A commercial tenant is typically obligated by its lease to maintain and repair the leased property.  If a tenant breaches those obligations, the landlord may notify the tenant of a default in the terms of the lease and, if the tenant does not cure the default, terminate the lease. However, if the landlord does not… read more

Under California commercial landlord-tenant law, the landlord’s remedy for the tenant’s nonpayment of rent is to first serve a notice to pay or quit and then, if the tenant does not pay, file suit to recover possession of the premises.  In Culver Center Partners East # 1, L.P. v. Baja Fresh Westlake Village, Inc., the… read more

Corporate shares with no current market value may not be ordered transferred to satisfy a money judgment.  In Ho v. Hseih, the California Court of Appeal reversed a trial court order directing a judgment debtor (a person who owes money on a judgment) to transfer her shares to the judgment creditor.  The judgment debtor held… read more

A corporate shareholder’s creditors may not “pierce the corporate veil” to reach the corporation’s assets to satisfy claims against the shareholder.  Under very limited circumstances, a court will disregard the corporate form so that a shareholder’s personal assets are subject to claims against the corporation. However, in Postal Instant Press v. Kaswa Corp., the California… read more

In a recent decision, the California Court of Appeal held that a contractor is responsible for unpaid wages owed to employees of an unlicensed subcontractor.  In Sanders Construction Company v. Cerda, a general contractor entered into a subcontract with an unlicensed drywall contractor.  When the unlicensed drywaller failed to pay his employees, the employees filed… read more