keep a Detailed Calendar. People do not realize how important it is to keep an accurate calendar of what they do and where they have been until they are embroiled in a lawsuit. A good calendar can prove where you have been and where you have not been. For example, in construction or breach of contract cases, it may be critical to prove how much work was performed and when it was performed. A good calendar entry which documents who you were with, what you did, when you did it, and where you were is invaluable to prove details you may not realize will be important at some time in the future. Similarly, in fraud actions a critical issue is sometimes what the plaintiff knew and when they discovered it. Cases will often turn on when certain information is conveyed by one party to another. A thorough record of meetings can also prove you were not around when information was provided because you can show you were somewhere else at the time. A good calendar can be in written form or on your computer; just make sure it is in a form that will not be lost or destroyed if it is needed. For purposes of determining statutes of limitations it is also critical to have a detailed and accurate calendaring system.
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July 22, 2013

Buying a Business: Common Dangers and Pitfalls

by Adina T. Stern, Esq.

Anyone who wants to buy a business needs to be cautious before signing an offer. It is critical to consult with a lawyer who is experienced in California business sales to guide you through the process. Very often the business purchase agreements presented by brokers to potential buyers are designed to protect the broker and not the parties to the agreement. By contrast, the California Association of Business Brokers has an excellent standard form that is a good starting point for negotiations.

Structuring the Transaction. First you need to decide the structure of the agreement. Structuring the transaction is not an issue that should be determined by a business broker. You should consult with your tax advisor and attorney to determine how you are going to hold the company. Will you operate the business as an S-Corporation, a C-Corporation, a limited liability company or some other form? Are you buying an existing company or only the assets of the business? Each transaction is different and must be separately evaluated.
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