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AdobeStock_185592300-300x200Business owners have been confronted with a host of costly legal issues as a result of the COVID-19 pandemic. For those with employees, the risk of COVID lawsuits has been a serious concern from the earliest days of the pandemic. Most employers assume that any COVID lawsuits will be covered by their liability insurance. Unfortunately, this has not always been the case.

Workers Comp Lawsuits V. Personal Injury Lawsuits

First, it is important for employers to understand the difference between workers’ compensation coverage and liability coverage. Workers’ compensation coverage pays for any injury that employees sustain in the scope and course of their employment. The employee does not have to prove negligence – so long as the injury occurred on the job, it will be covered. If an employee believes they can prove that the employer was negligent, they can file a personal injury lawsuit against their employer. These lawsuits are not covered by workers’ compensation coverage. An employer must maintain a separate general liability policy to cover claims of this nature.

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AdobeStock_229466821-300x200For over two years, landlords throughout California have shouldered the financial burdens of eviction moratoria. Federal, state and local laws have limited the circumstances, manner, and time in which a landlord could remove a tenant delinquent on rent or other obligations under the lease. While some would argue these measures were a necessary health precaution during the worst of the pandemic, they shifted the financial burden of missed rental payments onto landlords in most respects. Now, landlords are finally experiencing some relief as eviction moratorium laws expire. Learn more about commercial landlord rights in California under current eviction regulations.

How California Has Handled Commercial Tenant Evictions

Governor Newsom’s latest executive order extended eviction moratoriums on commercial landlords through September 30, 2021. Since that date has lapsed, commercial tenants are no longer protected under the expired law and must rely on state and local regulations still in effect. In sum, commercial landlords may start eviction proceedings against tenants in the counties where no extension has been provided. In some counties, local ordinances have extended eviction moratoriums and protections. Los Angeles County, for example, has created a two-phase tenant protection resolution. Different eviction rules will apply as the procedures are phased in throughout 2022. In Santa Clara County, commercial tenants must now be caught up on at least fifty percent of their arrears, or they could be subject to eviction. Tenants have until August 19, 2022, to be fully paid up on their arrears. Each county has its own rules, so be sure to consult with an attorney about your specific situation.

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AdobeStock_101676859-300x200Corporations are subject to many fiduciary rules that govern their operations. Most business persons are familiar with the prohibition on interested transactions and placing one’s own financial interests ahead of the company’s. Yet the application of this rule varies widely from state to state. The Delaware Supreme Court has recently issued a ruling that will apply to the many businesses which fall under Delaware’s state laws of corporate governance. Learn more about the standard of review for interested transactions between a controlling shareholder and their subsidiary company:

In re MFW

The litigation started with a dispute between the shareholders of M&F Worldwide (MFW). A merger was proposed between the controlling stockholder and a subsidiary company. Minority shareholders objected to the merger and brought suit to stop it. Prior case law had subjected such transactions to the stringent standard of “entire fairness.” Yet, in this case, where there were two important procedural safeguards protecting the minority interest, the Court of Chancery held that the more lenient “business judgment” standard could be applied. The ruling was appealed to the Delaware Supreme Court. Because the Supreme Court affirmed the ruling, it has created a new legal standard under Delaware law.

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AdobeStock_497874499-300x169Non-fungible tokens (NFTs) are quickly becoming one of the most popular digital assets online. An NFT is typically a unique piece of digital artwork that belongs exclusively to a single owner, with a blockchain-based digital ledger being used to record ownership. The NFT market surpassed $40 billion in 2021 and continues to grow in 2022. Unfortunately, as with any new technology, there are scammers who try to take advantage of this emerging market. If you are not certain about the legitimacy of a project, you can protect yourself and your business by getting legal advice about any digital asset you’re seeking to purchase.  Below are some examples of common NFT scams common in 2022.

1. Fake Websites and Social Media Accounts

Some scammers are able to replicate the website or social media channel of a legitimate NFT business. Often, these replicas are incredibly convincing, so it is important to use common sense security precautions before sending your crypto to buy an NFT or providing a website with any payment information. Check the website URL and verify it on the NFT marketplace. Confirm that social media channels are verified or are recognized on the company’s legitimate website. Look for security protection through antivirus software and other security protections on your network.

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AdobeStock_268338488-300x191California business owners know that social media marketing is the way to reach today’s consumers. Many businesses have sought to and built successful relationships with social media influencers for effective content creation. However, there are legal issues that can arise in such business relationships. The Los Angeles business lawyers at Structure Law Group can help you prevent problems in the following areas:

Written Contracts

Some influencers have pre-printed contracts that they use as a standard for all transactions while others expect the business owner to take the lead in drafting contract terms. In either event, it is imperative that business owners carefully consider all the legal implications of a commission/commissioned work or contractual relationship of this type. Many contractual relationship problems can be prevented with unambiguous terms written into an enforceable legal contract. Here is just a small list of the terms that should be considered when entering into this type of contractual relationship:

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AdobeStock_476679934-300x200NFT’s are a popular new digital asset. Here in Silicon Valley, tech-savvy business owners want to be at the forefront of this cutting-edge technology. Like an asset, however, it is important to understand the product before investing in it or pouring resources into it for technical development of some new business venture. Poor investments can leave business owners to answer to disgruntled shareholders, investors, employees, customers, and even government regulators, including lawsuits, class action suits, and regulatory or administrative investigations and action. Learn more about NFT’S – and what your business needs to do to invest in them safely.

What Are NFT’s?

NFT stands for “non-fungible token.” An NFT is a unique piece of digital artwork that is sold online. As with cryptocurrency, NFT ownership is recorded in a digital ledger on the blockchain of some type. NFT’s can be resold. Because of this, an owner can capture appreciation by reselling the NFT’s. NFT’s can also be used for secondary transactions and capturing royalty related to a piece of art or subscription.

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AdobeStock_183500602-300x200Business owners in Silicon Valley are well acquainted with all kinds of legal contracts. It is important to know your legal rights – as well as your obligations – under any contract. Many contractors try to bully others with threats of breach of contract and costly litigation. The experienced contract lawyers at Structure Law Group are here to help your business handle all types of breach of contract issues. Here are some of the most common disputes:

A Vendor’s Breach of Contract

Most businesses must enter into vendor contracts to get the goods and services necessary for their daily operations. If these vendors breach their contractual obligations, your business could be left unable to deliver on its own contractual duties to customers. A well-drafted vendor contract can help prevent confusion or ambiguity. Our contract attorneys can also help you determine the best course of action when a vendor breaches a contract. While litigation is sometimes necessary, it is not always worth the cost of a damaged business relationship with a trusted partner. An experienced contracts lawyer will be able to give you options for handling the problem.

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AdobeStock_326855505-300x204Courts across the United States have been impacted by the COVID-19 pandemic. With court closures, modifications of hours, countless restrictions, and case backlogs, courts (and litigants) have faced unique challenges.

As courts in California and across the country still face a significant backlog of cases due to the pandemic, many courts have embraced technology and are expected to continue using video and audio platforms and holding virtual hearings, depositions, and even trials in an attempt to improve public safety.

Below, we will talk about how the COVID-19 pandemic has changed California’s Superior Courts.

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AdobeStock_148838608-300x200Costly litigation has caused many small companies to go out of business. Often, larger companies know this and try to bully a smaller company with the threat of litigation. Small business owners do not have to be overwhelmed by the threat of litigation. With an effective legal strategy, your business can implement policies and procedures that will drastically reduce the odds of litigation. Learn more about the different areas of litigation small business owners must be aware of – and how the experienced litigators at Structure Law Group can help protect your business from liability.

Employment Litigation

Employees can sue their employers for a variety of reasons. Federal and state laws protect employees from discrimination, harassment, and other prohibited activities in the workplace. Employees may also litigate contractual disputes. (This is particularly common in Silicon Valley, where employment agreements cover intellectual property, confidentiality agreements, stock options, and other complex legal issues.) Our lawyers protect employers by drafting comprehensive employment agreements. We also work to develop effective workplace policies that will reduce the chances of a lawsuit for discrimination, harassment, union-busting, or other prohibited workplace activities.

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AdobeStock_459683513-300x200Whenever a new president takes office, the business world speculates how their policies will affect corporate law and business. This speculation leads to some wild trading on the stock market, but business owners know they must take a more measured approach. The corporate lawyers at Structure Law Group are here to help you examine new Biden Administration policies and strategically plan for the effects they will have on your business.

Taxes

The Biden Administration has made no secret that its tax priorities are widely divergent from the tax policies of the Trump Administration. In general, the Biden tax policies are designed to curb the large tax breaks for large companies and wealthy individuals that were widely available under the Trump administration’s tax policies. Biden’s Build Back Better Agenda is focused on improving financial security for the middle class by easing tax burdens. U.S. Bank reports that these changes could affect taxpayers who:

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