Owning a Busy U.S. Subsidiary Doesn’t Make a Foreign Parent Company Suable in California

Horst Legal CounselAppellate Law, Business Litigation

If your company has a foreign parent, or you’re a foreign manufacturer who sells into the United States through an American subsidiary, you’ve probably assumed that the subsidiary’s heavy California business pulls the parent into California courts too. It feels obvious. But the California Court of Appeal just confirmed it doesn’t work that way, and the ruling gives cross-border companies …

An Employee Can’t Hide a Harassment Claim to Escape Your Arbitration Agreement

Horst Legal CounselAppellate Law, Arbitration, Employment Litigation

If your company relies on an employment arbitration agreement, you already know California keeps handing employees new ways out of one. One of the newest is a 2021 federal law that lets a worker alleging sexual harassment void the agreement and head to court. That law is real, and it has teeth. But a California Court of Appeal just drew …

Your Insurer Can Rescind Your Policy Over a Question It Never Asked

Horst Legal CounselLegal Updates

Imagine winning more than $21 million from your own insurance carrier at trial, punitive damages included, and then watching an appeals court erase every dollar of it. That’s what just happened to a California business in an aviation coverage fight. The reason should get the attention of anyone who has ever signed an insurance application. The carrier never asked the …

When a Pricing Algorithm Becomes a Price-Fixing Problem

Horst Legal CounselUncategorized

If your company sets prices with help from a third-party algorithm, one that quietly runs on data pooled from your competitors, the setup can feel like nothing more than smart operations. But California’s First District Court of Appeal just looked at an arrangement like that and gave it a different name. The name was price-fixing. The decision is VHS Liquidating …

What Your Audience Thinks You Meant Isn’t the Test for Defamation

Horst Legal CounselAppellate Law, Business Litigation

If your business publishes anything to the public, a documentary, an article, a review, a marketing campaign, a social post, you already know the risk that someone will read an accusation into it that you never made. When that happens, the plaintiff usually points to the reaction. Look at the comments. Look at what people assumed. A new California decision …

In California, You Can’t Amend Your Way Out of a Defective Debt Collection Lawsuit

Horst Legal CounselBusiness Litigation

If your business buys, sells, or collects charged-off consumer debt in California, there’s a habit worth breaking. When a collection complaint goes out with the wrong paperwork attached, the instinct is to amend it, swap in the right documents, and move on. But a new decision from the Court of Appeal says that instinct won’t protect you. The defect is …