California

Expert Analysis

• SEC's Insider Info Case Shows Perils Of Portfolio Co. Trading

  

  The U.S. Securities and Exchange Commission's recently settled enforcement action against Ares Management demonstrates that private fund managers with potential insider info should systematically investigate trading approvals in situations that present a heightened risk of access to material nonpublic information, say attorneys at Debevoise.

• COVID-19 Orders Unlikely To Constitute Temporary Takings

  

  Although public agencies have issued a broad range of orders intended to slow the spread of COVID-19, they are likely safe from temporary takings claims due to the high hurdles for such claims and the expanded police powers granted to governments during public health emergencies, say Gene Tanaka and Emily Chaidez at Best Best.

• Calif. Ruling Will Help Cos. Fight Fraud-By-Implication Suits

  

  The California Court of Appeal's recent ruling in Shaeffer v. Califia Farms — holding that a company's claims about its product did not imply false claims about other companies' products — provides an important framework that food manufacturers can use to dispose of similar cases at the pleading stage, say attorneys at Covington.

• Opinion

  Time To Consider Percentage Rental Agreements For Lawyers

  

  It has long been the law that attorneys cannot use percentage rental agreements because doing so would constitute an impermissible sharing of fees with nonlawyers, but such arrangements can help lawyers match expenses with revenues in lean times like now, say Peter Jarvis and Trisha Thompson at Holland & Knight.

• Handling Employee Vacation Requests During COVID-19

  

  While there is little precedent for dealing with employee vacation requests during a pandemic, companies can protect workers by carefully asking about travel plans, and following public health agency and local guidelines when advising employees to self-isolate, say attorneys at Baker McKenzie.

• Calif. Cannabis Delivery Case May Bring Black-Market Growth

  

  A win for municipalities suing the California Bureau of Cannabis Control in an upcoming trial this month would likely lead to an increase in black-market services by disallowing legal statewide marijuana delivery, say Michael Rosenblum and Lauren Chee at Thompson Coburn.

• Indirect Purchaser Antitrust Standing Heads In New Direction

  

  The applicability of the U.S. Supreme Court's 1983 Associated General Contractors indirect purchaser price-fixing decision to antitrust standing under state law continues to evolve, with some decisions that may portend diminished application, say Chris Micheletti and James Dugan at Zelle.

• Altera Could Bolster State Transfer Pricing Scrutiny

  

  The reasoning of the Ninth Circuit's Altera v. Commissioner decision — which the U.S. Supreme Court recently declined to review — could provide state tax authorities with an argument for additional discretion when challenging transfer pricing arrangements between affiliated entities, say attorneys at Eversheds Sutherland.

• High Court Clarifies CFPB's Future, Complicates CFPB's Past

  

  While the U.S. Supreme Court's decision in Seila Law this week leaves the Consumer Financial Protection Bureau standing, the CFPB's director now lacks protection from presidential termination, which brings uncertainty regarding the status of past actions taken by bureau directors who were "unconstitutionally insulated" from termination, says Eric Mogilnicki at Covington.

• Auto Cos. Should Ramp Up Their Supply Chain Vetting

  

  Automotive companies procuring from new sources because of the pandemic or adapting to new requirements of the U.S.-Mexico-Canada Agreement can minimize their compliance risks by implementing full-spectrum, know-your-source due diligence and documenting every aspect of their vetting process, say Gregory Husisian and Jenlain Scott at Foley & Lardner.

• 'Settle And Sue' Malpractice Cases Have New Clarity In Calif.

  

  A California state appellate court's recent decision in Masellis v. Law Office of Leslie F. Jensen provides a road map for proving causation and damages in settle-and-sue legal malpractice cases — an important issue of long-standing confusion, says Steven Berenson at Klinedinst.

• How Discovery Is Evolving In ERISA Benefits Litigation

  

  While courts have been reluctant to grant discovery in Employee Retirement Income Security Act benefits cases in the past, textual-minded judges questioning the legitimacy of judicially created doctrines are increasingly allowing more discovery, says Mark DeBofsky at DeBofsky Sherman.

• High Unemployment May Threaten Restrictive Covenants

  

  Restrictive covenants in employment agreements will face greater scrutiny from courts if high unemployment persists, but the analysis will depend on whether the company aims to protect trade secrets, client relationships or its interest in unique employees, says Reid Skibell at Harris St. Laurent.

• How Calif. Privacy Rights Act Could Shape Privacy Landscape

  

  If California voters support the California Privacy Rights Act in November, it will become a permanent baseline for California privacy law, increase the already demanding requirements of the California Consumer Privacy Act, and potentially redefine informational privacy for the entire U.S., say Lauren Kitces and Lydia de la Torre at Squire Patton.

• What You Say In Online Mediation May Be Discoverable

  

  Mediation conducted online with participants in different states makes it harder to determine where communications were made, increasing the risk that courts will apply laws of a state that does not protect mediation confidentiality, say mediators Jeff Kichaven and Teresa Frisbie and law student Tyler Codina.