Most business and real estate attorneys assume that the statute of limitations on an oral contract is two years, and on a written contract is 4 years. These are boilerplate assumptions that can trap a businessperson or a landlord; they do not always hold true once we delve into the specifics of a case.
We recently represented a borrower in a foreclosure action brought by the lender bank where no payments had been made on the loan for over 4 years, without any remedial or collection action initiated by the lender. The loan had been bundled, sold and assigned several times and with no lender follow up for some unknown reason. The assumption on the part of the borrower was that passing the four-year mark changed the nature of the dispute. So we took a closer look to confirm whether the statute of limitations could serve as a possible defense. We found that not to be the case. The limitations period on a promissory note is 6 years rather than 4:
Pursuant to California Commercial Code Section 3118(a),
an action to enforce an obligation of a party to pay a note payable at a definite time must be commenced within 6 years after the due date or dates stated in the note or, if a due date is accelerated, within 6 years after the accelerated due date.
This is another example of the trap waiting for both experienced and new attorneys faced with a statute of limitations issue, which can often be more complicated than realized at first glance. And this trap is contained not only in the California Code of Civil Procedure but in other statutes as well.
This loan was a leftover from the days of the Great Recession when loans were bundled, sold and assigned to unsuspecting investors without proper due diligence by the investors and rating agencies, and were serviced by loan servicers with less than diligent follow up. We find it incredible that we continue to see cases involving these types of loans 11 years after the Great Recession hit in 2008.
We are often asked by credit managers in California if there are any additional credit approval criteria to consider when a proposed customer and credit applicant is an out-of-state (“foreign”) corporation. While each case is fact-specific, there are some general factors for credit managers to consider that uniquely apply to extending open account credit terms to foreign corporations doing business in California.
The method you choose for holding title on your real estate property in California can have unexpected legal and tax consequences, especially years from now when death or disagreement brings change to the relationship between the co-owners.
Given these distant, hard-to-imagine impacts, choosing how title is vested by the co-owners is often an afterthought (or even overlooked)! But the consequences of improper vesting can be devastating. Typically, problems do not arise until many years after the recording of the grant deed that includes the improper vesting. Then, the improper vesting suddenly becomes a problem upon the attempted sale or refinancing of the property, or upon the death or dissolution of marriage of one (or more) of the owners.
When you decide that you must pursue a divorce, the best first step is to hire an attorney to represent you. Selecting an attorney is harder than most people think, though, because you want to work with a lawyer that treats you and your case effectively and respectfully. There has to be a great deal of trust between you, and a comfort level in your day-to-day working relationship, as you will be working closely with your lawyer for many months and sharing very personal information.
This may be why women make up a higher percentage of attorneys in family law practices than in other areas of the law. Given that most divorces still involve a man and a woman, the desire for many women to work with a lawyer of the same gender creates a natural demand for women attorneys in this practice area. Continue reading →
Poniatowski Leding Parikh Law Corporation announces the formation of its Family Law Practice Group. Beginning July 1, 2018 PLP Law Corp. now offers representation, counseling and advice across the full spectrum of Family Law matters, such as:
Meera T. Parikh is one of the partners at Poniatowski Leding Parikh Law Corporation. Meera specializes in business and commercial litigation, real estate litigation, and creditor’s rights in bankruptcy and receiverships. Meera graduated from the University of Houston with a degree in Cell and Molecular Biology. She then continued her education at Santa Clara University School of Law where she received her J.D. and certification in High Tech law. Meera is also a member of the US Patent Bar and was previously a patent attorney in Silicon Valley. Continue reading →
It’s usually easier to buy an existing business than to start up your own. This is because everything is already in place, including a customer base. However, there are some things to look for when you buy a fully-operational business. Follow the tips listed below to give yourself a fair chance of success at converting someone else’s business into your own. Continue reading →
Signing a commercial lease is a significant commitment for most businesses. Whether negotiating or renewing a commercial lease, it can be difficult to determine the best lease term for your business. Many companies settle for a “standard” 5-year term, which may be appropriate. But there are factors to consider that could make a shorter or longer term more advantageous for your particular business. The information in this discussion may be useful helping you arrive at an appropriate lease term. However, if you’re still not sure, the best approach might be to consult with commercial leasing attorneys to advise you. Continue reading →
Purchasing commercial real estate in the Bay Area can be a solid investment. Whether you are considering buying property in Oakland, Pleasanton, San Leandro, or anywhere in the Bay Area you will likely find a wealth of appealing options available. However, you will need to consider certain details before signing a purchase agreement. The following are some of the steps worth taking prior to buying Bay Area commercial real estate. Continue reading →
We live in a highly competitive business environment, which pits people against firms, and major corporations against small businesses. When negotiating transactions, individuals and companies must prevent unauthorized disclosure of their trade secrets and proprietary information, which is so vitally important in such a competitive business environment. One of the ways for professionals and firms to protect trade secrets and proprietary information when negotiating transactions is through a properly drafted Non-Disclosure Agreement (NDA). With an NDA, the parties to a transaction are prohibited from sharing with third parties trade secrets and proprietary information that is disclosed to them in connection with the negotiating and due diligence of a proposed transaction. Continue reading →