Boundaries are the lines defining the location of a parcel of real property. Boundary disputes frequently arise between homeowners, business owners, private individuals, and the government. These disputes sometimes arise because of misunderstandings, but more often they are just disagreements about ownership, land use, and property lines. Other property disputes involve disagreements about the boundaries. These disputes can arise from changes in property ownership, conflicting property descriptions, or even changes in the physical property. Just as...

A receivership is used to help enforce court judgments. A court can appoint an unbiased third party to be a receiver, and this person or entity is then charged with carrying out a court’s orders. Establishing a receivership is only one of many options to enforce a judgment, but they are particularly useful in cases involving management of a corporation, small business, or income-producing real property. The purpose of a receivership is to enforce an order...

If you find yourself or your business in the middle of a lawsuit, the absolute last thing you should do is destroy evidence, such as documents and files, whether or not they are damaging or incriminating.  If you have been sued and you get rid of or destroy evidence, including emails, you may face severe penalties, including criminal ones.  An example of the many rules and laws that prohibit tampering with or destroying evidence is...

Specific performance is a type of remedy available in some contract disputes where a plaintiff requests that a court enforce the contract in question and force the defendant to perform the agreed upon terms instead of or in addition to paying the plaintiff money damages. It is most commonly used when there is a dispute over the purchase and sale of real estate. Specific performance is an important remedy because real estate projects often involve...

When a contract contains a binding arbitration agreement, the parties to the contract are generally agreeing to waive their right to go to court when they want to litigate issues that arise under the contract. When the parties arbitrate a claim it  is submitted to an arbitrator who will have the power to make an enforceable decision in the case. An arbitration agreement is enforceable as long as it is not “unconscionable,” meaning it...

Previously on our blog, we discussed the importance of understanding the relationship between an agent and a principal.  Knowing the law that applies to principal-agent relationships is particularly important for business owners, so that they can prepare for and mitigate against potential legal liabilities that can arise from an agent’s actions. Agency laws also establish what fiduciary duties can arise from an agent-principal relationship.  It is particularly important to be familiar with fiduciary duties...

On September 28, 2014, California Governor Jerry Brown signed into law Assembly Bill 1897, which created a new Labor Code section. The new law affects businesses that obtain or are provided workers to perform labor from a labor contractor. Once AB 1897 becomes effective, private employers can be held liable for labor contractor’s failure to pay all required wages or to secure valid workers’ compensation coverage for contract workers. Under AB 1897, a business can be...

Under the doctrine of respondeat superior a principle (employer) is liable for the torts of its agents (employees).  A principle-agent relationship exists where the employee has agreed to work on behalf of the employer and to be subject to the employer’s control or right to control the physical conduct of the employee. Respondeat superior is Latin for “let the master answer.”  In the employment context, it might be read more accurately as meaning that “the...

What is the difference between a merger and an acquisition?  The terms “merger” and “acquisition” are common business terms, but they are often inappropriately used interchangeably, when in fact the two transactions are rather different. If you are planning to combine or purchase assets from another company it is imperative that  you understand the benefits and drawbacks of each. Merger In a merger, usually two or more businesses wind down as separate entities, and then a...

There are many reasons to invest in a business, such as joining a new startup, or becoming part of an established and successful business poised for more growth.  Sometimes these new or established companies just need a little additional working capital to be successful.  Before committing, however, it is important to approach the opportunity with objectivity, weigh all investment considerations, and understand the risks and goals associated with the potential investment. First, assess whether your...