Articles Posted in Other

In an interesting case from the California Supreme Court, the court decided, in a 102 page split 4-3 decision, that an order compelling a writer to remove a post on Yelp cannot be used to compel Yelp to remove that post when the poster defaults or fails to do so.

The details of this case and its legal background are a bit beyond the scope of this post (and we did not fully review the 102-page decision), but we try to provide an overview of the facts and circumstances of this case.

Yelp and others like it are generally immune from lawsuits for third-party reviews and statements under the Decency Comminations Act (the “DCA”). Under the DCA, so long that Yelp simply acts as a passive bulletin board it is not seen as offending the rights of another, including with posts that are claimed to be defamatory. In this case, Ava Bird, a client of a law firm, allegedly posted negative reviews about the firm which it claimed were defamatory. Bird defaulted in the law firm’s suit against her, and the lower court granted the firm the main relief it sought ordering Bird to remove the posts. Included in the court’s decision was a directive to Yelp that if Bird did not remove the posts Yelp must. In issuing that order, the court recognized the limitations of the DCA but held that because Yelp was not found culpable or liable for any wrongdoing, his decision did not run afoul of the DCA. All the court required was that Yelp remove the posts if Bird did not, but nothing more. Yelp challenged the decision and sought its vacatur. Yelp argued that it was not a party to the lawsuit yet was required to do something, thus deprived of its due process in the lawsuit, and also claimed that the DCA shielded it from having to do anything. The court rejected Yelp’s arguments and stuck to its original decision. The appellate court affirmed, ruling that Yelp was not a publisher of these posts, had no right to be heard, and was not protected, in this setting, by the DCA. Yelp appealed to the California Supreme Court, where more than a dozen amicus briefs were filed in support of Yelp.

While we don’t have a criminal practice, a decision out of Louisiana’s high court highlights the importance of demanding counsel — clearly.

From the Washington Post:

“[W]hen a suspect in an interrogation told detectives to “just give me a lawyer dog,” the Louisiana Supreme Court ruled that the suspect was, in fact, asking for a “lawyer dog,” and not invoking his constitutional right to counsel.”

The ABA Magazine has a fascinating write-up about arson and fire science that has been called into question by subsequent research. And while it is freeing long-convicted people from jail, some fire investigators are reluctant to move past the outdated science.

For more information about Han Tak Lee’s appeal that freed him from prison after 25 years for allegedly setting a fire that killed his daughter, look here.

This post was authored by Trippe Fried, Esq., and appeared at http://www.sourcedgeneralcounsel.com/news/2015/8/16/its-like-the-plague-why-entrepreneurs-should-avoid-legalzoom.

Though LegalZoom purportedly offers a low-cost alternative for routine legal matters, in reality it sells only one thing: A false sense of security. And let’s dispense at the outset with the myth that it is self-serving for a business lawyer to be critical of an incorporation service. There is usually more to be made in attorneys’ fees helping clients clean up the messes LegalZoom (or Clerky, or the like) leave behind than handling routine incorporations. But it still needs to be stressed: LegalZoom’s “why use a lawyer when you don’t need one” logic is disingenuous, misleading, and potentially very costly.

You don’t need a lawyer, accountant, or service to incorporate. Anyone can do it by visiting the official government website of the jurisdiction of formation. Some states like New York and New Jersey offer self-explanatory online filing; others like Delaware and California provide easy to complete forms that you submit by mail. Follow the instructions and . . . Voila! . . . you’re business is incorporated.

A buyer entered into to a contract to purchase a penthouse co-op apartment for $27.5 million. Part of the unit being purchased included a terrace, which was to be for the buyer’s exclusive use. Between contract and closing, this exclusive use was questioned as the board intended to convert the roof to a common area and provide access to the roof through the penthouse terrace. Obviously, the buyer would not agree to that invasion of privacy necessary for roof access. The board provided conflicting authorizations and plan drawings, and had to be compelled to provide the co-op plans. The buyer informed the seller that it was canceling the contract and demanded the return of its down payment. The board then withdrew its demand for terrace access but refused to provide an unqualified statement that the roof was not common area, that no access would be provided for the terrace or that the board would not in the future raise this issue. Nonetheless, the seller refused to return the downpayment, claiming that the buyer was getting the co-op as described in the contract. The buyer disagreed and refused to close. Litigation followed over the $2.7 million downpayment. The trial court decided that the buyer’s failure to appear at the closing and see what plan was delivered was a breach, and refused to direct the return of the downpayment.

The appellate court disagreed, and found that the seller’s inability to provide an unqualified promise by the board not to convert the roof to a common area and allow the buyer private and exclusive use of the terrace supported a finding that the seller was unable to deliver the apartment as promised. The Court seemed unimpressed by the board’s qualified promise not to interfere, given the board’s prior conduct, and the buyer’s need to interact with the board on some regular basis. The appellate court was concerned that a fight would erupt in the future and the Buyer should not be compelled to buy a “problem” property. All of this, supported the buyer’s right to rescind the purchase contract.

Pastor v. DeGaetano, First Dept. 2015

Landlord and Tenant entered into a long-term commercial lease. After the Tenant vacated, Landlord terminated the lease, and sued to recover legal possession of the space and for rents that were then past due and owing. Landlord won that lawsuit. Thereafter, the Landlord commenced a second action seeking the amount that the Landlord would have collected assuming the completion of the full lease term.

The Court of Appeals confirmed the Landlord’s attempt to recover that rent, but held that the Landlord could not recover more than the value of the lease. Because the lease allowed the Landlord to hold possession of the space and accelerate and collect the not discounted rent that would otherwise become due over the term of the lease, the Court determined that a hearing had to be held to decide if that amount, given that the Landlord had relet the space, was disproportionate to the Landlord’s actual loss, even though the Landlord had possession but no duty to mitigate.

172 Van Duzer Realty Corp v. Globe Alumni Student Assistance Association, Inc.

Contact Information