A recent case from the 5^th U.S. Circuit Court of Appeals breaks new ground on the question of whether a commercial general liability policy provides coverage for damages arising from a data breach caused by a third-party hacker. Landry’s Incorporated v. Insurance Company of the State of Pennsylvania, 4 F. 4^th 366 (5^th Cir. 2021). In brief, the court in Landry’s held that there was coverage for a data breach where the insured was sued by a credit card processing company for breach of contract.

Landry’s operated retail properties including restaurants, hotels and casinos ...

Feeling entitled, or deserving or just plain covetous? You have discovered that you are encroaching on your neighbor's property. In California, two inconsistent doctrines can apply to allow you to continue using your neighbor's property, if the encroaching use has been long enough.

Prescriptive easement doctrine is for those guilty of intentionally wanting to take their neighbor's land without regard to carelessness. To win a prescriptive easement claim, you must prove continuous and uninterrupted, adverse and hostile, open and notorious use over the real property of a ...

On August 17, 2021, the Los Angeles County Department of Public Health announced a mask mandate for large outdoor mega-events of more than 10,000 people. This is the first outdoor mask mandate since the County began its reopening attempt on June 15, 2021.

All attendees at those events must now wear face masks at all times, except when actively eating or drinking. Event operators are required to prominently include information about the mask mandate throughout the event and on communications to guests. The County also has a recommendation (but not a mandate) that all attendees at ...

On August 4, 2021, Democratic Senators Richard Blumenthal, Sheldon Whitehouse and Ed Markey; and Democratic Representatives Frank Pallone, Jr. and Rosa DeLauro introduced the Food Labeling Modernization Act (“FLMA”) in both houses of Congress. Versions of this bill were introduced in 2015 and 2018, but were unsuccessful.

The press release announcing the new legislation touted it as “an effort to help consumers select healthy products.” The legislation would direct the Secretary of Health and Human Services (“HHS”) to establish a single, standard ...

On Wednesday, August 11, 2021, the Los Angeles City Council approved a motion to require people to have at least one dose of the COVID-10 vaccine before being admitted to public spaces, including restaurants, entertainment venues and retail stores. 

The motion states: “the City Council instruct[s] the City Attorney to prepare and present an ordinance that would require eligible individuals to have received at least one dose of vaccination to enter indoor spaces, including but not limited to, restaurants, bars, retail establishments, fitness centers, spas and entertainment ...

While Congress has expressed bipartisan support for replenishing the depleted Restaurant Revitalization Fund (“RRF”), it has not been able to take action to do so. There are currently two bills pending to replenish the funds, and on August 7, 2021, a group of Senators attempted to add $48 billion to the RRF through a unanimous consent, which failed. The uncertain status of the RRF leaves hundreds of thousands of restaurants in limbo. This is particularly true of the approximately 3,000 priority applicants, who were approved for RRF grants and later notified that the SBA could ...

On July 29, 2021, the Small Business Administration (“SBA”) updated its guidance to address borrower and lender questions about the implementation of the Paycheck Protection Program (“PPP”).

The SBA announced that it was discontinuing use of the Loan Necessity Questionnaire (SBA Form 3509 or 3510) (the “Questionnaire”). The Questionnaire sought additional information for borrowers seeking loans of $2 million or more, including a liquidity assessment and business activity assessment.

Eighty-two organizations, including the National Restaurant ...

Keeping current on the frequent changes to COVID-19 business requirements can be very challenging. The return to indoor masking requirements on July 17, 2021, in Los Angeles County has been widely publicized. Even so, Los Angeles businesses may not be aware that the county is currently enforcing the indoor masking requirements through onsite inspections of county businesses. 

In fact, during the short period between July 17, 2021 and July 23, 2021, Los Angeles County reports that its Department of Public Health inspectors visited 1,013 restaurants, 9 bars, 222 food markets, 22 ...

On November 6, 2018, California voters passed Proposition 12. The law is set to go into effect on January 1, 2022. Among other things, the law “prohibits a business owner or operator from knowingly engaging in the sale within the state of shell eggs, liquid eggs, whole pork meat or whole veal meat, as defined, from animals housed in a cruel manner.”

The National Pork Producers Council and the American Farm Bureau Federation filed a district court action seeking declaratory and injunctive relief on the ground that California’s Proposition 12 ban on the sale of whole pork meat (no ...

Q: I know receivers were appointed in England before even the merger of courts of law and equity, but when were receivers first appointed in California?

A: It is hard to say when a receiver was first appointed in California, given records are not generally kept of superior court orders for long. However, the first reported appellate decision involving a receiver appears to be Von Schmidt et. al v. Huntington et. al., 1 Cal. 55, decided in the Court’s March 1850 term. The Supreme Court affirmed the lower court’s appointment of a receiver, in a corporate dissolution action, to ...