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

You may have the drive and determination to fulfill several companies. However, the reality is that you also need capital to bring your ideas to fruition. Bringing in outside sources of help can be a daunting prospect, especially when you have invested so much of your own time and money into growing your company. Fortunately, there are several ways to tell whether or not a potential investment partner is for you. What role do they intend to play? Do you need a silent partner or someone who can take on a more hands-on approach? This is an important question to ask yourself when seeking investment partners. A bold and intrusive personality could disrupt the whole flow of your company, as well as upset key staff. It is vital that any investment partners fit in with the successful culture of your organization, rather than opting to dismantle it. Are your values compatible? Your company may pride itself on being open and honest with customers as well as treating staff with the dignity they deserve. Does your potential investment partner feel the same way? The corporate world can be a ruthless place at times, and your core values might not be shared by everyone. Although small compromises are always necessary for the business, you may regret sacrificing the key principles that your business is founded upon. Growing your company can be a significant challenge, but with appropriate investment, you can get there. Choosing the right partners and colleagues will be crucial to your success. You should also keep in mind your legal rights as an entrepreneur in California.

After notifying your landlord several times about an issue in your apartment, you have run out of patience. The problem has not been repaired or resolved. You turn to a state agency that helps tenants in tenant-landlord disputes. After the agency contacts your landlord, you receive a phone call, threatening to evict you because of your phone call to the agency. Retaliation is seeking revenge for a tenant’s legal action A retaliatory eviction is a form of seeking revenge. Your landlord is not allowed to threaten to evict you because you exercised your legal right to complain about the upkeep of the property. By not making repairs, your landlord is effectively violating the terms of your lease. Aside from an illegal threat (or act) of eviction, other retaliatory acts may not be allowed. These include: Raising the rent after you request repairs Harassing you verbally over the repair requests Accusing you of not paying your rent on time Claiming that you’ve forfeited your security deposit for some bogus reason Small, petty actions, like locking you out of the laundry room Effectively evicting you by changing the locks or turning off the utilities Suddenly writing you up or sending you notices about “problems” that were never a problem before While your landlord might not appreciate your requests or your actions, they are not allowed to use any kind of retaliatory action against you. Make sure your landlord follows the lease you signed Learning about how you can protect yourself in matters related to a retaliatory eviction can help you if something goes wrong. When all else fails, however, don’t hesitate to seek legal assistance.

After notifying your landlord several times about an issue in your apartment, you have run out of patience. The problem has not been repaired or resolved. You turn to a state agency that helps tenants in tenant-landlord disputes. After the agency contacts your landlord, you receive a phone call, threatening to evict you because of your phone call to the agency. Retaliation is seeking revenge for a tenant’s legal action A retaliatory eviction is a form of seeking revenge. Your landlord is not allowed to threaten to evict you because you exercised your legal right to complain about the upkeep of the property. By not making repairs, your landlord is effectively violating the terms of your lease. Aside from an illegal threat (or act) of eviction, other retaliatory acts may not be allowed. These include: Raising the rent after you request repairs Harassing you verbally over the repair requests Accusing you of not paying your rent on time Claiming that you’ve forfeited your security deposit for some bogus reason Small, petty actions, like locking you out of the laundry room Effectively evicting you by changing the locks or turning off the utilities Suddenly writing you up or sending you notices about “problems” that were never a problem before While your landlord might not appreciate your requests or your actions, they are not allowed to use any kind of retaliatory action against you. Make sure your landlord follows the lease you signed Learning about how you can protect yourself in matters related to a retaliatory eviction can help you if something goes wrong. When all else fails, however, don’t hesitate to seek legal assistance.

Finding the right business partner is no easy task. You need to ensure that the people you work with share your core values and vision for the company. You may have gotten yourself to this point and committed to an arrangement, only for things to turn sour at later date. The reality is that at least 70% of business partnerships fail. There are ways around this and tackling issues head-on at an early stage is extremely important. Outlined below are some signs that your business partnership could be in trouble: When there’s a breakdown in communication Is your business partner giving you the cold shoulder? Perhaps they are irritable when you do make contact? A solid business partnership is founded on effective communication. If you have caught your colleague in a lie, or simply cannot get an answer out of them, this is likely to harm your company in the long run. When nobody is interested in finding solutions It is rare for a business not to run into roadblocks on occasion. What’s important is that these obstacles are navigated as a team. If your partner is highlighting problems without considering possible solutions, this could spell trouble. A positive outlook is generally needed to come through the other side when things get tough. When the workload becomes one-sided In any successful corporation, all team members pull their weight. A lack of work ethic could be a sign that your partner has lost interest. You shouldn’t be placed in a position where you are constantly forced to pick up the slack. Productivity is a key aspect in hitting all of your targets and staying on course. If you and your business partner are at loggerheads, it is important not to panic. By having a firm understanding of your legal rights, you will be able to find a solution.

Finding the right business partner is no easy task. You need to ensure that the people you work with share your core values and vision for the company. You may have gotten yourself to this point and committed to an arrangement, only for things to turn sour at later date. The reality is that at least 70% of business partnerships fail. There are ways around this and tackling issues head-on at an early stage is extremely important. Outlined below are some signs that your business partnership could be in trouble: When there’s a breakdown in communication Is your business partner giving you the cold shoulder? Perhaps they are irritable when you do make contact? A solid business partnership is founded on effective communication. If you have caught your colleague in a lie, or simply cannot get an answer out of them, this is likely to harm your company in the long run. When nobody is interested in finding solutions It is rare for a business not to run into roadblocks on occasion. What’s important is that these obstacles are navigated as a team. If your partner is highlighting problems without considering possible solutions, this could spell trouble. A positive outlook is generally needed to come through the other side when things get tough. When the workload becomes one-sided In any successful corporation, all team members pull their weight. A lack of work ethic could be a sign that your partner has lost interest. You shouldn’t be placed in a position where you are constantly forced to pick up the slack. Productivity is a key aspect in hitting all of your targets and staying on course. If you and your business partner are at loggerheads, it is important not to panic. By having a firm understanding of your legal rights, you will be able to find a solution.

If you live in the Los Angeles area, you likely know someone who at one point lived in someone else’s garage because that was all they could afford – or maybe that person was you. People moving to California from other parts of the country can experience serious sticker shock at the cost of renting even a small apartment. Most of these garages, which fall under the more sophisticated term of accessory dwelling unit (ADU), have not always been legal under California law. As California lawmakers have worked to tackle the state’s serious shortage of affordable housing, these laws are changing. In fact, The New York Times recently featured a story about a man who had been living in his parents’ garage behind their home for years. The architecture student converted the space into one that many apartment dwellers would envy. As he noted, however, he’s only been living there legally for a few months. What makes a garage a legally “habitable space?” Even with California housing laws becoming more lenient, that doesn’t mean you can automatically rent out a garage as a home. It has to be habitable space. Specific requirements must be met. Not doing so can result in significant fines. In fact, even letting someone stay overnight in your garage, if it hasn’t been properly converted, can get you fined. While individual city and county laws vary, to be considered a “habitable space,” a garage (or shed or any other structure on a property) that is used in part for sleeping must meet some basic requirements regarding ceiling height, natural ventilation and light, window size, temperature and more. It must have a smoke detector, electrical outlets, plumbing and a lock. It cannot have a gas water heater and can no longer be used as a “garage” in the sense of someplace to park vehicles. If you own one or more real estate properties that have structures you’d like to turn into ADUs that you can rent, it’s crucial to know and abide by all of the relevant local and state laws and regulations. The best way to ensure that you’re in compliance is to have experienced legal guidance.

If you live in the Los Angeles area, you likely know someone who at one point lived in someone else’s garage because that was all they could afford – or maybe that person was you. People moving to California from other parts of the country can experience serious sticker shock at the cost of renting even a small apartment. Most of these garages, which fall under the more sophisticated term of accessory dwelling unit (ADU), have not always been legal under California law. As California lawmakers have worked to tackle the state’s serious shortage of affordable housing, these laws are changing. In fact, The New York Times recently featured a story about a man who had been living in his parents’ garage behind their home for years. The architecture student converted the space into one that many apartment dwellers would envy. As he noted, however, he’s only been living there legally for a few months. What makes a garage a legally “habitable space?” Even with California housing laws becoming more lenient, that doesn’t mean you can automatically rent out a garage as a home. It has to be habitable space. Specific requirements must be met. Not doing so can result in significant fines. In fact, even letting someone stay overnight in your garage, if it hasn’t been properly converted, can get you fined. While individual city and county laws vary, to be considered a “habitable space,” a garage (or shed or any other structure on a property) that is used in part for sleeping must meet some basic requirements regarding ceiling height, natural ventilation and light, window size, temperature and more. It must have a smoke detector, electrical outlets, plumbing and a lock. It cannot have a gas water heater and can no longer be used as a “garage” in the sense of someplace to park vehicles. If you own one or more real estate properties that have structures you’d like to turn into ADUs that you can rent, it’s crucial to know and abide by all of the relevant local and state laws and regulations. The best way to ensure that you’re in compliance is to have experienced legal guidance.

If you’re starting a private equity, venture capital or other investment business, its success and reputation will be dependent on one or more “key” people to make and manage investments. That’s why it’s wise to include a key man (KM) clause in the contracts of your executives and others who are key to your business. This clause prohibits the business or any fund manager from making an investment of the designated key person(s) if they won’t be around or able to devote sufficient time to the investment. This could occur not just through resignation, termination or death. A KM clause might need to be invoked if a person takes a leave of absence or simply no longer has the necessary time to devote to their responsibilities. The key people named in this clause don’t necessarily have to be partners or other executives with the company. However, they are people whose experience, skills and knowledge in sales, product development and other areas are crucial to the business’s success. A key man clause helps the business and its clients Having a KM clause can help reassure potential investors that their money will by the people in whom they’re placing their trust. A KM clause also protects the company if one of their primary decision-makers leaves or cannot devote enough time to the business. Including the clause is just the first step. You need to detail what the business will do if a key person dies, leaves the company or is otherwise unable to fulfill their responsibilities, such as hiring someone new or training someone to take over. A timeline for this transition needs to be included in the replacement plan. You may also want to invest in key man insurance. This can compensate the company if you suffer losses because a key individual is no longer there. However, it’s much better to have a contractual clause and replacement plan in place so that you don’t have to deal with losses that can significantly affect the success of your company and cause potential investors to go elsewhere.

If you’re starting a private equity, venture capital or other investment business, its success and reputation will be dependent on one or more “key” people to make and manage investments. That’s why it’s wise to include a key man (KM) clause in the contracts of your executives and others who are key to your business. This clause prohibits the business or any fund manager from making an investment of the designated key person(s) if they won’t be around or able to devote sufficient time to the investment. This could occur not just through resignation, termination or death. A KM clause might need to be invoked if a person takes a leave of absence or simply no longer has the necessary time to devote to their responsibilities. The key people named in this clause don’t necessarily have to be partners or other executives with the company. However, they are people whose experience, skills and knowledge in sales, product development and other areas are crucial to the business’s success. A key man clause helps the business and its clients Having a KM clause can help reassure potential investors that their money will by the people in whom they’re placing their trust. A KM clause also protects the company if one of their primary decision-makers leaves or cannot devote enough time to the business. Including the clause is just the first step. You need to detail what the business will do if a key person dies, leaves the company or is otherwise unable to fulfill their responsibilities, such as hiring someone new or training someone to take over. A timeline for this transition needs to be included in the replacement plan. You may also want to invest in key man insurance. This can compensate the company if you suffer losses because a key individual is no longer there. However, it’s much better to have a contractual clause and replacement plan in place so that you don’t have to deal with losses that can significantly affect the success of your company and cause potential investors to go elsewhere.

Sometimes, people rent spaces with the goal of making money off of doing so. They may feel that they can sublet parts of the space to bring in an income, saving them money on their rent. For example, a renter who leases a three-bedroom property for $1,000 may decide to sublet two of the rooms for $550 each. They’ll essentially make money living in the home by subletting the space and remaining in the third bedroom. This kind of setup can work well for some people, but it’s not always legal or agreeable to the landlord. If a tenant violates their lease, there is a possibility that the landlord may evict them and anyone else who is on the property. Can tenants legally sublet a property in California? Tenants cannot legally sublet a property in California if the lease prohibits it. However, if the lease prohibits assignment and not subletting, then subletting is legal. Putting it more simply, if a lease does not specifically prohibit subletting, then the tenant usually can sublet legally. Tenants who want to sublet a space should review their leases to determine if it has been prohibited before renting out the space. Landlords have ultimate control over who lives in the rental if it has been prohibited, but there are some exceptions. For example, if the landlord didn’t expressly prohibit subletting, then subletting should be allowed. Additionally, certain cities have provisions that allow some kinds of subletting to occur to make rentals more affordable. For instance, in San Francisco, it’s possible to have roommates legally added or replaced to make living within the city more affordable for everyone. Landlords normally won’t deny a subtenant without good reason or unless they’ve already refused subletting and are backed by state law. They might refuse a subtenant who has poor credit, is a danger to others, doesn’t provide enough information or provides false information to them. If a tenant wants to sublet, they should talk to their landlord first to verify that doing so is their right. If the landlord is agreeable with the sublet and the subtenant, then this will help prevent any future problems with the agreement.

Sometimes, people rent spaces with the goal of making money off of doing so. They may feel that they can sublet parts of the space to bring in an income, saving them money on their rent. For example, a renter who leases a three-bedroom property for $1,000 may decide to sublet two of the rooms for $550 each. They’ll essentially make money living in the home by subletting the space and remaining in the third bedroom. This kind of setup can work well for some people, but it’s not always legal or agreeable to the landlord. If a tenant violates their lease, there is a possibility that the landlord may evict them and anyone else who is on the property. Can tenants legally sublet a property in California? Tenants cannot legally sublet a property in California if the lease prohibits it. However, if the lease prohibits assignment and not subletting, then subletting is legal. Putting it more simply, if a lease does not specifically prohibit subletting, then the tenant usually can sublet legally. Tenants who want to sublet a space should review their leases to determine if it has been prohibited before renting out the space. Landlords have ultimate control over who lives in the rental if it has been prohibited, but there are some exceptions. For example, if the landlord didn’t expressly prohibit subletting, then subletting should be allowed. Additionally, certain cities have provisions that allow some kinds of subletting to occur to make rentals more affordable. For instance, in San Francisco, it’s possible to have roommates legally added or replaced to make living within the city more affordable for everyone. Landlords normally won’t deny a subtenant without good reason or unless they’ve already refused subletting and are backed by state law. They might refuse a subtenant who has poor credit, is a danger to others, doesn’t provide enough information or provides false information to them. If a tenant wants to sublet, they should talk to their landlord first to verify that doing so is their right. If the landlord is agreeable with the sublet and the subtenant, then this will help prevent any future problems with the agreement.

As a commercial landlord here in Los Angeles, you will likely have to deal with the issue of subleasing at some point. Unless you unilaterally forbid subleasing specifically in your leasing contract for your commercial tenants, it’s quite possible that the current economic instability could give rise to requests for subleasing. How you respond to such requests matters a great deal. Since you don’t want to wind up as a defendant in a civil lawsuit, the following guidelines can be helpful in those circumstances. What are the tenant’s rights in the matter? As stated, unless specifically prohibited by the leasing contract, your tenant does have a right to sublease the property. As the property owner, you retain the right to restrict the type of business that the potential subtenant proposes to open. However, there is a caveat. A landlord’s consent may not be “unreasonably withheld.” While that clause is open to liberal interpretation, it is always best to err on the side of caution and seek a legal opinion whenever you are in doubt about your position. The tenant remains liable When a tenant takes on a subtenant, the original tenant remains liable for all of the financial burden to the property owner. They remain responsible for collecting the subtenant’s share of the rent because they have the role of surety for the original financial obligations. If the subtenant moves out in the middle of the night and skips out on their portion of the rent, that is not the property owner’s responsibility to pursue payment. The tenant absorbs the entire responsibility for paying the full rent according to the terms of their lease. Is it advantageous to allow subleasing? While circumstances do indeed matter, e.g., the type of business the sublessee plans to operate, from an owner’s perspective, a sublease tenant can indeed be a positive thing. In an uncertain economy where your original tenant may be struggling to make rent each month, a subtenant’s contributions can make the difference between shutting down and abdicating the tenant’s responsibility to pay rent and continuing to operate their business.