Insights
Firm News

5 Calif. Laws Experts Say Could Use a Facelift

October 23, 2013 Media Coverage

Law360
10/23/2013
"5 Calif. Laws Experts Say Could Use a Facelift" 

Farella Braun + Martel's Philip Peters commented on how the California Limited Liability Company Act could affect businesses with operating agreements in place before the act passes.

“If you and I cut a deal and write it down on paper, why should the new LLC act that passes without our knowledge change our deal?” he said. “We already made the deal.”

Peters mentioned that some of the law’s provisions could lead to conflicts that end up in court, such as changes to rules governing whether LLCs are managed by a manager or members. Also, new statutory rules may create unexpected results: For example, under the new law, members who transfer their economic interests to another party but retain their voting rights could be expelled from the LLC. These changes could fuel fights between LLC members over whether the existing written deal applies or the new law controls, he said.

“Issues will arise with a lot of bucks on the line,” he said. “By applying to all LLCs, the law is an inviting target for any members with pre-2014 operating agreements who are upended by the new act.”

The full article is available on Law360 (a subscription based service.)

Firm Highlights

Publication

Renewable Energy Roundtable Update in the Wake of COVID-19

The COVID-19 pandemic has resulted in widespread disruption of business and industry across California, including the state’s vibrant renewable energy and energy storage industry. Farella Braun + Martel attorneys are tracking developments and advising...

Read More
News

Farella Represents the Bundschu Company in its Acquisition of Valley of the Moon Winery

SAN FRANCISCO, March 5, 2020: Farella Braun + Martel represented the Bundschu Company in its acquisition of the 60 acre winery and vineyard property at the historic Rancho Agua Caliente in Glen Ellen, California...

Read More
Publication

Hospitality Companies and Their Lenders: Preparing for Difficult Conversations

In a sudden reversal of generally expansionary trends, the hospitality business has been among the most immediate and badly hit economic sectors as a result of the COVID-19 pandemic, and the resulting stay-at-home and...

Read More
Publication

7 Ways to Check If Coronavirus Triggers ‘Force Majeure’ Clauses in Your Wine Business Contracts

Never in the experience of most of us has an event so thoroughly interrupted business as usual as the coronavirus pandemic. The wine business runs on contracts: grape purchase agreements, event hosting contracts, vineyard...

Read More
News

Farella Braun + Martel Attorneys, Practices Recognized by Chambers USA 2020

SAN FRANCISCO, April 23, 2020: Farella Braun + Martel announces that Chambers USA has recognized 12 lawyers and five practice areas in the legal directory’s 2020 edition. Individual Rankings: Tyler Gerking – Insurance: Policyholders...

Read More
Publication

Engineering, Procurement and Construction Agreements for Utility-Scale Battery Projects

The negotiation of an engineering, procurement and construction (EPC) agreement for a battery energy storage systems (BESS) project typically surfaces many of the same contractual risk allocation issues that one encounters in the negotiation...

Read More
Publication

Paycheck Protection Program Eligibility for Private Equity and Venture Capital-Backed Entities

Congress’ recently enacted Coronavirus Aid, Relief and Economic Security Act (CARES Act) created a new small business lending program to provide a direct incentive for small businesses to keep their workers on their payroll...

Read More
News

Dan Cohn Named to American Friends of Tel Aviv University Board of Directors

SAN FRANCISCO, May 26, 2020: Farella Braun + Martel Partner Daniel E. Cohn was elected to the American Friends of Tel Aviv University (AFTAU) Board of Directors. AFTAU is a nonprofit organization that raises...

Read More
Publication

Questions Wineries Need to Answer Before Talking With Lenders About Coronavirus-Caused Financial Woes

The coronavirus pandemic and public health efforts to combat it will impact different wine businesses in different ways. Those that depend upon on-premise and direct-to-consumer (DTC) sales — such as restaurant, hospitality, and tasting room...

Read More
Publication

CARES Act Paycheck Protection Program Summary (Updated)

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Paycheck Protection Program (PPP) aims to provide qualifying small businesses, nonprofit organizations, veterans organizations, tribal businesses, sole proprietors, and independent contractors forgivable loans of...

Read More