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Business Transactions

California Business Transactions Litigation

Ninth Circuit

Panelli v. Target Corporation — Ninth Circuit revives California consumer class action over allegedly impossible 800-thread-count cotton sheets, holding a literally false claim can deceive even when its falsity is verifiable

/ April 17, 2026

The Ninth Circuit reverses dismissal of a California consumer class action against Target over allegedly impossible 800-thread-count cotton sheets, holding that the literally false advertising framework applies when a label is unambiguous and that a physically impossible claim can still deceive a re

California Business Transactions Litigation

Ninth Circuit

Brown v. The Brita Products Company — Ninth Circuit affirms dismissal of California consumer suit, holding no reasonable consumer expects a $15 water filter to remove every contaminant

/ April 16, 2026

The Ninth Circuit affirms dismissal of a California consumer class action against Brita, holding that no reasonable consumer would expect a low-cost water filter to remove every common contaminant when the packaging only claims to ‘reduce’ specific listed contaminants and directs buyers

California Business Transactions Litigation

4th District Court of Appeal, Division Three

NNN Capital Fund I, LLC v. Mikles — Standing of Purported LLC Representatives Is a Jurisdictional Issue That May Be Raised at Any Time, Including After Arbitration

/ April 16, 2026

Fourth District vacates judgment confirming arbitration award and remands for the trial court to determine whether the purported liquidating trustees who brought the action on behalf of an LLC had standing under the company’s operating agreement, holding that jurisdictional standing may be cha

California Business Transactions Litigation

4th District Court of Appeal, Division One

Gonzalez v. Community Mortuary — Impracticability of Performance Is an Equitable Defense Tried to the Court, Not the Jury

/ April 8, 2026

Fourth District holds that impracticability of performance is an equitable defense that must be tried to the court rather than the jury and reverses a defense verdict in a breach of contract case arising from a Texas mortuary’s body mix-up that resulted in the wrong body being buried in San Di

California Business Transactions Litigation

4th District Court of Appeal

Clarke v. Yu — Statute of frauds applies to oral and implied joint venture agreements that cannot be performed within one year

/ March 16, 2026

Fourth District holds that California’s one-year statute of frauds applies to oral and implied joint venture agreements and affirms summary judgment for Scripps scientists in a biotech startup dispute with a venture capitalist.

California Business Transactions Litigation

2nd District Court of Appeal, Division One

Jogani v. Jogani — $6.85 Billion Verdict in Brothers’ Real-Estate Partnership Suit Conditionally Affirmed; Lost-Profits Expert Testimony Excluded

/ February 24, 2026

Second District conditionally affirms a $6.85 billion verdict in a five-month trial over the Jogani brothers’ real-estate partnership, but orders a remittitur because Shashi Jogani’s damages expert testified to an undisclosed lost-profits opinion exceeding $1.9 billion.

California Business Transactions Litigation

2nd District Court of Appeal, Division Eight

Diaz v. Thor Motor Coach — Out-of-State Forum-Selection Clause in RV Warranty Unenforceable Against Song-Beverly Claim Even With Stipulation Preserving California Law

/ February 13, 2026

Second District reverses an order staying a Song-Beverly action against Thor Motor Coach, holding the warranty’s Indiana forum-selection clause is unenforceable even when accompanied by a stipulation that California law would govern.

California Business Transactions Litigation

4th District Court of Appeal, Division Three

Grant v. Chapman University — University Statements About On-Campus Education Are Not Specific Enough to Form an Implied Promise of In-Person Instruction

/ February 5, 2026

Fourth District affirms summary judgment for Chapman University in a COVID-19 tuition-refund case, holding that the university’s general descriptions of campus facilities and ‘face-to-face’ contact were not specific enough to form an enforceable implied promise of in-person educati

California Business Transactions Litigation

4th District Court of Appeal, Division One

Higginson v. Kia Motors America — Trial Court Should Have Imposed Terminating Sanctions for Kia’s False Discovery Responses About Engine-Defect Records

/ February 3, 2026

Fourth District reverses a defense judgment in a Song-Beverly action against Kia, holding the trial court abused its discretion by accepting Kia’s false verified discovery responses about engine-defect records and failing to impose terminating sanctions when the falsity was revealed.

California Business Transactions Litigation

1st District Court of Appeal, Division Five

Navellier v. Putnam — Bankruptcy Stay Did Not Block Appeal Brought by Debtor; Defendants’ Trial Verdict and Fee Award Affirmed

/ February 2, 2026

First District holds the automatic bankruptcy stay does not bar appellate proceedings the debtor itself brought, and affirms a defense verdict and attorney-fee award in a $1.5 million loan-related contract and fraud dispute.

California Business Transactions Litigation

2nd District Court of Appeal, Division Eight

Barrios v. Chraghchian — Defeating an Early Bond Motion in a Derivative Suit Does Not Insulate the Plaintiff From Costs After Loss on the Merits

/ January 20, 2026

Second District holds that a plaintiff who defeats an early bond motion under Corporations Code section 17709.02 is still subject to the ordinary cost-shifting rules if he ultimately loses the derivative suit on the merits.

California Business Transactions Litigation

U.S. District Court — Southern District of California

Vickery v. SD Bullion — S.D. Cal. Trims Consumer Class Action Over ‘Lowest Price. Period.’ Gold-Coin Advertising

/ January 20, 2026

In a putative class action alleging that SD Bullion’s ‘The Lowest Price. Period.’ advertising for precious-metal coins was false because competitors charged less, the court trimmed several theories at the motion-to-dismiss stage but allowed the consumer’s core false-advertisi

California Business Transactions Litigation

U.S. District Court — Central District of California

North Investment v. Berkower — C.D. Cal. Tosses Fraud and Aiding-and-Abetting Claims Against Accounting Firm Over False Schedule K-1s

/ January 20, 2026

Central District of California dismisses fraud, aiding-and-abetting, and UCL claims against an accounting firm whose Schedule K-1s wrongly indicated investors had received distributions, holding investors did not plausibly allege the firm knew the distributions never occurred when it prepared the fo

California Business Transactions Litigation

2nd District Court of Appeal, Division Four

Towns v. Hyundai Motor America — Only the Buyer Has Song-Beverly Standing, but Insurance Payouts Don’t Reduce Restitution

/ January 16, 2026

Second District holds that under California’s Song-Beverly Consumer Warranty Act, only the actual buyer has standing to sue for restitution, but a manufacturer cannot reduce its restitution by the amount of a third-party insurance payout the buyer received after the car was wrecked.

California Business Transactions Litigation

U.S. District Court — Central District of California

Anofienem v. WeWork — C.D. Cal. Tosses Most of Pro-Se Membership Suit and Permanently Strikes E-SIGN and Unruh Claims

/ January 15, 2026

Central District of California denies remand of a pro se WeWork dispute, dismisses the contract, conversion, and emotional-distress claims with leave to amend, and dismisses the federal E-SIGN Act and Unruh Act claims permanently for lack of any private right of action and missing intent allegations

California Business Transactions Litigation

U.S. District Court — Southern District of California

Peachtree Orthopaedic Clinic v. Deep Seas — S.D. Cal. Trims Cybersecurity Vendor’s Counterclaim, Dismissing Fraud-in-Inducement Theory Under Economic Loss Rule

/ January 13, 2026

In a breach-of-contract dispute over a $160,000 fee demand following a cybersecurity vendor’s alleged failure to detect a 2023 data breach at a Georgia orthopedic clinic, the court dismissed the vendor’s counterclaim theories for fraud in the inducement, breach of the implied covenant of

California Business Transactions Litigation

U.S. District Court — Northern District of California

Ved v. Global Fitness Ventures — N.D. Cal. dismisses derivative suit for lack of diversity, holding LP is real party in interest

/ January 13, 2026

Judge Gilliam dismisses Divyang Ved’s derivative suit on behalf of Spain Fitness Ventures, LP for lack of subject matter jurisdiction, holding that the limited partnership is the real party in interest under Ross v. Bernhard and that its New Jersey citizenship — through Ved as a New Jersey limited p

California Business Transactions Civil Procedure Litigation

U.S. District Court — Central District of California

Powell v. Mercedes-Benz USA — C.D. Cal. Sua Sponte Remands Lemon-Law Suit Where Defendant’s Damages and Civil Penalty Estimates Were Speculative

/ January 12, 2026

Judge Anne Hwang sua sponte remanded a Mercedes-Benz lemon-law case after finding the defendant’s actual-damages calculation ignored the new January 2025 statutory offsets under Cal. Civ. Code § 871.27 and the conclusory willfulness allegation could not support adding $124,012 in civil penalti

California Business Transactions Litigation

2nd District Court of Appeal, Division Five

Chong v. Mardirossian Akaragian LLP — Client’s Ratification of Unauthorized Settlement Triggers Full Contingency Fee

/ January 8, 2026

Second District holds that a personal-injury client who ratifies an unauthorized settlement after firing his lawyer must pay the agreed contingency fee, not just quantum meruit, because his ratification was truly voluntary.

California Business Transactions Civil Procedure Litigation

U.S. District Court — Central District of California

Gifford v. General Motors LLC — C.D. Cal. Denies Remand of GMC Sierra 2500 Lemon-Law Suit Where Mileage Offset Erodes Damages but Civil Penalties and Repair History Save Federal Jurisdiction

/ January 7, 2026

Magistrate Judge Pedro V. Castillo denied remand of a 2019 GMC Sierra 2500 lemon-law case, holding documented actual damages of $41,341 plus civil penalties (twice actual damages, supported by nine unsuccessful repair attempts) brought the amount in controversy to roughly $124,023 — well over the $7

California Business Transactions Litigation

U.S. District Court — Northern District of California

Trimble Inc. v. Unity Software — N.D. Cal. compels arbitration of distribution-fee dispute under AAA delegation clause

/ January 7, 2026

Judge Gilliam compels arbitration of Trimble’s breach-of-contract suit against Unity Software over a disputed distribution fee, holding that the AAA delegation clause in Unity’s Terms of Service sends arbitrability questions — including the scope of the agreement — to the arbitrator.

California Business Transactions Litigation

U.S. District Court — Eastern District of California

In re Origin Materials Securities Litigation — E.D. Cal. Preliminarily Approves $9 Million Class Action Settlement

/ January 6, 2026

Eastern District of California preliminarily approves a $9 million settlement of a federal securities class action against Origin Materials, Inc. and its CEO over allegedly misleading statements about the construction timeline of its Origin 1 and Origin 2 manufacturing plants.

California Business Transactions Civil Procedure Litigation

U.S. District Court — Central District of California

Velazquez-Ortega v. General Motors LLC — C.D. Cal. Denies Lemon-Law Remand Where GM Documented Damages and Plaintiff Specifically Alleged Willfulness

/ January 6, 2026

Judge Sunshine Sykes denied remand of a Chevrolet Silverado lemon-law case where GM documented $67,065.58 in actual damages and plaintiff specifically alleged willfulness based on eight unsuccessful repair attempts, allowing civil penalties to push the amount in controversy to about $128,833 — well

California Business Transactions Litigation

U.S. District Court — Central District of California

Vacational Bike Rentals LLC v. Kitzuma Corp. — C.D. Cal. Allows Negligence and Unjust Enrichment Claims Against Cycling Logistics Defendants Where Carmack Preemption Is Unclear

/ January 6, 2026

Judge Christina Snyder allowed negligence and unjust enrichment claims to proceed in a $75,000 stolen-bicycle case against Kitzuma and BikeExchange, holding that Carmack Amendment preemption could not be resolved at the motion-to-dismiss stage because the operative pleading did not clearly character