When two equal business partners reach an impasse, a 50/50 corporate deadlock can be an existential threat to the enterprise. In a closely held California company, an equal equity split often means equal voting power. When trust breaks down and vision diverges, neither owner can outvote the other to break a tie. The result can...Read More
Starting a Business in Sacramento: Legal Requirements Beyond Forming an LLC Many entrepreneurs believe their business is legally “set up” once the California Secretary of State accepts their LLC filing. While forming an LLC is an important first step, it is only one piece of the process. In practice, many legal issues that later lead...Read More
Arbitration clauses are everywhere. Chances are that you are subject to a few without even knowing it. But what is arbitration, and how is it different from going to court? Arbitration is a form of alternative dispute resolution. Arbitration is often confused with mediation, which is a form of structured settlement negotiations. Instead, arbitration is...Read More
Failing to assert something doesn’t always waive your right to do so later, but there are limitations. In the arbitration context, if you don’t compel arbitration up front, you risk losing your right to it entirety. In the recent case of Spracher v. Paul M. Zagaris, Inc. (1st Appellate Dist. Case No. A152941, September 17,...Read More
Lawyers often look at court decisions wondering if the judges are thinking through the practical applications of their rulings. While we know judges consider real-world application, the outcome of some cases makes it unclear how much stock is put into it. However, in a recent decision, the California Court of Appeal was explicit that it was...Read More
In Orozco v. WPV San Jose, LLC (6th Dist. Cal. App. H044014, June 19, 2019), plaintiff Paul Orozco opened Pauly’s Famous Franks N Fries in a San Jose shopping center named “The Plant,” which sold hot dogs and french fries. Before signing a 10-year commercial lease, he asked the leasing manager whether restaurants with competing...Read More
