Articles Posted in Civil Litigation

underwood-fiduciary-duty-300x300A fiduciary duty is a special kind of professional relationship that forms between an individual or entity and their client. California recognizes many types of fiduciary relationships; each carrying its own duties and expectations. Understanding how fiduciary relationships function, under what circumstances they are established, and how they can be violated will help you better protect yourself when navigating these professional relationships. 

What is a Fiduciary?

A fiduciary is an individual who holds a special position of legal responsibility to their client, as a personal representative, guardian, trustee, conservator, attorney-in-fact, or custodian under the California Uniform Transfer to Minors Act, or any other applicable legal representative. (Prob. Code., § 39.) Fiduciary relationships commence when the fiduciary begins acting on behalf of their client for the client’s benefit.  

underwood-law-putative-spouse-300x300In California, spouses and registered domestic partners are afforded specific legal protections because of their status as a “spouse” or “registered partner.” A putative spouse is different from an actual marriage and a registered domestic partnership but exists to provide the same protections in specific circumstances. The Putative Spouse Doctrine protects Putative Spouses when their marriage or registered domestic partnerships turns out to be invalid. Understanding what a putative spouse is will help ensure your property and interests are protected in the unfortunate circumstance that your marriage or registered domestic partnership is invalid. 

What Is a Putative Spouse?

A putative spouse is an individual who holds a good-faith belief that they are married to their spouse or are registered as domestic partners, when they are not in fact married or registered under California law. The Putative Spouse Doctrine codified in Family Code Section 2251 provides the good-faith spouse the ability to share in the benefits of property obtained during the relationship in a manner equivalent to that of community property. (Miller and Starr California Real Estate (4th Ed.) 4 Cal. Real Est. § 11:36.) 

underwood-guide-to-liquidated-damages-300x300In many contracts, the parties know that one person will be harmed if the other one breaches, but also realize that damage would be hard to calculate. So, what is a person to do to protect themselves from loss while also living their life in a way to pursue their goal? How can the law help people in that situation? 

In California, liquidated damages are designed to provide compensation if a hired party fails to perform their job by setting out the specific amount of damages that will be paid if a contract is breached. Liquidated damages are not intended to punish the breaching party. Understanding the purpose and function of liquidated damages will help ensure compensation is available when damages suffered are difficult to prove. 

What are Liquidated Damages?

underwood-small-estate-petitions-300x300An Assembly bill applying to decedents’ estates was finalized on August 29, 2024. The bill will amend six sections of the Probate Code (Cal. Prob. Code § 13100-13101, 13150-13152, 13154) and repeal one section (Prob. Code § 13158). This is significant because it impacts how successors of decedents can manage a decedent’s real property.

Specifically, this means real property in estates valued over $750,000, or that was not the primary residence, can no longer take advantage of this expedited process.

Generally, it takes a long time for an estate to go through probate, so this section of the code is meant to facilitate the distribution and disposal of certain types of property in the estate. Normally an estate goes through administration proceedings and to state a claim as a beneficiary that person needs to file a petition. (Prob. Code § 11700-11701.) The petitioning person has to notify the other settled heirs and beneficiaries who can fight the petition. (Prob. Code § 1220.) Because of these lengthy and expensive disputes, estates under a certain value were made exempt from the estate administration process. (Bucholtz v. Belshe (9th Cir. 1997) 114 F.3d 923, 927.) Currently, sections of the Probate Code allow property in an estate under a certain value to be disposed of by a successor. Once this new bill is enacted it will limit the exemption to which the property applies. 

underwood-trustee-removal-petition-300x300The purpose of this article is to explain what a trustee removal petition is. In a trust the trust is managed by the trustee, who is put in charge by the creator of the trust called the settlor. A trustee removal petition is made by a settlor, co-trustee, or beneficiary of the trust with the goal of removing the trustee. (Prob. Code, § 17200, subd. (b)(10).) Usually, this petition is made by a beneficiary, meaning the person or persons intended to benefit from the trust. 

Why would removal of a trustee be necessary?

A trustee is a person or persons intended to manage a trust. The trustee is meant to protect the trust and ensure beneficiaries are informed and included in any disputes arising with or against the trust. (Johnson v. Curley (1927) 83 Cal. App. 627, 630; Alexander v. Title Ins. & Trust Co. (1941) 48 Cal. App. 2d 488, 493–494.) 

underwood-primer-short-cause-trials-300x300The purpose of this article is to explain what a short cause trial is. A short cause case is a civil case where the parties or court estimate the trial will take five hours or less. Because of a short cause trial’s brevity, these types of cases can get priority in the courtroom. These trials can fill time slots between longer, bigger cases so they may be heard earlier. 

Short cause trials are common in family law court but can also arise in property disputes. Short cause trials are frequently used to address smaller legal issues and attorney fees and costs. (In re Marriage of Garcia (2017) 13 Cal.App.5th 1334, 1340–1341.) Just like a long cause trial, it is possible to appeal the judgment granted in a short cause trial. 

However, just because a matter is tried as a short cause case does not mean it is or should be treated as less important by the courts. If an issue is tried too quickly it will be remanded. For example, a 15-minute trial to decide how to split shared property from a 25-year marriage is much too short to decide such complex issues. (In re Marriage of Brantner (1977) 67 Cal.App.3d 416, 422.) Such a trial would be remanded and deemed an abuse of discretion by the trial court who took so little time for the issue. 

underwood-guide-statutory-settlement-offers-300x300California Code of Civil Procedure section 998 encourages parties involved in legal disputes to settle prior to trial. According to this law, either party can present a written settlement offer to the other party up to ten days before the trial begins. (CCP § 998(b).) 

If the plaintiff declines a timely offer from the defendant and subsequently receives a judgment at trial that isn’t more favorable than the defendant’s offer, the plaintiff must “pay the defendant’s costs from the time of the offer.” (CCP § 998(c)(1).) Moreover, in many civil cases, the court may also require the plaintiff to pay a reasonable amount of the defendant’s expert witness expenses incurred after the offer was presented.  

Likewise, if the defendant rejects the plaintiff’s timely offer and later gets a judgment at trial that isn’t more advantageous than what the plaintiff offered, the court has the authority to require the defendant to pay the plaintiff a reasonable portion of their costs related to expert witnesses incurred after the offer was made. (CCP § 998(d).) 

underwood-2024-updates-civil-discovery-300x300In almost all civil litigation in California, a major issue is the formal process of exchanging information and documents that address claims or defenses in dispute between the parties. In this system, discovery is “self-executing.” That means that no party to the lawsuit has any obligation to provide any information, unless requested through the formal methods outlined in the Civil Discovery Act. 

That is all potentially about to change. In 2024, next month, Code of Civil Procedure section 2016.090 will take effect. Recently, Governor Newsom signed Senate Bill 235 that amends two sections of the Code of Civil Procedure so that discovery in State Court becomes more like discovery in Federal Court. These experimental provisions, however, are set to last until January 1, 2027. (CCP § 2016.090(e).) 

The New Requirements

underwood-depositing-money-court-300x300Under certain special circumstances, money can be deposited with the court to safeguard during lawsuits under Code of Civil Procedure sections 572 and 573. The justification for such a rule is that, if the court doesn’t protect the money, the other party may spend it, rendering a plaintiff’s victory somewhat hollow. 

However, there are several important limitations in place in order for parties to actually utilize section 572. Chief among them is that the money needs to be “the subject of the litigation.” And even if the money does fall into this category, the Court cannot receive the funds until it is proven that the money is being held wrongfully. 

What is a money deposit with the Court?

underwood-service-by-publication-300x300Service of process is an important aspect of every lawsuit filed in California. If a defendant is not served and thus does not receive notice of a lawsuit, then any judgment entered against them is void, and the plaintiff will have to begin the litigation process all over again.

While service of process can be an easy affair when the locations of the defendant(s) are known, the situation becomes much more difficult when one or more parties don’t have a set address, or perhaps do not want to be found. 

At that juncture, service by publication may be available as a last resort. But litigants must take care to realize that service by publication is not automatic, and cannot be attempted from the outset. Instead, set statutory rules need to be followed before this method of service may be authorized by the court. 

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