News & Insights

October 30, 2017

On October 14, 2017, California Governor Jerry Brown signed Assembly Bill 1701 into law. This law makes direct contractors liable for a subcontractor's non-payment of its employees. This law is only applicable to private, non-public work. Under AB 1701, if a direct contractor hires and pays a subcontractor to perform electrical work, and the subcontractor does not pay its employees, the direct contractor is liable for the unpaid wages and fringe benefits, plus interest, regardless of the fact that the direct contractor already paid the subcontractor. The direct contractor, however, will not be liable for any penalties resulting from the subcontractor's failure to pay....

October 24, 2017

In a commercial landlord-tenant subrogation action by the landlord and commercial business association’s insurer, partner David Webster and senior associate Eugene Zinovyev recently obtained summary judgment for our client, The Wooden Duck, a long-standing furniture manufacturer and seller in Berkeley. The subrogation action followed a building fire that destroyed our client’s leased warehouse space and other property and personal property of three other entities. Plaintiff insurer issued a property damage policy to the Association that owned and maintained the common area building components and the landlord that leased space to our client. The successful Motion for Summary Judgment was brought under California’s case-by-case anti-subrogation law which provides that lessees cannot be sued for subrogation as deemed implied co-insureds under the policy based on specific language in the lease agreement....

October 10, 2017

In Johnson v. Open Door Community Health Centers, decided on September 11, 2017, the California Court of Appeal held that the Medical Injury Compensation Reform Act's ("MICRA") (Code Civ. Proc., § 340.5) one-year statute of limitations for professional negligence applies only when the injury's legal cause relates to the "rendering of professional services," and not to ordinary negligence claims. This decision limits the reach of MICRA's one-year statute of limitations to injuries caused by a breach of a duty owed exclusively to the patient during the rendering of professional services, rather than the public at large....

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