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Defendant attorney's threats to reveal plaintiff's alleged crimes to a merger partner when coupled with a demand to settle the defendant's client's employment claims constituted extortion.  Extortion is the threat to reveal damaging information if money isn't paid.  There is no need to prove that the threat has been carried out.  Extortion is not protected speech.  Flatley v. Mauro (2006)… Read More

Lab. Code 1102.6 prescribes the burdens of proof on a claim for retaliation against a whistleblower in violation of Lab. Code 1102.5.  First, the employee-whistleblower bears the burden of proving by a preponderance of the evidence that retaliation against him for whistleblowing was a contributing factor in the employer’s taking adverse employment action against him.  Then, the employer bears the… Read More

Tricked by a hacker's sending emails purportedly from her boss, Ernst's accounts payable clerk wire transferred $200,000 to banks from which the money was swiftly withdrawn.  Ernst sued its insurer to recoup its losses.  This decision holds that the loss fell within the computer fraud coverage of loss “resulting directly from the use of any computer to fraudulently cause a… Read More

Gov. Code 831.7 (dealing with hazardous recreational activities) immunizes Santa Barbara from liability for the death by drowning of a paddle boarder.  Stand-up paddle boarding is a hazardous recreational activity.  Santa Barbara had no duty to warn as the risk of falling from the paddle board and drowning was inherent in the sport.  Santa Barbara was not grossly negligent, having… Read More

Following David S. Karton, A Law Corp. v. Dougherty (2014) 231 Cal.App.4th 600, this decision holds that when a defendant pays a default judgment entered against him before successfully moving to vacate the default judgment (and hence before filing an answer), Civ. Code 1717(b)(2) applies, making the defendant the prevailing party for purposes of a fee award if the plaintiff… Read More

Ordinarily, an order on a motion for an attorney fee award is appealable as a post-judgment order under CCP 904.1(a)(2).  But here, to maintain the trial court's jurisdiction to enforce a settlement agreement, the parties agreed that judgment would not be entered dismissing the action until after defendant had paid the settlement amount and any attorney fees awarded by the… Read More

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