tag:blogger.com,1999:blog-41254125227046877142024-03-08T00:12:58.509-08:00Ruben Ruiz Law - Civil and Business Litigation Attorney San JoseAdminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-4125412522704687714.post-30614026541997739692015-02-25T21:59:00.000-08:002015-06-12T02:59:07.237-07:00Understanding Summary Judgment<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>X-NONE</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:DontVertAlignCellWithSp/>
<w:DontBreakConstrainedForcedTables/>
<w:DontVertAlignInTxbx/>
<w:Word11KerningPairs/>
<w:CachedColBalance/>
</w:Compatibility>
<w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--></div>
<div style="text-align: justify;">
<!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="267">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]--><!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"Times New Roman";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
</style>
<![endif]-->
</div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">A motion for summary judgment is one of the most frequently
filed motions before a civil court. Regardless of the field of law that a
lawyer practices in, it is usually important to understand what a motion for
summary judgment means. This article is an attempt to briefly explain what a
motion for summary judgment is, and to make it easier to understand. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">A motion for
summary judgment is filed by a party to a case when they believe that there is
no dispute as to any material facts and therefore no requirement of hearing
evidence and going through the process of trial to determine disputed facts.
Alternatively, it could also be explained as follows: if the facts are such
that even if they are considered in the manner most favorable to the non-moving
party (i.e., not the party who has moved the court for summary judgment) a
reasonable jury would not possibly find in favor of the non-moving party. In
layman’s terms, this means that the facts of the case are so one-sided that it
can be decided in favor of one party without even going to trial. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><u>Burden of proof:</u></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><br /></span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">On a motion for summary judgment,
the initial burden of proof is on the party moving for summary judgment. The
moving party has to demonstrate an absence of a genuine issue (or dispute) of
material facts. Once the moving party has established this, the burden shifts
to the non-moving party. The non-moving party must then produce enough evidence
to rebut the moving party’s claim and establish that there is a genuine issue
of material fact. If the non-moving party does so, then the motion for summary
judgment will be denied. </span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">Motions for summary judgment are
typically heard prior to the taking of oral testimony or evidence at trial. It
is based on admissions made by the parties in their written briefs, evidence
provided in affidavits or other authenticated documents and arguments that the
factual issues in the briefs are either not genuine or not material to the
case. </span></span></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><u>Why is it important?</u></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><br /></span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">The decision in a motion for
summary judgment is critical because it amounts to an adjudication of the
controversy ‘on its merits’. In simple terms, this means that once summary
judgment has been awarded, you cannot litigate the same issue again, unless you
are appealing against the grant of summary judgment. </span></span></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">Judges frequently grant partial summary judgment – this
happens when they believe there is no genuine issue as to one aspect of the
case, but the other aspects ought to be decided at trial. In cases involving
multiple parties, courts may also grant summary judgment against one party
without granting summary judgment against another. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><u>Choosing to move for summary judgment:</u></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><br /></span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">The decision to move for summary
judgment must be made carefully. It requires a thorough analysis of the moving
party’s claim or defense, and the extent to which evidence can be presented to
establish or controvert the existence of an apparent issue of fact and its
materiality to the case in question. The lawyers handling the case need to be
extremely conversant with the issues involved and the proof that would be
required to establish them at court. Lawyers typically make complete use of
pretrial discovery devices available before considering a motion for summary
judgment. A failed motion for summary judgment could have an adverse effect on
the ultimate success of the moving party, because it would betray a lack of
knowledge/understanding by counsel.
</span></span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-188271419066226672015-02-13T21:52:00.000-08:002015-06-12T02:59:17.395-07:00Understanding Motions To Demur<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>X-NONE</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:DontVertAlignCellWithSp/>
<w:DontBreakConstrainedForcedTables/>
<w:DontVertAlignInTxbx/>
<w:Word11KerningPairs/>
<w:CachedColBalance/>
</w:Compatibility>
<w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--></div>
<div style="text-align: justify;">
<!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="267">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]--><!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"Times New Roman";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
</style>
<![endif]-->
</div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">A demurrer is ‘a pleading used to test the legal sufficiency
of other pleadings’. A ‘pleading’ is the term used to refer to documents that
are presented before court. Documents such as complaints, answers to complaints
and cross-complaints are all considered pleadings. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">The concept of a
demurrer has its origins in common law (the term ‘demur’ meaning ‘to object’
and the term ‘demurrer’ referring to the pleading in which the objection is
made). Demurrers have been abolished in many places including the United States
federal court system and many state court systems, because of the idea that it
unnecessarily extends the litigation process. However, demurrers are still
permitted (and commonly used) under state law in California, so it is a concept
worth understanding for residents and businesses in California. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">A demurrer
essentially raises issues of law regarding the form or content of the other
party’s pleading. A demurrer does not challenge the truth of the other party’s
pleadings and does not deal with the facts. It is typically filed in the early
stages of the proceeding, and is used as a mechanism to throw out the case before
it can be heard. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">A motion to demur
is used to challenge defects on the face of the pleading under attack; or from
matters outside the pleading that are judicially noticeable. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"> </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">A demurrer could
be effective in eliminating standard affirmative defenses that are almost
always pleaded. For example, a common defense is to say that a party has come
to court with ‘unclean hands’. This defense is frequently argued as a boiler
plate defense without sufficient facts to justify it. A demurrer would be an effective
way to get rid of such a defense. A demurrer may also be made on the ground of
failure to plead sufficient facts to constitute a defense.</span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><u>Kinds of demurrers:</u></span></span><br />
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">There are two kinds of demurrers. Demurrers for failure to
state a cause of action or defense, or for lack of subject matter are called
‘general demurrers’. This means that the party filing the demurrer argues that
the other party’s pleadings do not sufficiently state a cause of action that
can be presented before the court (or alternatively, do not adequately plead a
defense). This covers a number of defects in form or substance, including
statute of limitations, inclusion of improper party, laches and delay in
litigating the matter, etc. All other demurrers are called ‘special demurrers’. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">However, the reasons for which a
demurrer may be filed are limited. Demurrers can be raised only on specific
grounds that are allowed by the California Code of Civil Procedure. A demurrer essentially raises issue
with the content and form of a pleading. Therefore, if the party against whom
the demurrer is filed, files an amended pleading before the demurrer hearing
date, then the hearing date falls. The opposing party then has to reply to the
amended pleading and/or file a demurrer to it. </span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><u>Advantages and disadvantages</u></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">The most important
advantage that a demurrer presents is that it forces the non-moving party to
clarify particular elements of the cause of action involved. This could place
the party moving for the demurrer in a position to contemplate whether the
proof is sufficient for a summary judgment motion, and alternatively, could
force parties to re-evaluate the merits of the case and consider settlement. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">Many judges today are unsympathetic
to demurrers, preferring that the case move forward on the merits. In
situations where they do permit it, the judge usually permits the non-moving
party to amend the pleading to correct the defect, but this does not help much
except to obtain a little time (at considerable cost).</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">In California, a motion to demur is
the equivalent of a motion to dismiss that may be filed in federal court.
However, considering the advantages and disadvantages, it would be a good use
of time to carefully evaluate the situation before deciding whether/not to
file.
</span></span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-30310525022977852192015-01-27T23:30:00.000-08:002015-06-24T23:19:37.731-07:00UNDERSTANDING CONTRACT DRAFTING – PART II <div dir="ltr" style="text-align: left;" trbidi="on">
<h4 style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Aspects of a Commercial Contract</span><span style="font-family: Verdana, sans-serif; font-weight: normal;"><br /></span></h4>
<h4 style="text-align: justify;">
<span style="font-family: Verdana, sans-serif; font-weight: normal;">Now that we've reviewed the </span><a href="http://www.rubenruizlaw.com/index.php/blog/2014/understanding_contract_drafting_1.html" style="font-family: Verdana, sans-serif; font-weight: normal;">basic aspects of contract drafting</a><span style="font-family: Verdana, sans-serif; font-weight: normal;"> with a simple example of contract involving the sale of used car, let’s look at the more complex aspects of understanding a contract.</span></h4>
<h6 style="text-align: justify;">
<span style="font-family: Verdana, sans-serif; font-size: small;"><b>1. Establishing the law of the contract:</b> </span></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">A unique feature of contract law is that it sets out a ‘private law’ between the parties. This means that the parties to a contract can choose which law they wish to be governed by, regardless of the local law of the place where they reside. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;"><b>For example:</b> in case of a contract regarding the sale of a used car, the <b>buyer and seller could resort to arbitration as a mechanism of dispute resolution</b> instead of approaching the courts. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">For example, if an American company wishes to sell a factory that it owns in China, to an Australian company, the parties could choose to have the contract governed by the laws of a California where the Australian company has a local office. This ensures that the governing law and forum are neutral towards both parties, and provides both parties with a certain degree of comfort in structuring the transaction.</span></div>
<h6 style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif; font-size: small;">2. Establishing complex transaction structures: </span></b></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Commercial contracts are usually complex documents which lay out the structure and organization of the transaction. Commercial contracts are also often futuristic. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Consider the example of the sale of a business by Sam to Sally. The contract could be signed on Day 1, and then the parties could provide for a 20 day time-period where Sally has the right to inspect the financial and operational documents of the business before they take a decision on finalizing the sale. During this period, the parties will usually negotiate the purchase price, based upon the inspection of the documents and understanding of the business. At the end of this 20 day period, if Sally is not satisfied with the results of the inspection, she would have the right to walk-away. Alternatively, the contract could provide both parties the right to walk-away if they are unable to finalize the purchase price. </span></div>
<h6 style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif; font-size: small;">3. Reducing risk:</span></b></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">One of the most important jobs of a lawyer is to structure a transaction in a way that minimizes the risk of his client. Lawyers are becoming increasingly creative in drafting clauses that reduce risk and/or transfer the risk from their client to the other party. The most common risk that is encountered in all contracts is the financial risk. This could be mitigated in a number of ways – establishing an escrow account for the funds during the period between signing of the contract and finalizing the sale; ensuring that the buyer provides a guarantee from his bank regarding the availability of funds, providing that a third person would step in to guarantee payment of the purchase price, etc. </span></div>
<h6 style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif; font-size: small;">4. Providing waiver rights: </span></b></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Waiver rights are provided to parties to permit them to go ahead with the transaction, even if some of the contract obligations have not been met. </span></div>
<div style="text-align: justify;">
<br />
<span style="font-family: Verdana, sans-serif;">For example, in the used car contract, the parties could include a covenant to say that: "The Seller shall ensure that the car contains a full tank of gas on the day of the sale." However, the closing conditions to the contract could provide the Buyer with the right to waive this obligation and still purchase the car, if he so wishes. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;"><b>Waiver rights are important</b> because they permit parties to go ahead with transactions, if the party feels that the risk incurred by him because of the other party’s non-fulfillment of a certain obligation is less than the risk that would be incurred if he concluded the transaction. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Contract drafting has traditionally been a lawyer’s domain. However, websites offering customizable forms have become popular, especially for the contracts that we use almost every day. Examples include: lease agreements, agreements for the sale of a used car, etc. A quick read would seem to suggest that the contract contains fairly standard terms, <b>but a single seeminingly unimportant word, phrase, or even punctuation mark could change the meaning of an entire clause</b>. Therefore, each party should have proposed contracts reviewed by a lawyer who understands their company, their goals, and the laws governing the transaction. <b>This ensures that the party receives the benefits they are contracting for and prevents costly future litigation.</b></span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-38661398605318104432015-01-09T23:28:00.000-08:002015-06-24T23:17:28.406-07:00UNDERSTANDING CONTRACT DRAFTING – PART I<div dir="ltr" style="text-align: left;" trbidi="on">
<h4 style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Basic Aspects of a Contract</span></h4>
<h4 style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /><span style="font-weight: normal;">A well-drafted contract sets out the relationship between the parties, and lays down their agreement regarding the rules that will govern their relationship. A contract should accurately memorialize the business deal, in clear and unambiguous terms. Ideally, it should be fluidly drafted, so it is </span></span><span style="font-weight: normal;"><span style="font-family: Verdana, sans-serif;">flexible enough to deal with changes that occur</span><span style="font-family: Verdana, sans-serif;">, while at the same time </span><span style="font-family: Verdana, sans-serif;">tying down the parties to their obligations</span><span style="font-family: Verdana, sans-serif;">. As an example, let’s use a simple contract involving the sale and purchase of a used car to explain key contract concepts.</span></span></h4>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;"><b>A standard contract will always contain the following clauses:</b></span></div>
<h6 style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif; font-size: small;">1. A statement of facts made by each party that induced the other party to enter into the Contract:</span></b></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">These are technically referred to as ‘Representations and Warranties’. Representations and warranties are always made as of a moment in time, and do not provide futuristic guarantees. For example: The Seller represents and warrants to the Buyer that the car was purchased in 2000. </span></div>
<h6 style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif; font-size: small;">2. The rights and obligations of each party to the contract: </span></b></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">These are technically referred to as ‘Covenants’. Covenants are present and futuristic obligations that each party owes to the other. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;"><b>For example:</b> The Seller shall maintain the car in good condition, until the date of sale. The Buyer shall have the right to inspect the car, prior to the date of sale. </span></div>
<h6 style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif; font-size: small;">3. The events/sequence of events that must occur before a party to the contract is required to perform its obligation: </span></b></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>Contracts are always reciprocal arrangements</b> and require one party to comply with a certain obligation, before triggering the obligation of the other party. </span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>For example:</b> The Buyer shall pay the Seller an amount of $10,000 in cash for the purchase of the car. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">As per this example, the Seller is not obligated to sell the car to the Buyer until he has received this amount. A subsequent clause would provide that upon receipt of this amount, the Seller will execute a bill of sale for the car in favor of the Buyer. </span></div>
<h6 style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif; font-size: small;">4. Discretionary rights: </span></b></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Contracts could often provide a party with a discretionary right that he could use under certain circumstances. Discretionary rights can usually be identified by the use of the term ‘may’ in the drafting of the clause.<b> A discretionary right does not obligate the party to make use of it.</b> </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b><br /></b></span>
<span style="font-family: Verdana, sans-serif;"><b>For example:</b> If, upon inspection, the Buyer is not satisfied with the condition of the car, he may terminate the agreement. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">If a situation arises where a member of Seller’s immediate family is in need of the car, then the Seller may terminate the agreement. </span></div>
<h6 style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif; font-size: small;">5. How the contract will end – the rights of parties to terminate the contract: </span></b></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">This includes details of when and how a party can terminate, as well as a list of specific situations under which a party can terminate. These are technically referred to the ‘Termination Clause’. Termination clauses are very important because they give the parties the right to walk away from a transaction under specified and negotiated circumstances. Clearly specifying the conditions under which the parties can walk-away, and the consequences of the parties walking away avoids a messy court battle. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;"><b>For example:</b> The Buyer shall have the right to terminate the contract if the car is not in good condition on the date of the sale. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Or, the Seller shall have the right to terminate the contract in the event that Buyer fails to pay the purchase price on the date of the sale. </span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-14939101163161945602014-11-18T23:33:00.000-08:002015-06-24T23:17:43.678-07:00Limited Liability Companies – Combining The Best Of Two Worlds<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Leading commentators have summarized the LLC as ‘a non-corporate business [form] that provides its members with limited liability and allows them to participate actively in the entity’s management.’</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Limited liability companies or LLCs, have been a popular form of business for some time now. An LLC offers two main benefits – flexible tax planning and limited liability.</span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">Corporate formalities:</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;">LLCs are intended to be treated as a non-corporate form of business. This means that LLCs do not have to comply with typical corporate formalities like instituting a board of directors, provide for voting rights, conduct meetings, etc. LLCs are also free to tailor their capital needs with a greater degree of flexibility. LLCs can be suitable for many businesses, from a garage-based start-up to a sophisticated joint venture business structure.</span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">Limited liability:</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;">LLCs are regulated by LLC statutes as enacted by each state. LLC statutes generally provide the members of the LLC with a corporate-like limited liability shield. The language of this shield differs from state to state. Essentially, the liability of the member of an LLC is restricted to the amount that he has invested in the enterprise. California law is the most explicit in this explanation, and clearly states that the personal liability of the members of the LLC is similar to the personal liability of the shareholders in a corporation. However, this protection is not absolute. It is subject to certain exemptions which can be broadly categorized as follows:</span></div>
<ul class="list" style="text-align: justify;">
<li><span style="font-family: Verdana, sans-serif;">False or defective formation of the entity;</span></li>
<li><span style="font-family: Verdana, sans-serif;">Wrongful conduct by a member;</span></li>
<li><span style="font-family: Verdana, sans-serif;">Abuse of the shield;</span></li>
<li><span style="font-family: Verdana, sans-serif;">Capital-related obligations imposed by the LLC statute.</span></li>
</ul>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Led by Delaware, the LLC statutes of a few states go beyond the traditional shield of limited liability, and permit LLCs to internally compartmentalize their assets and create individual shields. Under this, the assets of one branch of business can be protected from claims arising out of another branch of business. This is another example of the extreme flexibility offered by LLC statutes.</span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">Management:</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;">Governance and management of a LLC can broadly be divided into the following three areas:</span></div>
<ul class="list" style="text-align: justify;">
<li><span style="font-family: Verdana, sans-serif;">Right of members to bind the management;</span></li>
<li><span style="font-family: Verdana, sans-serif;">Power of members and management to bind the LLC to third parties; and</span></li>
<li><span style="font-family: Verdana, sans-serif;">Rights of members and managers to information pertaining to the LLC.</span></li>
</ul>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Management of an LLC can be in one of two forms– management by members or management by managers. Almost all LLC statutes provide for both parallel forms of management, and the LLC has the choice to choose between them. In stark contrast to corporate law, the default rule in most LLC statutes (regarding the form of management) is decentralized management by the members. Under these statutes, in a member-managed LLC, a member has the power to bind the LLC, similar to the general provisions of a partnership. In the event that the LLC breaks up and neither party has an operating agreement to evidence the form of management, the default rule of the LLC statute will apply (regardless of practical or economic considerations). From a practical standpoint, it is important to choose the form of management and to state it in the operating agreement to prevent a future conflict.</span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">Dissolution:</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;">The most common ways in which an LLC is dissolved are (1) upon expiration of a specified term; (2) upon occurrence of a specified event; (3) with consent of the members; and (4) in an LLC that has only one member, the termination of that member’s membership.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">In addition, many statutes provide for administrative dissolution for LLCs (on failure to file required reports), and for dissolution by court order (under limited circumstances). The common causes of dissolution of a partnership such as death, bankruptcy or resignation of an individual partner should ideally be dealt with in the operating agreement of the LLC.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Structuring an enterprise as an LLC has several tax-planning benefits as well, which will be dealt with in a later article.</span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-62697600569979026202014-10-15T23:35:00.000-07:002015-06-24T23:18:01.526-07:00Corporate Governance And Management Of Corporations<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">State corporate laws place the responsibility of managing the corporation upon its board of directors. The primary advantage of the corporate form of business is that it enables shareholders to share in the benefits, while at the same time limiting their personal liability.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">State corporate laws generally provide 2 important protections for the board in managing the daily affairs of the corporation.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">The first is the benefit of ‘business judgment presumption’. In the event of <a href="http://www.rubenruizlaw.com/index.php/practice-areas/business-a-commercial-law/business-litigation/" sl-processed="1" target="_blank">litigation</a> arising out of a business decision, the court will assume that the directors of a corporation acted on an informed basis, in good faith, and in the honest belief that the action taken was in the best interests of the corporation. Essentially, this means that the court will trust and uphold the decision of the board, unless the plaintiff to the suit is able to prove that the directors were grossly negligent in keeping themselves informed of all material facts.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">The second protection provided to the board is known as ‘demand futility’. The principle of demand futility exists to protect the central importance of the Board in the management of the corporation and to prevent meritless lawsuits. Demand futility acts as a safety valve, allowing only the right level of policing.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">For instance when a shareholder intends to file a derivative shareholder suit for and against the corporation, the shareholder needs to make a claim/demand upon the directors to prosecurte the claim, or alternatively show why a demand was not made (‘demand was futile’). When a shareholder makes a claim against a corporation which is accepted by the board, then the litigation regarding the claim is controlled by the board. Alternatively, a shareholder can claim that demand was futile, if he can prove that at the time of filing of the suit, the board could not have acted impartially upon the demand. Thus, if the majority of the directors were interested in the transaction sought to be litigated, then it could be argued that the board could not have acted impartially upon the demand.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">There are some situations where federal regulation provides shareholders with an advisory vote in addition to corporate law and the corporation’s documents. For e.g., the new ‘Say on Pay’ rules require public companies to provide shareholders with an advisory vote regarding the compensation of its most highly-compensated executives. Advisory votes are important because they give shareholders a chance to voice their opinion. Although these votes are beneficial in maintaining a healthy dialogue between the corporation and its shareholders, the corporation can still choose to ignore the shareholders vote if it believes that an alternate proposal is in the best interests of the corporation.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">A certain degree of tension and conflict between the shareholders and the management is healthy, and would encourage good governance of the corporation. However, for the peaceful functioning of the corporation, it is necessary that a delicate balance between these (sometimes conflicting) interests be preserved. The board is and should be the final word on management and governance of the corporation – the purpose of a corporate enterprise is passive investment by shareholders while the management runs the show. However, boards need to keep in mind that shareholders have legitimate interests in the governance of the corporation and should be provided with some kind of mechanism to express their concerns to the board. This could be achieved by encouraging shareholders proposals or by providing shareholders with greater voting rights. A corporation that does not adequately address shareholder concerns could open itself up to a host of problems, including proxy battles, hostile acquisitions, or poor stock performance.</span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-69069038566455242472014-09-18T23:38:00.000-07:002015-06-24T23:18:14.297-07:00Incorporating a Company in Delaware<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Corporate law is regulated by each state, in the United States. This means that while there is no ‘federal corporations law’, each state has its own corporate law code (many modeled upon the Model General Commercial Code).</span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">What is the significance of the state of incorporation?</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;">A company can establish its headquarters, and do business in any state (not restricted to the state of incorporation). The importance of the state of incorporation lies in the fact that it establishes the legal domicile of the corporation. Based on the ‘<i>internal affairs doctrine</i>’, the law of the state of incorporation generally governs how disputes between directors/officers of the Corporation and shareholders are resolved.</span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">Delaware as the first choice</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;">Delaware is neither a populous nor geographically large state. However, it is the state of incorporation for fifty-seven percent of U.S. public companies and for fifty-nine percent of Fortune 500 companies. Delaware began to acquire its present status in the early 20th century, by adopting a corporate law code aimed at attracting and retaining more incorporations. Due to the large number of companies incorporated in Delaware, and the consequent litigation generated by them, Delaware’s corporate law plays a central role in establishing corporate governance norms for publicly traded corporations in the US.</span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">Why incorporate in Delaware?</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">Established system of judge-made law:</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;">The corporate law of Delaware is known as the Delaware General Corporate Law or ‘DGCL’ and contains extensive provisions regarding the formation, conduct and dissolution of a corporation. However, even the DGCL is limited in its provisions and interpretations. Several vital concepts in corporate law are governed by common law, i.e., judge-made law. These include fiduciary duties of directors, officers and controlling shareholders of the corporation both in conducting the daily business of the corporation, as well as in dealing with particular circumstances like mergers or proxy contests. Delaware courts deal with a massive amount of corporate litigation on a daily basis, which has led to the establishment of a sound corporate jurisprudence. Outside of Delaware, corporate law cases generally constitute only a tiny portion of a judge’s typical case-load.</span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">A sound court system:</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;">The Delaware Chancery court is a uniquely established court with limited jurisdiction. It has a docket of primarily corporate cases. These cases are heard by judges who are experts in corporate law, as opposed to juries. Court decisions are published in case-law reporters and are commercially available, providing valuable guidance to practitioners.</span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<b><span style="font-family: Verdana, sans-serif;">Reduced transaction costs:</span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;"><a href="http://www.rubenruizlaw.com/index.php/attorney-profile/" sl-processed="1" target="_blank">Corporate lawyers</a> develop an early familiarity with the extensive corporate case law laid down by the courts of Delaware. This reduces transactional costs and enables corporations incorporated in Delaware to plan with some foresight and knowledge. Delaware does not charge income tax to corporations incorporated within the State, which have their business/headquarters and operations outside the state.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">There is some argument among scholars and practitioners that Delaware is losing its sheen as the corporate law giant. However, for the foreseeable future, it is unlikely that any other state will overtake Delaware as the favored place of incorporation for sizable companies.</span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-48456648721287414462014-08-21T23:39:00.000-07:002015-06-24T23:20:25.888-07:00Arbitration as an Alternative Dispute Resolution Mechanism<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Soaring litigation costs, possible delays and the dangers and disadvantages in dealing with an unfamiliar jurisdiction are some of the reasons that have led to the development of innovative dispute resolution mechanisms in commercial contracts. </span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Arbitration has evolved as one of the most popular along the various alternate <a href="http://www.rubenruizlaw.com/index.php/practice-areas/business-a-commercial-law/business-litigation/" sl-processed="1" target="_blank">dispute resolution mechanisms</a> for several reasons. Arbitration clauses are generally favored by courts – in the sense that courts usually give effect to arbitration clauses, unless there are good reasons for another interpretation. Unlike court proceedings, arbitral proceedings can be concluded behind closed walls. This benefit of confidentiality is important to parties, especially in cases where IP secrets or a great deal of monetary damages are involved, and the parties to the dispute would prefer to keep it out of media glare. But perhaps the most important advantage offered by arbitration is the use of technically-qualified arbitrators. Commercial disputes today require the services of experts in the field, and it is a massive advantage if the dispute resolving authority is itself composed of experts. </span></div>
<div style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif;"><br /></span></b>
<span style="font-family: Verdana, sans-serif;">Self-executing arbitral agreements are the most popular version of arbitral agreements. These agreements contain an arbitral clause that takes effect automatically once a dispute arises. In these circumstances, the statute that applies to the dispute on hand is ‘stayed from operating’ and the arbitral proceedings are considered a trial. The decision reached by the arbitrator is final and binding upon the parties. Another type of arbitral clause is where the arbitral clauses are not contained in the primary agreement between the parties, but are contained in a supplementary agreement or a set of by-laws that the parties agree to abide by. Here the parties would begin arbitration by resorting to the particular instrument that contains that provision for arbitration.</span></div>
<div style="text-align: justify;">
<br />
<span style="font-family: Verdana, sans-serif;">However, parties should take care to ensure that all disputes intended to be decided by arbitration are clearly set out in the arbitral clause. Courts cannot go outside the language of the arbitral clause, without further agreement of the parties. Ideally, an agreement intending to refer disputes arising under it to arbitration should also contain a clause stating that arbitrators have power to decide their own jurisdiction. In the absence of such a clause, and assuming the parties disagree as whether a particular dispute is ‘arbitrable’, then it would be referred to court which would have to decide as to whether the arbitrators have jurisdiction to deal with that particular dispute.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">In case of arbitral proceedings involving more than one country, a host of other factors come into play. Enforcement of a foreign arbitral award is more complicated and is subject to either the Geneva Convention on the Execution of Foreign Arbitral Awards 1927, or the more popular Convention on the Recognition and Enforcement of Foreign Arbitral Awards, better known as the New York Convention. The ease/difficulty of enforcing foreign arbitral awards differs from one jurisdiction to another and could be another article in itself!</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;"><i>Taken as whole, </i><b>arbitration as a dispute resolution mechanism can be an effective tool in avoiding exorbinant court costs and obtaining expedited resolution of disputes. It is well-worth getting familiar with it.</b></span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-62275288022094121812014-07-18T23:42:00.000-07:002015-06-24T23:18:36.637-07:00We’ve Been Sued! A Litigation Guide for Small And Growing Companies During The First 30 Days<div dir="ltr" style="text-align: left;" trbidi="on">
<h6 style="text-align: justify;">
<b><span style="font-family: Verdana, sans-serif; font-size: small;">The Clock Is Ticking</span></b></h6>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">So it’s happened, you have been served with a complaint, and now you have a lawsuit to defend. Whether this is the long awaited culmination of a drawn out business dispute, or a nasty surprise the company didn’t see coming, the clock is ticking. Courts take a no nonsense approach with deadlines, and missing one can have dire consequences.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Failing to file a responsive pleading can lead to an entry of default and eventual default judgment being entered against the company. Which means that you lost the case, or at minimum will have to pay the additional legal expenses of fighting for relief from the judgment, just to get back to square one.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">In California, for most claims you generally have 30 days from the time you were served the complaint to file a responsive pleading. Cal. Civ. Proc. Code §412.20. If you’ve been sued in Federal court, you may have as little as 21 days. Fed. Rule Civ. Proc. 12(a)(1). There are exceptions to these rules, for instance, unlawful detainer claims require a response in only 5 days! Cal. Civ. Proc. Code 1167, 1167.3.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">This is not an exorbitant amount of time considering that during this time the complaint will need to travel through corporate channels, an attorney will have to be hired (if you don’t currently have a litigation attorney you may need to interview several), money will have to be accumulated to pay the attorney’s retainer, corporate documents relevant to the complaint may need to be located and reviewed, and lastly, your attorney will need enough time to prepare the proper responsive pleadings.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">Depending on the complexity of the complaint, your attorney may need several days to prepare a responsive pleading. (I’ll discuss the most common responsive pleadings in a future post). Some pleadings like a simple answer may not require extensive research by the attorney and can be completed in several hours. Others like a demurrer, also known as a motion to dismiss in Federal court, may take several days, and or may need to be filed with additional pleadings like a motion to strike. These types of responsive pleadings can require a significant amount of legal research and time to draft properly.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">In short, the company should start building its defense team and working on its defense strategy within a few days of being served, and in cases where litigation is expected, the company should discuss the case with an attorney even prior to being served.</span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-34980377525424090752014-06-12T23:40:00.000-07:002015-06-24T23:18:49.380-07:00Small and Growing: A Law Blog for Growing Companies<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;">Welcome to Small and Growing, a California law blog for small to medium sized companies facing the threat of litigation. This blog aims to help explain the legal process when your company is sued or when you are forced to use the courts to enforce your rights. While litigation can often be avoided with proper planning and a good dose of business sense, even the best planning and business sense cannot stop some litigation. Inevitably, contracts get broken, disgruntled employees sue, clients refuse to pay, etc.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">If you have never been in court or even if you have seen a few lawsuits, this blog is for you. Use it to get informed, discuss, and ask questions about the often maligned and at times misunderstood world of business litigation– its tactics, purpose, and their ultimate effect on your business.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">As an attorney in the Silicon Valley and San Francisco Bay area, I will also attempt to address news about federal, state, and local laws and ordinances that affect litigation for local small and growing businesses.</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><br /></span>
<span style="font-family: Verdana, sans-serif;">If you have questions or wish to suggest future topics for the blog, feel free to contact me.</span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-63868444262444349462013-12-26T00:12:00.000-08:002015-07-08T00:12:50.150-07:00Incorporating a Company in Delaware<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">Corporate law is regulated by each state, in the United States.
This means that while there is no ‘federal corporations law’, each state
has its own corporate law code (many modeled upon the Model General
Commercial Code).</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<h6 style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><strong>What is the significance of the state of incorporation?</strong></span></span></h6>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">A company can establish its
headquarters, and do business in any state (not restricted to the
state of incorporation). The importance of the state of incorporation
lies in the fact that it establishes the legal domicile of the
corporation. Based on the ‘<em>internal affairs doctrine</em>’, the
law of the state of incorporation generally governs how disputes
between directors/officers of the Corporation and shareholders are
resolved.</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<h6 style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><strong>Delaware as the first choice</strong></span></span></h6>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">Delaware is neither a populous
nor geographically large state. However, it is the state
of incorporation for fifty-seven percent of U.S. public companies and
for fifty-nine percent of Fortune 500 companies. Delaware began to
acquire its present status in the early 20th century, by adopting a
corporate law code aimed at attracting and retaining more
incorporations. Due to the large number of companies incorporated in
Delaware, and the consequent litigation generated by them, Delaware’s
corporate law plays a central role in establishing corporate
governance norms for publicly traded corporations in the US.</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<h6 style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><strong>Why incorporate in Delaware?</strong></span></span></h6>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<h6 style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><strong>Established system of judge-made law: </strong></span></span></h6>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">The corporate law of Delaware is
known as the Delaware General Corporate Law or ‘DGCL’ and contains
extensive provisions regarding the formation, conduct and dissolution
of a corporation. However, even the DGCL is limited in its provisions
and interpretations. Several vital concepts in corporate law are
governed by common law, i.e., judge-made law. These include fiduciary
duties of directors, officers and controlling shareholders of the
corporation both in conducting the daily business of the corporation,
as well as in dealing with particular circumstances like mergers or
proxy contests. Delaware courts deal with a massive amount of
corporate litigation on a daily basis, which has led to the
establishment of a sound corporate jurisprudence. Outside of Delaware,
corporate law cases generally constitute only a tiny portion of a
judge’s typical case-load.</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<h6 style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><strong>A sound court system: </strong></span></span></h6>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">The Delaware Chancery court is a
uniquely established court with limited jurisdiction. It has a docket
of primarily corporate cases. These cases are heard by judges who are
experts in corporate law, as opposed to juries. Court decisions are
published in case-law reporters and are commercially available,
providing valuable guidance to practitioners.</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<h6 style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><strong>Reduced transaction costs: </strong></span></span></h6>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><a href="http://www.rubenruizlaw.com/index.php/attorney-profile/" target="_blank">Corporate lawyers</a>
develop an early familiarity with the extensive corporate case law laid
down by the courts of Delaware. This reduces transactional costs and
enables corporations incorporated in Delaware to plan with some
foresight and knowledge. Delaware does not charge income tax to
corporations incorporated within the State, which have their
business/headquarters and operations outside the state.</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">There is some argument among
scholars and practitioners that Delaware is losing its sheen as the
corporate law giant. However, for the foreseeable future, it is
unlikely that any other state will overtake Delaware as the favored
place of incorporation for sizable companies.</span></span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-29631983821455301872013-12-12T00:13:00.000-08:002015-07-08T00:14:29.904-07:00Arbitration as an Alternative Dispute Resolution Mechanism<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">Soaring litigation costs, possible delays and the dangers
and disadvantages in dealing with an unfamiliar jurisdiction are some
of the reasons that have led to the development of innovative dispute
resolution mechanisms in commercial contracts. </span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">
</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">Arbitration has evolved as one of the most popular along the various alternate <a href="http://www.rubenruizlaw.com/index.php/practice-areas/business-a-commercial-law/business-litigation/" target="_blank">dispute resolution mechanisms</a>
for several reasons. Arbitration clauses are generally favored by
courts – in the sense that courts usually give effect to arbitration
clauses, unless there are good reasons for another interpretation.
Unlike court proceedings, arbitral proceedings can be concluded behind
closed walls. This benefit of confidentiality is important to parties,
especially in cases where IP secrets or a great deal of monetary
damages are involved, and the parties to the dispute would prefer to
keep it out of media glare. But perhaps the most important advantage
offered by arbitration is the use of technically-qualified
arbitrators. Commercial disputes today require the services of experts
in the field, and it is a massive advantage if the dispute resolving
authority is itself composed of experts. </span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">
</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">Self-executing arbitral
agreements are the most popular version of arbitral agreements. These
agreements contain an arbitral clause that takes effect automatically
once a dispute arises. In these circumstances, the statute that
applies to the dispute on hand is ‘stayed from operating’ and the
arbitral proceedings are considered a trial. The decision reached by
the arbitrator is final and binding upon the parties. Another type of
arbitral clause is where the arbitral clauses are not contained in the
primary agreement between the parties, but are contained in a
supplementary agreement or a set of by-laws that the parties agree to
abide by. Here the parties would begin arbitration by resorting to the
particular instrument that contains that provision for arbitration.</span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">
</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">However, parties should take care
to ensure that all disputes intended to be decided by arbitration are
clearly set out in the arbitral clause. Courts cannot go outside the
language of the arbitral clause, without further agreement of the
parties. Ideally, an agreement intending to refer disputes arising
under it to arbitration should also contain a clause stating that
arbitrators have power to decide their own jurisdiction. In the
absence of such a clause, and assuming the parties disagree as whether
a particular dispute is ‘arbitrable’, then it would be referred to
court which would have to decide as to whether the arbitrators have
jurisdiction to deal with that particular dispute.</span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">
</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">In case of arbitral proceedings
involving more than one country, a host of other factors come into
play. Enforcement of a foreign arbitral award is more complicated and
is subject to either the Geneva Convention on the Execution of Foreign
Arbitral Awards 1927, or the more popular Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, better known
as the New York Convention. The ease/difficulty of enforcing foreign
arbitral awards differs from one jurisdiction to another and could be
another article in itself!</span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;">
</span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana,sans-serif;"><em>Taken as whole, </em>arbitration
as a dispute resolution mechanism can be an effective tool in
avoiding exorbinant court costs and obtaining expedited resolution of
disputes. It is well-worth getting familiar with it.</span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-51375547867712992452013-11-27T00:15:00.000-08:002015-07-08T00:16:32.664-07:00A Litigation Guide for Small And Growing Companies During The First 30 Days<div dir="ltr" style="text-align: left;" trbidi="on">
<h6 style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;"><strong>The Clock Is Ticking</strong></span></span></h6>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">So it’s happened, you have been
served with a complaint, and now you have a lawsuit to defend. Whether
this is the long awaited culmination of a drawn out business dispute,
or a nasty surprise the company didn’t see coming, the clock is
ticking. Courts take a no nonsense approach with deadlines, and
missing one can have dire consequences.</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">Failing to file a responsive
pleading can lead to an entry of default and eventual default judgment
being entered against the company. Which means that you lost the
case, or at minimum will have to pay the additional legal expenses of
fighting for relief from the judgment, just to get back to square one.</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">In California, for most claims
you generally have 30 days from the time you were served the complaint
to file a responsive pleading. Cal. Civ. Proc. Code §412.20. If
you’ve been sued in Federal court, you may have as little as 21 days.
Fed. Rule Civ. Proc. 12(a)(1). There are exceptions to these rules,
for instance, unlawful detainer claims require a response in only 5
days! Cal. Civ. Proc. Code §§ 1167, 1167.3</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">This is not an exorbitant amount
of time considering that during this time the complaint will need to
travel through corporate channels, an attorney will have to be hired
(if you don’t currently have a litigation attorney you may need to
interview several), money will have to be accumulated to pay the
attorney’s retainer, corporate documents relevant to the complaint may
need to be located and reviewed, and lastly, your attorney will need
enough time to prepare the proper responsive pleadings.</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">Depending on the complexity of
the complaint, your attorney may need several days to prepare a
responsive pleading. (I’ll discuss the most common responsive
pleadings in a future post). Some pleadings like a simple answer may
not require extensive research by the attorney and can be completed in
several hours. Others like a demurrer, also known as a motion to
dismiss in Federal court, may take several days, and or may need to be
filed with additional pleadings like a motion to strike. These types
of responsive pleadings can require a significant amount of legal
research and time to draft properly.</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">In short, the company should
start building its defense team and working on its defense strategy
within a few days of being served, and in cases where litigation is
expected, the company should discuss the case with an attorney even
prior to being served.</span></span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0tag:blogger.com,1999:blog-4125412522704687714.post-91993178219040470192013-11-14T00:17:00.000-08:002015-07-08T00:17:53.298-07:00Small and Growing : A Law Blog for Growing Companies<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">Welcome to Small and Growing, a California law blog for small to
medium sized companies facing the threat of litigation. This blog aims
to help explain the legal process when your company is sued or when you
are forced to use the courts to enforce your rights. While
litigation can often be avoided with proper planning and a good dose
of business sense, even the best planning and business sense cannot
stop some litigation. Inevitably, contracts get broken, disgruntled
employees sue, clients refuse to pay, etc.</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">If you have never been in court
or even if you have seen a few lawsuits, this blog is for you. Use it
to get informed, discuss, and ask questions about the often maligned
and at times misunderstood world of business litigation– its tactics,
purpose, and their ultimate effect on your business.</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">As an attorney in the Silicon
Valley and San Francisco Bay area, I will also attempt to address news
about federal, state, and local laws and ordinances that affect
litigation for local small and growing businesses.</span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">
</span></span></div>
<div style="text-align: justify;">
<span style="font-size: small;"><span style="font-family: Verdana,sans-serif;">If you have questions or wish to suggest future topics for the blog, feel free to contact me.</span></span></div>
</div>
Adminhttp://www.blogger.com/profile/08968191401049309686noreply@blogger.com0