Articles, news & legal alerts

Read the latest news from Scali Rasmussen, including legal alerts and event listings.

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In 2023, the California and Federal courts of appeal published opinions on several cases impacting consumers and manufacturers/distributors of consumer products. Of note, the Ninth Circuit held in two cases that a consumer’s false and misleading label claims were preempted by the Food, Drug and Cosmetic Act, a victory of sorts for manufacturers. In addition, a California Court of Appeal published an opinion giving manufacturers of consumer products a potential defense to Proposition 65 claims.

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If a defendant’s anti-SLAPP motion is granted, plaintiff will be required to pay defendant’s attorney’s fees incurred in bringing the motion. Thus, the anti-SLAPP motion is an effective tool to thwart improper lawsuits challenging a party’s First Amendment rights. In 2023, the courts of appeal published numerous opinions relating to the anti-SLAPP motions in a variety of contexts.

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In 2023, the courts of appeal were faced with several issues related to Lemon Law cases including the impact of Statutory Offers to Compromise pursuant to Code of Civil Procedure section 998, the enforceability of arbitration agreements contained in deal contracts, and the impact of trade-ins on restitution. The “big issue” that the California Supreme Court will decide in 2024 or 2025 is whether a manufacturer can enforce an arbitration agreement signed by the buyer and the dealership. Several courts of appeal have published opinions on the issue, many of which are in conflict. The issue will be resolved by the California Supreme Court.

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California and Federal courts of appeal published opinions on a wide variety of employment-related cases including wage and hour, whistleblower retaliation, discrimination/ADA, class actions, PAGA claims, and workers compensation. The results are a mixed bag for employers. Of note, the United States Supreme Court was given the opportunity to rule on a crucial ADA issue: whether an ADA “tester” has standing to challenge a business’ failure to provide disability accessibility on its website even if the tester had no plans to visit the business’ premises. Unfortunately, SCOTUS “punted” by dismissing the appeal on a procedural technicality. As a result, the issue remains unresolved.

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As has been the case in the last several years, 2023 saw numerous opinions from the California and Federal courts relating to the enforcement of arbitration provisions. The opinions relate to arbitration provisions in the commercial context as well as arbitration in the employment context. Unfortunately, for those seeking to enforce arbitration agreements — particularly employers — the courts upheld virtually all trial court rulings denying motions to compel arbitration. 

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Scali Rasmussen Shareholder Jeffrey Erdman and Principal Jasmin Bhandari have been recognized as "Leaders of Influence: Minority Attorneys" and profiled in a special feature by the Los Angeles Business Journal. According to the publisher, the feature highlights "those standout minority attorneys considered to be particularly impactful on the legal scene while serving as trusted advisors in Southern California."

A win for employers

Trial court holds LWDA responsible for employer’s costs

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A trial court in Alameda County gave a win to employers: entering an order allowing Hobby Lobby Stores, Inc. to recover $125,000 in costs from the Labor and Workforce Development Agency (LWDA).

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Effective January 1, 2012, the Wage Theft Protection Act required that all employers provide each non-exempt employee with a written notice containing specified information at the time of hire. The notice must be in the language the employer normally uses to communicate employment-related information to the employees. The Act also requires that the Labor Commissioner provide employers with a template that complies with the requirements of the notice.

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The new year brings a number of payroll, accounting and benefits adjustments that employers and employees alike should keep in mind. Here are a few areas in which updates should be noted.

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