Newsom Slashes $200M From Calif. Courts In New Budget

Create: 2020-07-01
Update: 2020-07-01
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California Gov. Gavin Newsom signed a state budget Monday that cuts $200 million in funding from the Golden State's court system, part of drastic measures taken to address an estimated $54 billion shortfall in the midst of the coronavirus pandemic.
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TOP NEWS

Newsom Slashes $200M From Calif. Courts In New Budget

California Gov. Gavin Newsom signed a state budget Monday that cuts $200 million in funding from the Golden State's court system, part of drastic measures taken to address an estimated $54 billion shortfall in the midst of the coronavirus pandemic.

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Sedgwick Trustee Files Suit Over Unpaid Legal Fees

Defunct law firm Sedgwick LLP has accused the Los Angeles Unified School District, two California companies, and a private individual of failing to pay up a combined $675,000 for legal services the firm provided, plus interest.

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Calif. OKs $202B Budget With Tax Hikes For Virus Deficit

California enacted a $202.1 billion budget that raises taxes, suspends business tax breaks and slashes revenue to make up a $54.3 billion deficit caused by the COVID-19 pandemic as the state continues to combat the virus.

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Calif. Appeals Court Revives 99 Cents Workers' Cert. Bids

A split California appellate court on Tuesday revived certification bids for two putative classes of 99 Cents Only Stores workers, ruling the trial court should have closely scrutinized 174 signed employee declarations produced by the retail giant stating the company did not commit labor code violations against graveyard shift workers.

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Key Senators Want To Add New Federal Judgeships This Year

The Republican chairman of the Senate Judiciary Committee was joined by the panel's Democrats on Tuesday in calling to create new federal judgeships for the first time in nearly 20 years, but the idea needs broader GOP support to move forward.

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PUBLIC POLICY

Coronavirus Regulations: A State-By-State Week In Review

As COVID-19 cases surged in multiple regions amid noncompliance with wearing face masks over the past week, governors of newly dubbed hot-spot states and their neighbors, even ones with declining cases and deaths, rushed to pause reopening activities such as indoor dining.

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REAL ESTATE & DEVELOPMENT

Weed Industry-Driven REIT Prices Upsized Offering For $225M

Real estate investment trust Innovation Industrial Partners announced Tuesday it hopes to raise roughly $225 million in an upsized public offering advised by Foley & Lardner LLP and DLA Piper LLP.

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Real Estate Rumors: Prologis, Oceanwide, Valley Bank

Prologis has reportedly paid $24.53 million for a Miami development site, Oceanwide Holdings' roughly $1 billion deal to sell a San Francisco mixed-use project has reportedly hit another delay, and Valley National Bank is said to have loaned $10.55 million for a Florida self-storage project.

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ENERGY & ENVIRONMENTAL

State AGs Slam Trump Order To Skirt Environmental Reviews

Attorneys general for 15 states and the District of Columbia warned the Trump administration that an executive order to bypass vigorous environmental reviews for infrastructure projects would run afoul of emergency provisions in federal law, even considering the COVID-19 pandemic.

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States Criticize EPA Push To Maintain Particulate Matter Regs

A coalition of states including Maryland and New York told the U.S. Environmental Protection Agency that fine and coarse particulate matter pollution kills thousands of people each year and the agency is wrong not to tighten its rules to better protect public health.

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PRODUCT LIABILITY

Bayer, Beiersdorf Can't Ditch Or Move Coppertone Claims

A California federal magistrate judge has denied a bid by Bayer HealthCare LLC and Beiersdorf Inc. to dismiss claims they misled customers by claiming Coppertone sunscreens are "mineral-based," saying the court does have jurisdiction over non-California residents in a class action.

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PERSONAL INJURY & MEDICAL MALPRACTICE

Calif. School District's Win Upheld In Student Suicide Suit

A California appellate court has upheld a public school district's trial win in a wrongful death suit over a student's suicide, saying the trial judge erred by allowing an improper claim to proceed to trial.

Opinion attached | Read full article »

PRIVACY & CONSUMER PROTECTION

Calif. Would Win EU Favor With Privacy Measure, Backer Says

The real estate developer-turned-activist behind an upcoming California ballot initiative that would expand the state's landmark privacy law defended the measure Tuesday, saying the revamp would likely make the European Union more open to lifting restrictions on transferring personal data to California. 

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Consumers Say Vaping Claims Aren't Barred In Juul MDL

Consumers in the federal multidistrict litigation over vaping told a California judge on Monday that federal law does not broadly bar their claims that Juul Labs Inc. and Altria Group Inc. hid the dangers of e-cigarettes in their marketing, saying that was not what Congress intended.

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INTELLECTUAL PROPERTY

Musician Seeks Cert. For Over 30K In SAG-AFTRA Suit

A musician accusing the Screen Actors Guild‐American Federation of Television and Radio Artists of draining millions of dollars from an artists' fund set up by Congress moved Monday in California federal court to certify a class of 30,000 session musicians and backup singers whose royalties had allegedly been "skimmed."

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MEDIA & ENTERTAINMENT

Discovery Paused In Pol's $435M Defamation Beef With CNN

A Manhattan federal judge said Tuesday that California Republican Rep. Devin Nunes must wait to take discovery of CNN in his $435 million suit alleging the news network defamed him with an allegedly false report that said he traveled to Ukraine to "dig up dirt" on presumptive Democratic presidential nominee Joe Biden.

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EMPLOYMENT & BENEFITS

Uber Wins Trim Of Sick Leave Claim From Wage Class Action

A California federal judge on Tuesday trimmed Uber drivers' sick leave claim from a putative class action alleging the ride-hailing giant deprived drivers of benefits by misclassifying them as independent contractors, but declined to dismiss other claims and gave drivers a chance to bolster the sick leave allegation.

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SECURITIES & BANKING

Robbins, WeissLaw To Lead Apple Suit Over Slow IPhones

Robbins LLP and WeissLaw LLP have won co-lead counsel status in a shareholder derivative action accusing Apple Inc.'s top brass of intentionally slowing down its older iPhone models after a California federal judge found that the firms had "an edge" over two competing firms.

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Nonbank Lender Urges Calif. Judge To End PPP Suit

Nonbank lender Fountainhead Commercial Capital LLC has asked a California federal judge to end litigation alleging the company disadvantaged small-dollar applicants for federal Paycheck Protection Program loans, arguing it had been appropriately transparent with would-be borrowers against the tumultuous backdrop of the coronavirus pandemic.

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SEC Fines Ex-Biotech CEO For Fertility Drug Misstatements

A former CEO of a biotech company focused on fertility treatments agreed Tuesday to pay over $119,000 to settle claims from the U.S. Securities and Exchange Commission that she misled investors about the availability and commercial prospects for a product.

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Nvidia Says Investor Suit Over Crypto Mining Sales Still Fails

Technology company Nvidia has asked a California federal judge to toss a shareholder suit accusing it of understating more than $1 billion in crypto-related sales, saying investors are "cherry-picking" portions of executives' statements to allege fraud.

Motion attached | Read full article »

COMPETITION

9th Circ. Won't Revive PetIQ Merger Challenge

The Ninth Circuit has declined to revive a pair of pet medicine wholesalers' challenge to PetIQ Inc.'s purchase of a veterinary clinic chain, ruling that the wholesalers failed to establish the merged company's market power.

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PRIVATE EQUITY

Summit Partners Snags $2.2B Total For 2 Investment Funds

Summit Partners said Tuesday that it wrapped up two funds totaling about $2.2 billion, one that will target equity investments in companies based in Europe and another that will focus on growth-stage companies headquartered in North America.

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Ropes Helps B Capital Grab $820M For Sophomore Fund

B Capital Group, a tech-focused investment firm formed by the co-founder of Facebook and an ex-Bain Capital executive, said Tuesday that it has wrapped up its second fund after securing $820 million from investors, with assistance from Ropes & Gray LLP.

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PEOPLE

Procopio Boosts IP Practice In Calif. With 7 Arent Fox Attys

Procopio Cory Hargreaves & Savitch LLP said Tuesday that it has hired seven patent attorneys from Arent Fox LLP, including two partners experienced in 5G technology and medical devices, to expand the firm's intellectual property practice in California.

Read full article »

EXPERT ANALYSIS

How Calif. Privacy Rights Act Could Shape Privacy Landscape

If California voters support the California Privacy Rights Act in November, it will become a permanent baseline for California privacy law, increase the already demanding requirements of the California Consumer Privacy Act, and potentially redefine informational privacy for the entire U.S., say Lauren Kitces and Lydia de la Torre at Squire Patton.

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Arbitration Pact Rulings Show Signature Snags For Employers

Two recent appellate opinions highlight the challenges in proving specific employees signed arbitration agreements, but employers can take certain steps to defend such claims and ensure enforcement, say Ryan Glasgow and Tyler Laughinghouse at Hunton.

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Why FDA's Proposed Food Standard Principles Are Important

Food manufacturers should carefully consider the U.S. Food and Drug Administration's proposed general principles for creating, modifying and eliminating food standards, because they may complicate branding and advertising efforts for facsimiles of well-known foods, say attorneys at Wilson Sonsini.

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What You Say In Online Mediation May Be Discoverable

Mediation conducted online with participants in different states makes it harder to determine where communications were made, increasing the risk that courts will apply laws of a state that does not protect mediation confidentiality, say mediators Jeff Kichaven and Teresa Frisbie and law student Tyler Codina.

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LEGAL INDUSTRY

2nd Circ. Frees Attorneys Accused Of Molotov Attack

The Second Circuit on Tuesday freed a pair of attorneys accused of torching a New York Police Department car during recent protests sparked by the death of George Floyd at the hands of the Minneapolis police, finding no clear error in the lower courts.

Read full article »

Kasowitz Faces 3rd Suit Alleging Partner Was Wrongly Fired

A former "rainmaker" for Kasowitz Benson Torres LLP followed two ex-partners in suing the firm over an allegedly wrongful firing, claiming Kasowitz brought him on with promises of lucrative business opportunities only to ditch him when he began suffering from mental illness.

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Bainbridge Of Pierce Bainbridge Sets Up Own Firm In Calif.

James Bainbridge, the last remaining name partner at Pierce Bainbridge Beck Price & Hecht LLP besides founder John Pierce, has set up his own law office in California but will remain affiliated with the struggling firm.

Read full article »

DC Bar OKs Cryptocurrency Payments For Legal Fees

The District of Columbia Bar has given lawyers the green light to accept cryptocurrencies in exchange for legal services, although the body's ethics opinion said attorneys should take care to ensure the arrangements are fair and that the payments are secure.

Read full article »

NY Law Firm Hits Hartford With COVID-19 Coverage Suit

New York law firm Siegel & Siegel PC has hit Hartford Casualty Insurance Co. with a proposed class action alleging the insurer has wrongfully denied coverage of losses incurred thanks to the coronavirus pandemic, joining the ever-growing number of businesses across the country making similar claims.

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NY Courthouses To Check Body Temps: 100° Or Less To Enter

New York state court officials on Tuesday announced that attorneys and other visitors will soon be required to submit to a body temperature check by officers at courthouse doors — if the thermometer reads over 100 degrees, no entry will be permitted.

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Colo. Justices Say Courts Can Extend Speedy Trial Period

The Colorado Supreme Court has established criteria by which trial courts can grant requests for postponement and a tolling of speedy trial periods because of the COVID-19 pandemic, noting that the courts are facing a Catch-22 as they try to balance defendants' rights and scheduling concerns.

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Legal Diversity Pros Urge Concrete Change From Leaders

Amid a recent push in the legal industry to commit to diversity and inclusion, experts on Tuesday said they worry momentum on the issue could slow down and urged legal leaders to make institutional changes, including tying money to diversity initiatives.

Read full article »

Ex-King & Spalding Atty Says Benefits Cutoff Violated Law

A former King & Spalding LLP global finance partner says the Reliance Standard Life Insurance Company violated federal law and ignored medical evidence when it cut off his benefits after he suffered blood and lung complications stemming from a gene mutation.

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Top US Trade Official Who Led China Talks To Rejoin Skadden

Jeffrey Gerrish, the deputy U.S. trade representative who played a lead role in brokering this year's hard-fought trade pact with China, will rejoin Skadden Arps Slate Meagher & Flom LLP in August, the firm announced Tuesday.

Read full article »

MSG Entertainment Hires First GC After April Spinoff

Madison Square Garden Entertainment Corp. has handed the job of general counsel to an attorney with years of experience in the entertainment industry, including at Metro-Goldwyn-Mayer Studios Inc., the company said Monday, about two months after it became a standalone business.

Read full article »

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