A preference action refers to a lawsuit brought under the U.S. Bankruptcy Code in which a creditor or bankruptcy trustee seeks to get pre-bankruptcy payments reversed. Under U.S. law, bankruptcy courts can automatically review all payments made by the filing business, to any party, within the last 90 days before the bankruptcy petition was filed. Courts have the authority to force individuals and companies that received inappropriate payments to compensate damaged creditors. In this post, our top-rated San Jose business bankruptcy attorneys discuss one of the common defenses that can be used to fight against preference lawsuits: contemporaneous exchange for new value.
No California business wants to face the tremendous hassle that comes with a lawsuit. If your company is being sued for any reason, whether it is a part of a contract dispute, a partnership dispute or an employment law issue, dealing with a lawsuit can be incredibly frustrating. The first thing you need to do is to consult with an experienced San Jose business law attorney. Your attorney will be able to determine what needs to be done to protect your company's legal rights and business interests. From there, you need to be sure to handle your case with due care. To help, our team has put together a list of four of our best tips for companies facing litigation.
According to the reporting from the Los Angeles Times, Payless ShoeSource has filed for Chapter 11 bankruptcy protection. The company, which is based in Topeka, Kansas, operates stores all around the country, including throughout the state of California. At least 400 stores are set to close nationally, with 30 closing in California alone.
For franchisees, their franchise agreement is the fundamental foundation of their investment. If you are considering putting your hard-earned money into a franchise in the Bay Area, it is imperative that you have a well-crafted franchise agreement. Your agreement must be clear and it must adequately protect your legal rights and business interests. Here, we list five critically important issues that must be addressed in your California franchise agreement.
Recently, the United States District Court for the Northern District of California issued an important opinion in the case of Bell Prods. v. Hosp. Bldg. & Equip. Co. The court ruled that the Federal Arbitration Act (FAA) preempts a California state statute that requires that arbitration proceedings must remain in state. The decision could potentially have significant ramifications for California businesses and contractors who deal with out of state firms.
On January 1st, 2017, California's Assembly Bill 626 (AB 626) officially became law. This legislation substantially alters the claims process for public works-related disputes. Like any other project, a public works project has the potential to run into problems. As such, it is imperative that companies are able to protect their rights and interests. All contractors and construction firms that are involved in public works projects must understand this new law.
Business bankruptcy cases are challenging for all parties involved, including the creditors. This especially true for businesses that became a creditor without ever actually lending money. For instance, when a company enters bankruptcy, it often has active accounts payable or accounts receivable with other companies. This leads to some businesses becoming creditors in bankruptcy without ever engaging in the traditional lending business. It can also create a situation where a company both owes money and is owed money, by a company in bankruptcy. This creates a very confusing legal situation. Fortunately, a concept known as 'set-off rights' found under Section 553 of the Bankruptcy Code can help to clarify the situation.
According to a report from the Los Angeles Times, Southern California Edison, the single largest subsidiary company of the Edison Corporation, has been awarded $125 million by a three-person arbitration panel. Originally, the company and its business partners were seeking more than $7 billion in damages from Mitsubishi Heavy Industries. While the arbitration panel agreed that additional financial damage occurred, a liability cap in the underlying contract limited the recovery.
Beyond being home to some of the biggest tech businesses in the world, the Bay Area remains a top location for startups. As was reported in a study from the Ewing Marion Kauffman Foundation, a nonprofit organization focused on promoting entrepreneurship, San Francisco and San Jose-Sunnyvale-Santa Clara are both ranked among the top-ten regions in the United States to start a tech company. Of course, forming a new company comes with many challenges. Here, our Silicon Valley business law attorneys focus one of the most important aspects of starting a new tech company: Intellectual property rights.
A mechanic's lien, also known as a construction lien, is an incredibly powerful collection tool that is available to contractors and subcontractors in California. In fact, any party that provides materials or labor in an effort to help improve real property may seek a mechanic's lien against the property in the event that they are not fairly paid for their contribution. Essentially, a mechanic's lien will give a person or company a creditor's interest in that property. Of course, if the owner of the property declares bankruptcy, things can quickly become extremely complicated. If your company is dealing with a mechanic's lien and a bankruptcy filing by the party that owns the property, please contact an experienced San Jose creditors' rights lawyer for immediate legal assistance.