The so-called “mansion tax” approved by Los Angeles voters in 2022 and effective April 1, 2023 (Measure ULA) is a misnomer. It establishes a new 4% documentary transfer tax on the sale of any real property priced or valued from $5 million up to $10 million and a 5.5% tax on real property sales priced or valued at $10 million or greater. This is in addition to the current base transfer tax. Measure ULA applies to more than just large homes. It applies to apartment buildings, raw land and commercial and industrial real estate. Anytime a sale price for real property exceeds $5 million in Los ...

As interest rates rise, borrowers may find themselves in default, facing lenders who overreach by seeking to recover default interest in addition to regular interest on the principal of the loan. Borrowers may have a weapon in their arsenal to oppose unscrupulous lenders.

In Honchariw v. FJM Private Mortgage Fund, LLC, 83 Cal.App. 5th 893 (2022), a borrower alleged that a default interest rate of 9.99% per annum on the then outstanding principal was illegal. The trial court affirmed an arbitration decision rejecting the borrower’s position. The Court of Appeal ...

Friends of Camden, Inc. v. Brandt, 81 Cal. App. 5th 1054 (August 2, 2022) illustrates the trickiness of the law governing dissolutions for limited liability companies and buyout election rights for those opposing dissolution. In Friends of Camden, the plaintiff manager and 1% owner of the LLC (Camden) filed an action for involuntary dissolution under Corporations Code section 17707.03. Certain defendants who were owners of 50% of the LLC moved immediately to exercise their rights to buyout Camden’s 1% ownership interest under Section 17707.03(c)(1) to avoid the dissolution ...

Feeling entitled, or deserving or just plain covetous? You have discovered that you are encroaching on your neighbor's property. In California, two inconsistent doctrines can apply to allow you to continue using your neighbor's property, if the encroaching use has been long enough.

Prescriptive easement doctrine is for those guilty of intentionally wanting to take their neighbor's land without regard to carelessness. To win a prescriptive easement claim, you must prove continuous and uninterrupted, adverse and hostile, open and notorious use over the real property of a ...

Until a recent appellate ruling, it appeared that, under California law, if a debtor made a transfer without receiving “reasonably equivalent value” in exchange, that transfer, by itself, could be — but need not be — a basis for finding there was “actual fraud” rendering the transfer voidable under the California Uniform Voidable Transfer Act (“UVTA”).

Not anymore. In Universal Home Improvement, Inc., et al. v. Robertson, et al., 51 Cal. App. 5th 116 (June 24, 2020, modified July 21, 2020), the 1st District Court of Appeal held that, “[t]he ‘badges of fraud’ do ...

Partner, Ervin Cohen & Jessup

The financial elder abuse and fraud cases playing out in court right now surrounding Marvel Comics icon Stan Lee trace back to state laws enacted many years ago like the California Elder Abuse Act, designed to protect those over 65. However, many lawyers remain unfamiliar with them.

Here are 11 pointers on the California Elder Abuse Act for practitioners who may encounter financial elder abuse — the most common and fastest growing form of elder abuse.

First: The act contains a unilateral attorney’s fee and costs provision. If an abused elder prevails ...

You’ve been approached by a wireless carrier to lease space on your building or property—now what? While rent is an important consideration, you should keep in mind other ways to generate revenue in the future, including limiting the carrier’s right to perform equipment modifications without your consent and requesting revenue sharing for future subtenants.

In addition to the rent, there are non-monetary terms to consider, such as Right of First Refusal provisions that limit your ability to sell the rental stream to a buyout company or automatic renewal terms that extend the ...

An angry client calls: "I have been sued." But this time, there is absolutely no basis in law or fact for the lawsuit.

The client asks: "Can I get the case dismissed and recover my attorney's fees against the lawyer and opposing party who sued me?"

I might answer that being sued is like having a wedding. You pay a lot and get involved in a very protracted, expensive affair, which may not end well even under the best of circumstances. On top of the pain and rigors of litigation, do you really want to pursue an action for malicious prosecution against your adversary after prevailing to try to win back ...