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Business Litigation California

McGuireWoods LLP

Corporate Defendants Take Note: California Supreme Court Rules State Law Requiring Timely Payment of Arbitration Fees Not...

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On Aug. 11, 2025, in Hohenshelt v. Superior Court, the California Supreme Court held that the Federal Arbitration Act does not preempt California Code of Civil Procedure Section 1281.98. The statute, intended to deter the...more

Proskauer - Trade Secrets

Massive $604.9 Million Verdict in Landmark Trade Secret Case

A California state jury awarded Propel Fuels, Inc. $604.9 million in damages after finding Phillips 66 Company liable for trade secret misappropriation. Propel Fuels, Inc. v. Phillips 66 Co., Case No. 22CV007197 (Cal. Oct....more

Cooley LLP

California Supreme Court Saves Delaware Forum Selection Clauses in Corporate Certificates of Incorporation

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On July 21, 2025, the California Supreme Court issued a significant decision clarifying that a forum selection clause in a company’s certificate of incorporation is not unenforceable simply because the selected forum (here,...more

Epstein Becker & Green

A Counterintuitive Approach to Winning Without Litigation: One-on-One with Haley Morrison

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Meet Haley Morrison, a Portland-based litigator at Epstein Becker Green with a thriving California practice. In this one-on-one interview, Haley sits down with fellow Epstein Becker Green attorney George Whipple and shares...more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Holds That Derivative Litigation Settlement Procedural Rules Apply Even In Intra-Shareholder Suits in...

In Norman v. Strateman, No. A170356, 2025 WL 1802786 (Cal. App., 1st Dist., June 20, 2025), the California Court of Appeal held that a settlement of derivative claims reached among all shareholders of a close corporation was...more

Snell & Wilmer

Nevada Rejects Calder’s Jurisdictional Effects Test in Negligence Cases

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On June 18, 2025, the Nevada Supreme Court held in Whitley v. Greyhound Lines, Inc., 141 Nev. Adv. Op. 33 (2025), that Calder v. Jones’ “effects test” applies only in intentional tort cases. The opinion provides an analysis...more

Patton Sullivan Brodehl LLP

What if an LLC’s Books and Records Contain Trade Secrets?

One of the most important rights owned by LLC members is the right to inspect the LLC’s books and records. For an overview of LLC books and records requests, see the prior LLC Jungle post: Why LLC Managers Should Take Member...more

Loeb & Loeb LLP

Lively v. Wayfarer Studios LLC

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In case arising from ongoing dispute between movie stars Justin Baldoni and Blake Lively, district court dismisses all of Baldoni’s claims for failure to state claim, but grants Baldoni leave to amend as to his implied...more

Stradling Yocca Carlson & Rauth

California Business Divorce: Partner Fraud and Personal Liability: Important Lessons from Bartenwerfer v. Buckley

The Story Behind the Case - Kate and David Bartenwerfer started their business with a straightforward plan. The couple decided to renovate and sell a house they jointly owned in San Francisco....more

Stradling Yocca Carlson & Rauth

California Business Divorce: California Court Recognizes LLC Member Lists as Trade Secrets in Recent Ruling

California Court Recognizes LLC Member Lists as Trade Secrets in Recent Ruling - When an LLC member suspects the company is playing favorites with redemption requests, how much access should they have to the membership rolls...more

Allen Matkins

Is An LLC's Membership List A Trade Secret?

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Yesterday's post considered one of several matters raised on appeal in Perry v. Stuart, 2025 WL 1501935.   The case involves a former member's demand for inspection of records of a California limited liability company. ...more

Allen Matkins

Is There A Contemporaneous Membership Requirement For LLC Inspections?

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The Nevada Limited Liability Company Act provides “a manager” of a limited liability company “shall promptly deliver . . . a copy of the information required to be maintained by paragraphs (1), (2), and (4) of subdivision (d)...more

Weintraub Tobin

Navigating Business Interests as a Fiduciary in California

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Administering a trust or probate estate is challenging enough—but what happens when you, as a private professional fiduciary, are tasked with managing a business interest? Whether you’re a professional trustee, conservator,...more

Allen Matkins

Complaint Need Not Allege Fraud, Misrepresentation, Or Deceit To Be "Based Upon" A Corporation’s “Fraud, Misrepresentation or...

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In 2002, the California Legislature created the Victims of Corporate Fraud Compensation Fund as part of the Corporate Disclosure Act. There are a number of conditions that must be met to receive a payout from the fund.  One...more

Venable LLP

To Be or Not to Be...Discoverable: Third-Party Litigation Funders

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Should California courts permit litigants to conduct discovery into litigation funding, namely whether a third party is funding their adversary’s litigation efforts?...more

Foley & Lardner LLP

Actions Speak Louder Than Words: A Franchise Relationship Can Exist in Spite of a Contract’s Express Terms to the Contrary

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In OTG New York, Inc. v. Ottogi America, Inc., OTG was the exclusive regional distributor for food company Ottogi from 2008–23, during which Ottogi shipped inventory to OTG’s New Jersey warehouse. In 2024, Ottogi terminated...more

Clark Hill PLC

California Supreme Court holds that limitations of liability provisions are unenforceable for willful conduct under Civil Code...

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In response to a request from the Ninth Circuit Court of Appeals to interpret the scope of California Civil Code section 1668 and its rule that parties may not contract away liability for “willful injury to the person or...more

Epstein Becker & Green

As State Legislatures Debate Strengthening the Corporate Practice of Medicine Limitations, a Drug Manufacturer’s Lawsuits Shine a...

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Drug manufacturer Eli Lilly has filed suit against four companies involved in making, prescribing, and/or selling compounded versions of its weight loss and diabetes drugs ZEPBOUND® and MOUNJARO®....more

Wiley Rein LLP

Ninth Circuit Privacy Ruling Could Be Used to Expand Potential Forums for E-Commerce Lawsuits

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On Monday, April 21, 2025, the U.S. Court of Appeals for the Ninth Circuit, sitting en banc, issued an opinion in Briskin v. Shopify, Inc., __ F.4th __ (9th Cir. Apr. 21, 2025), that plaintiffs will cite to attempt to expand...more

Allen Matkins

If You Agree That Stock Issuance Was Not "Compensation, Salary, Or Income", You May Want To Think Carefully Before Issuing A Form...

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Ten years ago, Hovik Nazaryan sued Femtometrix, Inc. claiming that the company had issued shares to him than it had promised.  The parties settled the lawsuit.  The settlement agreement provided that the stock issued to Mr....more

Jenner & Block

$17 Million Attorney Fee Award Aims to Deter Malicious Trade Secret Misappropriation

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Singapore-based XP Power has been ordered to pay $17 million in attorneys’ fees to opponent Comet Technologies, USA, following Comet’s victory at trial. The Northern District of California issued the order in January 2025,...more

Patton Sullivan Brodehl LLP

LLCs Can Assert Offensive Claims Against Members

In “business divorce” litigation involving LLCs, it is common to see a disgruntled LLC member asserting claims against the LLC’s manager. Depending on the type of harm alleged, those claims might be asserted directly (by the...more

Wiley Rein LLP

Ninth Circuit Affirms Ruling That Section 533 Bars Coverage for Defense Costs and Indemnity When Claims Broadly Allege Willful...

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The United States Court of Appeals for the Ninth Circuit, applying California law, has affirmed a district court’s determination that California Insurance Code § 533 barred indemnity and defense costs coverage for a lawsuit...more

Snell & Wilmer

Two More Tribes Enter Suit Over California Card Rooms’ Banked Games

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“Defendants [California card rooms] operate, participate in, and facilitate illegal gambling,” according to a complaint filed on April 1, 2025, by the Rincon Band of Luiseno Indians (the Rincon Band) and the Santa Ynez Band...more

Lewitt Hackman

Toll-Free Legal Strategy: The Benefits of a Tolling Agreement

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Filing a lawsuit may not always be the answer when a business or individual has been harmed by another’s wrongful conduct. It is important to evaluate all options and consider strategies that will avoid litigation altogether...more

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