Legal Advice Blog: Legal Advice, Case Insights, & Local Law Information

Business partners have a legal obligation to act in the best interests of the partnership and other partners, collectively referred to as fiduciary duties. It is what keeps a partnership alive and running since it enables the partners to work towards a common purpose rather than pursuing individual goals. If you are in a partnership or planning around one, it helps to understand what the law says regarding the duties of each partner. That way, running the partnership and avoiding legal issues will be easier. THE LAW IN CALIFORNIA California’s Corporation Code governs the legal relationship among business partners. It outlines each partner’s fiduciary duties to others and the partnership. The law specifies three main fiduciary duties of partners in a business partnership, as explained below. The duty of loyalty requires partners to avoid engaging in any actions that would harm the partnership. This duty includes a requirement to disclose any conflicts of interest and to refrain from competing with the partnership or using it for personal gain. The duty of care requires partners to exercise reasonable care and skill in managing the partnership’s affairs. This duty includes a requirement to make informed decisions and to act prudently and diligently. The duty of good faith and fair dealing requires partners to act honestly, in alignment with the partnership’s rules, purpose and mission. It is worth noting that fiduciary duties cannot be waived by agreement or otherwise. They remain in place as long as the partnership exists. In addition, the non-breaching parties are entitled to a remedy for a breach of fiduciary duty by a partner. DEALING WITH A PARTNER BREACH OF FIDUCIARY DUTY When a partner violates their fiduciary duty, it can hurt the company. The business could lose money or miss out on opportunities due to the selfish actions of a few. Every situation is different. The most crucial thing is that you respond appropriately and promptly. Therefore, it is essential to seek legal help on how best to deal with such a situation and protect your business interests.

Even the surest business venture comes with unforeseeable risks. Disruption in the supply chain might leave production facilities idle for months and push a company to the brink of insolvency. A few poor hiring choices could lead to a substantial drop in quality and expensive product liability claims could lead to the closure of the company. Creditors, employees and unhappy clients could all pursue expensive lawsuits against a company. Yet, entrepreneurs and investors do not have to blindly accept risk simply because they want to run a business. They can proactively address known risk factors to limit their exposure. They can also purchase insurance. Numerous types of insurance are available to help organizations limit their risk. 1. GENERAL LIABILITY COVERAGE Any time someone gets hurt or there is an incident that causes property damage, a business could be at risk of a lawsuit. General liability coverage is a great starting point for protecting the organization and its leadership from injury claims. 2. PREMISES LIABILITY COVERAGE Any business with a physical location that employees or members of the public visit could end up subject to claims when people get hurt at that property. Premises liability coverage is an important addition to a general business policy for most organizations with offices or retail spaces open to the public. 3. PRODUCT LIABILITY COVERAGE Any company producing products either for retail sale or used by other businesses will have the risk of product failures causing injury or property damage. Product liability coverage helps protect businesses against financial claims if one of their products causes a fighter or electrocutes someone. 4. ERRORS AND OMISSIONS COVERAGE Businesses that provide professional services may need to carry insurance that protects them against mistakes when working with clients that would be comparable in many ways to product liability coverage for businesses that sell goods. Lawyers, doctors and similar professionals may need to carry specialized malpractice coverage. 5. BUSINESS INTERRUPTION INSURANCE Any organization with substantial facility expenses or multiple staff members may need to consider investing in business Interruption coverage. Such insurance can cover rent and even staffing expenses when a business cannot operate due to extenuating circumstances, like a natural disaster. Organizations that carry appropriate kinds of insurance can benefit from the knowledge that their daily operations have invested in protection from the uncertainties of an ever-shifting market and legal climate. Learning more about business insurance and securing the right coverage with the assistance of an experienced legal professional can help entrepreneurs and business owners who are worried about liability risks.

Even the surest business venture comes with unforeseeable risks. Disruption in the supply chain might leave production facilities idle for months and push a company to the brink of insolvency. A few poor hiring choices could lead to a substantial drop in quality and expensive product liability claims could lead to the closure of the company. Creditors, employees and unhappy clients could all pursue expensive lawsuits against a company. Yet, entrepreneurs and investors do not have to blindly accept risk simply because they want to run a business. They can proactively address known risk factors to limit their exposure. They can also purchase insurance. Numerous types of insurance are available to help organizations limit their risk. 1. GENERAL LIABILITY COVERAGE Any time someone gets hurt or there is an incident that causes property damage, a business could be at risk of a lawsuit. General liability coverage is a great starting point for protecting the organization and its leadership from injury claims. 2. PREMISES LIABILITY COVERAGE Any business with a physical location that employees or members of the public visit could end up subject to claims when people get hurt at that property. Premises liability coverage is an important addition to a general business policy for most organizations with offices or retail spaces open to the public. 3. PRODUCT LIABILITY COVERAGE Any company producing products either for retail sale or used by other businesses will have the risk of product failures causing injury or property damage. Product liability coverage helps protect businesses against financial claims if one of their products causes a fighter or electrocutes someone. 4. ERRORS AND OMISSIONS COVERAGE Businesses that provide professional services may need to carry insurance that protects them against mistakes when working with clients that would be comparable in many ways to product liability coverage for businesses that sell goods. Lawyers, doctors and similar professionals may need to carry specialized malpractice coverage. 5. BUSINESS INTERRUPTION INSURANCE Any organization with substantial facility expenses or multiple staff members may need to consider investing in business Interruption coverage. Such insurance can cover rent and even staffing expenses when a business cannot operate due to extenuating circumstances, like a natural disaster. Organizations that carry appropriate kinds of insurance can benefit from the knowledge that their daily operations have invested in protection from the uncertainties of an ever-shifting market and legal climate. Learning more about business insurance and securing the right coverage with the assistance of an experienced legal professional can help entrepreneurs and business owners who are worried about liability risks.

In some cases, real estate investors are not going to be able to agree on what to do with the property that they own. Maybe you and a partner started an investment firm. You purchased some property and now you want to sell. Your partner doesn’t want to sell and doesn’t believe it’s the right time. What are you supposed to do? If a case like this goes to court, the court may use a tool known as a partition action. This is done to divide real property between two individuals. There are two ways to do it, which we will examine below. SPLITTING THE PROPERTY ITSELF First and foremost, you can use a partition in kind. This divides the property itself. You end up with different ownership shares and the paperwork is adjusted to show that you both own a different portion of that property. This way, one person could sell their portion and the other person could retain theirs, dividing their investment. SPLITTING UP THE EARNINGS The other type of partition action focuses on dividing the money earned in the sale. This is done if it’s a type of property that can’t realistically be divided between two owners. The only remaining outcome is to sell the property to a third party and then split the money between the two owners. This isn’t necessarily the ideal outcome for all involved, but it might be the only one that makes sense. Either way, if you find yourself in a dispute with your investment partner, it’s important to know about all of the legal options at your disposal. You may have a lot of money on the line and you need to know what steps you can take.

In some cases, real estate investors are not going to be able to agree on what to do with the property that they own. Maybe you and a partner started an investment firm. You purchased some property and now you want to sell. Your partner doesn’t want to sell and doesn’t believe it’s the right time. What are you supposed to do? If a case like this goes to court, the court may use a tool known as a partition action. This is done to divide real property between two individuals. There are two ways to do it, which we will examine below. SPLITTING THE PROPERTY ITSELF First and foremost, you can use a partition in kind. This divides the property itself. You end up with different ownership shares and the paperwork is adjusted to show that you both own a different portion of that property. This way, one person could sell their portion and the other person could retain theirs, dividing their investment. SPLITTING UP THE EARNINGS The other type of partition action focuses on dividing the money earned in the sale. This is done if it’s a type of property that can’t realistically be divided between two owners. The only remaining outcome is to sell the property to a third party and then split the money between the two owners. This isn’t necessarily the ideal outcome for all involved, but it might be the only one that makes sense. Either way, if you find yourself in a dispute with your investment partner, it’s important to know about all of the legal options at your disposal. You may have a lot of money on the line and you need to know what steps you can take.

If you own or manage any kind of property in the Los Angeles area, you know that California has some of the strongest accessibility regulations in the country. That includes residential properties available to rent. Of course, there are federal regulations as well. These include the Americans with Disabilities Act (ADA), which became law in 1990 as well as the Fair Housing Act of 1968 and the Rehabilitation Act of 1973 California’s Fair Employment and Housing Act (FEHA) also details accessibility regulations. What if you are simply renting out a home that you bought as an investment property or a condo that you no longer use? If, like many properties in the area, it was built in the early part of the 20th century (or even a little later), it may not have the accessible features like step-free entrances or wide doorways that some people need. All disabilities don’t involve mobility. Maybe you have a potential deaf renter who needs a special doorbell that alerts them when someone is at the door. WHO IS RESPONSIBLE FOR PAYING FOR THE MODIFICATIONS? This is where the regulations around reasonable modifications come in. Renters have a right to make reasonable modifications to the property or request that the landlord make them. It’s important to know when you as a landlord are required to pay for these modifications and when the renter can be required to do so (as well as footing the bill for removing them when they move out). Typically, if a requested modification brings the property into ADA compliance, the property owner must pay for it. If it’s not required under the law, but a tenant needs it to be able to live there, they would need to show that they can pay for it (and its removal). It’s important to remember that anyone can become disabled at any point in their lives. A renter who was in perfect physical condition when they moved in could be in a devastating car crash that makes their home uninhabitable for them without modifications. This is just a brief look at what L.A. property owners and managers need to know when a potential or current renter requests accessibility modifications. It’s wise to learn more about your obligations as well as your rights under the laws to help avoid costly legal issues.

If you own or manage any kind of property in the Los Angeles area, you know that California has some of the strongest accessibility regulations in the country. That includes residential properties available to rent. Of course, there are federal regulations as well. These include the Americans with Disabilities Act (ADA), which became law in 1990 as well as the Fair Housing Act of 1968 and the Rehabilitation Act of 1973 California’s Fair Employment and Housing Act (FEHA) also details accessibility regulations. What if you are simply renting out a home that you bought as an investment property or a condo that you no longer use? If, like many properties in the area, it was built in the early part of the 20th century (or even a little later), it may not have the accessible features like step-free entrances or wide doorways that some people need. All disabilities don’t involve mobility. Maybe you have a potential deaf renter who needs a special doorbell that alerts them when someone is at the door. WHO IS RESPONSIBLE FOR PAYING FOR THE MODIFICATIONS? This is where the regulations around reasonable modifications come in. Renters have a right to make reasonable modifications to the property or request that the landlord make them. It’s important to know when you as a landlord are required to pay for these modifications and when the renter can be required to do so (as well as footing the bill for removing them when they move out). Typically, if a requested modification brings the property into ADA compliance, the property owner must pay for it. If it’s not required under the law, but a tenant needs it to be able to live there, they would need to show that they can pay for it (and its removal). It’s important to remember that anyone can become disabled at any point in their lives. A renter who was in perfect physical condition when they moved in could be in a devastating car crash that makes their home uninhabitable for them without modifications. This is just a brief look at what L.A. property owners and managers need to know when a potential or current renter requests accessibility modifications. It’s wise to learn more about your obligations as well as your rights under the laws to help avoid costly legal issues.

Dogs may be a man’s best friend. However, they can be a landlord’s worst nightmare. And this explains why most landlords include a “no pet “clause in their lease contracts. So, what happens when a tenant brings a pet into a rented property without your consent? Regardless of how you feel about the tenant bringing a dog into the rented property, it is important that your actions are informed by the law. UNDERSTANDING CALIFORNIA’S “REASONABLE ACCOMMODATION” LAW California law requires housing providers, including landlords, to make “reasonable accommodations” for renters. Basically, this refers to an exception, adjustment or change in rules, practices, services or policies that is necessary for individuals living with disabilities to adequately use and enjoy their rented property. One of these accommodations may involve allowing an ailing or a disabled tenant to own an assistance animal despite the existence of a “no-pet” policy. WHAT TYPES OF ANIMALS DO THE “REASONABLE ACCOMMODATION” RULE APPLY TO? Under California law, the following animals fall under the “assistance animals” category: Service animals – these animals are specially trained to offer specific assistance to disabled individuals, including those with mental health disabilities. These include: Service dogs – these dogs are trained to perform rescue work, pull wheelchairs or collect dropped items. Guide dogs – these dogs are trained by licensed trainers Signal dogs – these dogs are trained to alert owners with hearing difficulty Miniature horses – these horses are trained to perform similar tasks as service dogs Support animals – these animals provide cognitive, emotional or other support to disabled individuals. Also known as emotional support or comfort animals, these animals may or may not be trained. CAN YOU TERMINATE A LEASE CONTRACT IF A TENANT VIOLATES A “NO PET” POLICY? The answer to this question depends on a number of factors, including whether the animal in question could reasonably be considered an assistance or support animal. With that said, understanding California’s tenancy laws can help you protect your rights and interests while dealing with a tenant who seems to have violated a “no pet” policy.

Dogs may be a man’s best friend. However, they can be a landlord’s worst nightmare. And this explains why most landlords include a “no pet “clause in their lease contracts. So, what happens when a tenant brings a pet into a rented property without your consent? Regardless of how you feel about the tenant bringing a dog into the rented property, it is important that your actions are informed by the law. UNDERSTANDING CALIFORNIA’S “REASONABLE ACCOMMODATION” LAW California law requires housing providers, including landlords, to make “reasonable accommodations” for renters. Basically, this refers to an exception, adjustment or change in rules, practices, services or policies that is necessary for individuals living with disabilities to adequately use and enjoy their rented property. One of these accommodations may involve allowing an ailing or a disabled tenant to own an assistance animal despite the existence of a “no-pet” policy. WHAT TYPES OF ANIMALS DO THE “REASONABLE ACCOMMODATION” RULE APPLY TO? Under California law, the following animals fall under the “assistance animals” category: Service animals – these animals are specially trained to offer specific assistance to disabled individuals, including those with mental health disabilities. These include: Service dogs – these dogs are trained to perform rescue work, pull wheelchairs or collect dropped items. Guide dogs – these dogs are trained by licensed trainers Signal dogs – these dogs are trained to alert owners with hearing difficulty Miniature horses – these horses are trained to perform similar tasks as service dogs Support animals – these animals provide cognitive, emotional or other support to disabled individuals. Also known as emotional support or comfort animals, these animals may or may not be trained. CAN YOU TERMINATE A LEASE CONTRACT IF A TENANT VIOLATES A “NO PET” POLICY? The answer to this question depends on a number of factors, including whether the animal in question could reasonably be considered an assistance or support animal. With that said, understanding California’s tenancy laws can help you protect your rights and interests while dealing with a tenant who seems to have violated a “no pet” policy.

The real estate industry is one of the most extensive businesses. Different options exist, including commercial real estate (CRE). Most developers gravitate towards this type of investment, as it offers significant benefits. The following are four reasons to invest in commercial real estate. Higher earning potential CRE has a higher earning potential due to the rent collected from tenants. And the income it brings in may be more, depending on the location, economy and other external factors. Even after paying taxes and maintaining the property, CRE has proven to have a higher return on investment. Stable income The setup of renting or leasing CRE guarantees steady income to investors. Compared to residential real estate, CRE has more extended leasing periods. Besides, their rental value is high – investors can get a reliable monthly income. Aligned goals Since your clients will be businesses, the chances are your goals align. For instance, a tenant will want to keep their store in good condition to attract clients, which is also your goal. While doing this, they help you protect the value of the investment and lower maintenance expenses, and in most cases, tenants are responsible for the maintenance of their space. Besides, a tenant would not want to be evicted from an area that brings them high profits. Thus, you may rarely encounter difficult clients or those whose behavior threatens the property. Get more clients Entrepreneurs know each other. When you get one tenant, and they confirm your property is top-notch and favorable for business, they will inform someone they know, a potential tenant, of the property. This may also be the case if you invest in apartment buildings. CRE is a secure and profitable investment. However, you should obtain adequate information to protect your investment.

The real estate industry is one of the most extensive businesses. Different options exist, including commercial real estate (CRE). Most developers gravitate towards this type of investment, as it offers significant benefits. The following are four reasons to invest in commercial real estate. Higher earning potential CRE has a higher earning potential due to the rent collected from tenants. And the income it brings in may be more, depending on the location, economy and other external factors. Even after paying taxes and maintaining the property, CRE has proven to have a higher return on investment. Stable income The setup of renting or leasing CRE guarantees steady income to investors. Compared to residential real estate, CRE has more extended leasing periods. Besides, their rental value is high – investors can get a reliable monthly income. Aligned goals Since your clients will be businesses, the chances are your goals align. For instance, a tenant will want to keep their store in good condition to attract clients, which is also your goal. While doing this, they help you protect the value of the investment and lower maintenance expenses, and in most cases, tenants are responsible for the maintenance of their space. Besides, a tenant would not want to be evicted from an area that brings them high profits. Thus, you may rarely encounter difficult clients or those whose behavior threatens the property. Get more clients Entrepreneurs know each other. When you get one tenant, and they confirm your property is top-notch and favorable for business, they will inform someone they know, a potential tenant, of the property. This may also be the case if you invest in apartment buildings. CRE is a secure and profitable investment. However, you should obtain adequate information to protect your investment.

Finding the right property can allow customers to start patronizing a new business quickly, but opening a physical location will also drastically increase an organization’s operating expenses. Any new commercial lease likely comes with several years of payment requirements. In addition to the base rent amount, there will usually be additional fees assessed to commercial tenants. Those renting a space in a multi-unit building or development, like a strip mall or office complex, will likely have to pay common area maintenance (CAM) fees for the spaces that they share with the landlord and other tenants. Although landlords often suggest a set fee or a specific percentage of the overall costs, tenants may want to try to negotiate those terms to arrive at a more favorable agreement. What are some of the reasons for a new commercial tenant to ask for concessions related to CAM fees? 1. THEY WON’T HAVE MUCH CUSTOMER TRAFFIC Exactly how a landlord determines the percentage of CAM fees that each tenant pays can vary depending on the amenities provided. Often, the traffic in and out will be a major consideration. The visitors at a retail storefront, for example, create parking and security demands. The less a business model relies on customer or client traffic, the lower the business’s demand concerning shared infrastructure will be. 2. THEY WILL HAVE FEW OR NO EMPLOYEES Much like customers, workers for commercial tenants are often expensive for commercial landlords. They use shared bathroom facilities and need someone working security to ensure they don’t end up mugged on their way to their car in the parking lot. When an organization does not have many employees, that can reduce the utilities and other services required by the commercial tenant and could therefore help convince the landlord to reduce the CAM fees the tenant will pay. Any reason to believe that a business will place less demand on shared resources or require less support from the landlord could influence the appropriate amount of CAM fees. Those who are focused on developing a business may have a hard time handling the negotiations often involved in securing a commercial lease. Seeking proper legal support can make it easier for entrepreneurs to review and negotiate commercial leases so that they can benefit from the most favorable terms possible.