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An Offer You Can’t Refuse: Civil Extortion or Demand Letter
/in All Blog Posts, Corporate Litigation/by Jake AyresWhen sending a demand letter, whether the sender is an attorney or a lay person, it can be tempting to come in guns blazing. While it is standard practice to threaten civil litigation, sometimes the sender will contemplate other threats, such as threatening criminal prosecution or calling the IRS (or FTB). However, while it may be only human to try and maximize the leverage present in the demand letter in order to effectuate a result, making threats to report someone in a demand letter can result in liability for civil extortion and place the demand letter outside of the litigation privilege. This article discusses the often fine and blurry line between a strongly worded demand letter and an extortionate threat.
In the Weeds on the SAFE Banking Act
/in All Blog Posts, Cannabis, Corporate Litigation/by Jake AyresIn tax season of 2019, a legal cannabis grower walked a nerve-wracking 20 yards from the parking lot to a California government office to pay his state taxes—with a pile of $350,000 in cash. The illegality of cannabis at the federal level has largely shut cannabis businesses—legal at the state level—out of traditional banking. As a result, cannabis businesses operate on an all-cash basis, leading to cash payments to employees, vendors, professional service providers, utilities, and government entities. While this has been a boon to the armored transport and logistics industries, cannabis businesses striving to remain within the contours of the law find themselves bearing the considerable burdens of operating on an all-cash basis, racking up considerable overhead to protect large sums of cash from would-be thieves. Given the onus placed on cannabis businesses—and, arguably, neighbors wary of 24/7 armed guards—cannabis business surely cannot remain excluded from banking forever, can they? Enter the Secure And Fair Enforcement (SAFE) Banking Act of 2019
Insolvency and Corporate Responsibilities To Creditors
/in All Blog Posts, Corporate Litigation/by Chris EvansThe moment a corporation becomes insolvent, a lot can change, and fast. If the officers and directors of the company are unaware of how insolvency can transform the landscape of corporate responsibilities and duties, they run the risk of exposing themselves to liability for the corporation’s debts, even if there was no personal guaranty. For purposes of this blog article, we look at how insolvency changes (or doesn’t change) the scope of a director’s fiduciary duties to creditors.
Granny Flats in No Time Flat
/in All Blog Posts, Real Estate/by Michael CovingtonAs the California housing crisis continues to expand, more and more Californians are looking for ways to leverage their property into additional revenue streams. With popular options like Airbnbs and short term rentals generating controversy and uncertainty as of late, an alternative way for families to supplement their main sources of income is on the rise: the Accessory Dwelling Unit.
Why Speak to an Attorney Before Buying a Home?
/in All Blog Posts, Real Estate/by Ajay GuptaThe professionals that you surround yourself with when purchasing a home all have a vested interest in your “closing the deal.” All the parties, including the broker, the mortgage salesperson, and the title company each get paid through commission. If each party is purchased this way, who is there to push the brakes and first ask if this is a smart decision? Or if the title is clean? How about if the financials make sense, or if there is an issue with the inspection that needs to be examined? Let the crucial role of the unbiased advisor be your attorney.
The Stadium Proposals: Sometimes, Nothing is Better than Something
/in All Blog Posts, Real Estate/by Ajay GuptaAs part of this year’s midterm elections, San Diegans will be confronted with two competing ballot measures focusing on what to do with the land surrounding the iconic SDCCU Stadium (formerly, Jack Murphy Stadium and Qualcomm Stadium). The first ballot measure is Measure E, otherwise known as “SoccerCity.” Measure E is sponsored by FS Investors, a privately held investment firm with offices located in La Jolla and San Mateo. The second ballot measure is Measure G, otherwise known as “SDSU West.” SDSU West is headed by a steering committee calling themselves “Friends of SDSU.” Friends of SDSU is made up principally of local San Diegans, as well as SDSU Alumni.
Airbnb and Short-Term Rentals in San Diego: The Ban that Never Was
/in All Blog Posts, Real Estate/by Chris EvansYou have likely seen the signs around town — “Neighborhoods are for Neighbors, Not Vacation Rentals.” This phrase has become the mantra of “Save San Diego Neighborhoods,” the lead organization pushing back against San Diego’s rapidly expanding short term rental market. Save San Diego is an organization fighting to stop the “illegal conversion of San Diego homes to short-term vacation rentals.” In doing so, Save San Diego has been pushing the San Diego City Council to impose significant regulations with respect to short-term rentals such as Airbnb.
Prop 10: Does Rent Control Make Sense for California?
/in All Blog Posts, Real Estate/by Ajay GuptaIn June, the California Secretary of State confirmed Proposition 10 as a ballot initiative that, if passed, will allow cities in California to implement rent control. With the housing shortage in California, San Diego in particular, renters have seen dramatic increases in rent that quite simply have not kept up with the cost of living. As a result, San Diego is seeing gentrification in areas not normally associated with the displacement of middle- class renters, like La Mesa and the surrounding suburbs of downtown. This displacement is what is most likely bringing Proposition 10 to the ballots this November.
Reverse Veil Piercing: A Welcome Addition to the Creditor’s Collection Arsenal
/in All Blog Posts, Corporate Litigation/by Chris EvansIn 2017, the California Court of Appeals ruled that creditors can directly pursue the assets of an LLC owned by a judgment debtor to satisfy the judgment. This process, known as “Reverse Veil Piercing,” marks a significant change in California law as it relates to collections and the way that the assets of an LLC are viewed in the eyes of the Courts. The ruling may also be indicative of how the Courts plan to treat closely held entities in the future.