IRVINE, CALIFORNIA — Following a seven-week jury trial in the Nevada District Court, Enterprise Counsel Group (“ECG”) Partner Anjuli Woods successfully defended her client in the case entitled LLV Holdco, LLC v. Atalon Management Group LLC, et al. against a $15 million claim.

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By popular demand, the following breaks down more precisely how Assembly Bill 1482 (aka, the “Tenant Protection Act of 2019”) is anticipated to impact owners of California residential rental property. 1

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California’s rent cap bill, AB1482, now makes rent control the law of the land in California. The bill was passed by the California Senate on September 11 and is now headed to Governor Gavin Newsom’s desk.  He has publicly stated he intends to sign it.

California is the third state to impose statewide rent controls. Oregon passed a measure limiting annual increases to 7% plus inflation in March. New York state enacted rent controls in June.

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Lawsuits are often filed claiming company managers, officers, board members or those “in control” are stealing from the businesses entrusted to their care, or are running those businesses for their individual benefits to the detriment of minority shareholders or other equity owners (e.g., LLC members).  Many times, these lawsuits are warranted.  Equally often, they amount to “sour grapes” by those who got outvoted or didn’t get their way.  Regardless, a large number of these cases are dismissed without any judicial determination of right or wrong.  Why?  Because the parties bringing the lawsuits forgot to ask the simple question, “Who ‘owns’ the claim?”

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Depending on the circumstances, the answer to this question could be worth millions of dollars.  It could also spell the difference between success and disaster: e.g., the possible collapse of the modern day on demand cyber economy (Uber, Lyft, grocery delivery, etc.)  Thus, every day scores of lawsuits are fought over this very point.  For many, the business of filing and prosecuting such lawsuits is “big business.”

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