Land & Lease: Schorr Law's Los Angeles Real Estate Attorney Blog

Real Estate Attorneys Los Angeles: Enforcing Judgments Even After Judgment Debtors File Bankruptcy.

Owner — Wed, 23 May 2012 21:44:47 +0000

Schorr Law’s Los Angeles based litigation practice recently obtained a successful fraud judgment for one of our clients. Parties who secure successful judgments may find, to their frustration, that the losing party has filed bankruptcy as a way to escape the judgment of the court. Yet, debtors who are found liable for non-dischargeable debts, such as fraud, cannot simply escape their judgments by filing for bankruptcy. 11 U.S.C. § 523 provides for many types of debts that cannot be discharged in bankruptcy. Under 11 U.S.C. § 523 (a)(2)(A), debts for money, goods or services acquired through acts of fraud, false pretenses or misrepresentation are not dischargeable in bankruptcy. Still, creditors must file a timely complaint with the bankruptcy court to ensure that debts resulting from fraud judgments are not discharged. Most United States Bankruptcy Courts require a filing no later than 60 days after the first date set for the meeting of creditors.

Creditors who have obtained a judgment for a non-dischargeable debt, such as fraud, will nevertheless wish to avoid the prospect of re-litigating the issue in bankruptcy court. These creditors will be relieved to know that, under California law, the doctrine of Collateral Estoppel allows a bankruptcy court to give preclusive effect to a state judgment. The bankruptcy court is required to apply Collateral Estoppel where the issues are identical, the party being estopped was a party in the prior adjudication and there was a final judgment on the issue. In re Bugna (9th Cir. 1994) 33 F3d 1054, 1057. Similarly, the bankruptcy court generally must treat default judgments with preclusive effect when the defendant had actual notice of the litigation, the opportunity to participate, the issue was “actually litigated” and ultimately decided in the previous litigation. In re Harmon (9th Cir. 2001) 250 F3d 1240, 1246–1249. Accordingly, creditors who correctly apply Collateral Estoppel will avoid wasting time re-litigating matters in bankruptcy court that have already been decided by a state court.

Schorr Law can help clients successfully obtain and secure judgments. Our attorneys understand the complexities of the litigation process and possess the high level of experience necessary to address any issue that may arise in litigation. As a result, Schorr Law has gained a reputation for obtaining positive results for our clients.

For more information or help with your dispute, contact Schorr Law, APC, www.schorr-law.com, 310-954-1877, info@schorr-law.com

Los Angeles Real Estate Attorney: The Legal Effect of Subleasing Property

Owner — Tue, 22 May 2012 20:24:51 +0000

Tenants often sublease the property they are leasing to a subtenant. Generally, the tenant and subtenant enter into a new contract (sublease), and the original lease between the landlord and tenant (master lease) remains intact. When this happens, the relationship between the landlord and tenant is unchanged: they are still in privity of contract (the parties are bound to the terms of the master lease) and in privity of estate (the parties are bound by the covenants that run with the land). And, the tenant and subtenant are now also in privity of contract.

Unfortunately (or fortunately) for landlords and subtenants, a sublease does not create any relationship between them absent an express assumption of the obligations of the master lease. In other words, the subtenant is not liable for any breach of the master lease, and the subtenant cannot enforce any terms or covenants in the master lease. The only recourse the landlord and subtenant have for breach of the master lease terms or any covenants is against the tenant.

To clarify, suppose A, an owner of property, leased the property to B. B (the tenant), decides to sublease the property to C, and B and C enter into a sublease. Despite the sublease, A and B remain in privity of contract and privity of estate. A and B may therefore bring claims against each other arising out of a breach of the lease terms or covenants. B and C are also in privity of contract and may bring claims against each other arising out of the breach of the sublease terms only (not on any covenants that run with the land). A and C, on the other hand, are not in privity of estate or privity of contract. Therefore, A and C may not bring any claims against each other arising out of either of the leases.

As a landlord, tenant, or subtenant, it is important to know the relationship that exists, or does not exist, between the other parties. To avoid issues arising out of any subtenancy, many landlords prohibit their tenants from subleasing. When subleasing is permitted, however, tenants should be aware that they remain liable to the landlord if the subtenant fails to pay rent, or otherwise breaches the master lease. Moreover, tenants may protect themselves from liability by requiring the subtenant to expressly assume the obligations arising out of the master lease.

Schorr Law can help you navigate complex leasing and subleasing issues and disputes. Our attorneys are uniquely positioned to provide you with an energetic, results-oriented, system of dispute resolution designed and proven to achieve the end results our clients desire.

By implementing a results-oriented system of litigation we develop a comprehensive case plan for your dispute, working backwards from your desired result. In so doing, we have a proven track record of obtaining the results our clients desire.

For more information or help with your dispute, contact Schorr Law, APC, www.schorr-law.com, 310-954-1877, info@schorr-law.com

By C. Mina Kim, Esq.

Los Angeles Real Estate Attorneys: Negotiating with the Bank on Commercial Guarantees.

Owner — Thu, 17 May 2012 16:02:57 +0000

As part of our Los Angeles based real estate litigation practice we are seeing an increase in litigation on commercial guarantees. In fact, in the past few months we have had 3 cases arising out of commercial guarantees. Most banks and lending institutions, as a condition for lending money, require business to provide guarantees for the loan by individual members of the business. This is also true in most commercial leases.

As part of these commercial guarantees, banks typically require the guarantors to waive nearly all of their defenses (even the statutory ones provided for in California’s Civil Code) that could possibly prevent the bank from collecting on the guarantees. At times, however, there are certain guarantees that the guarantors cannot waive by law. These can give the individual guarantors leverage against the bank in negotiating a cancellation of the guarantee or a settlement. In addition, guarantors can dispute the validity of the guarantee or simply negotiate with the bank about the bank’s inability to enforce the guarantee because of the guarantor’s financial condition.

Schorr Law can help guarantors successfully negotiate the end of their commercial guaranty. Our attorneys are uniquely positioned to provide you with an energetic, results-oriented, system of dispute resolution designed and proven to achieve the end results our clients desire.

For more information or help with your dispute, contact Schorr Law, APC, www.schorr-law.com, 310-954-1877, info@schorr-law.com

Los Angeles County Superior Court Cuts – Reduced Motion Calendar in Central District?

Owner — Thu, 26 Apr 2012 15:59:41 +0000

I was in court in downtown Los Angeles yesterday on a real estate litigation issue and the judge mentioned several times that the upcoming calendar for motions was likely to drastically change. Apparently, based on the information the judge said (in passing), it looks like civil motions will only be heard during 2 half days per week. In other words, litigants would no longer be able to have their hearings scheduled throughout the week. I am not sure how this will affect things, but I know that under our current system many of the courtrooms already have pretty long calendars five days a week. If we switch to two days a week, then I would not be shocked if it took 6 months to get a hearing date in some courtrooms. There is no way to really know what will happen, until it happens, but I hope we do not slow cases down even further.

For help with your litigation needs, contact Schorr Law, APC, info@schorr-law.com, www.schorr-law.com, 310-954-1877.

Los Angeles Real Estate Attorneys – Getting the Job Done in 2012 with 7 Judgments in The First 4 Months

Owner — Thu, 26 Apr 2012 15:52:43 +0000

We are only four months into 2012 and Schorr Law has already obtained 7 judgments in its clients’ favor. We strive to get the best results for our clients and already have a number of significant achievements this year.

For more information, contact Schorr Law, APC, 12100 Wilshire Boulevard, Ste 620, Los Angeles, Ca, info@schorr-law.com, www.schorr-law.com, 310-954-1877.

Los Angeles Real Estate Attorneys Schorr Law Obtain Terminating Sanctions and Judgment in Their Client’s Favor After Nearly 4 Years of Litigation

Owner — Wed, 25 Apr 2012 23:46:44 +0000

Schorr Law’s real estate attorneys are pleased to announce that after nearly four years of litigation, we obtained a judgment in our client’s favor today. This real estate litigation matter was originally filed against our client in June of 2008. Today, however, the judge ended the long fought battle by granting a judgment 100% in our client’s favor by awarding terminating sanctions against the plaintiff.

Today’s entry of judgment in our client’s favor is a significant victory for Schorr Law and its client. In the first four months of 2012, Schorr Law has already obtained 7 judgments in its clients favor. Moreover, terminating sanctions are extremely rare and this is the 3rd time in the past few years that we have been able to end a case through terminating sanctions.

Schorr Law represents a wide array of clients, including businesses and high net worth individuals for all of their real estate needs. Our attorneys are uniquely positioned to provide you with an energetic, results-oriented, system of dispute resolution designed and proven to achieve the end results our clients desire.

For more information or help with your dispute, contact Schorr Law, APC, www.schorr-law.com, 310-954-1877, info@schorr-law.com

Los Angeles Real Estate Attorneys Schorr Law Negotiates a $12 Million Loan

Owner — Thu, 19 Apr 2012 16:30:34 +0000

As part of Schorr Law full service real estate law practice we provide both litigation and transaction services. In the past few months we have been involved in negotiating several large deals, including a $12 million dollar commercial real estate loan secured by a commercial shopping center in Orange County. We frequently help with commercial lease negotiations, commercial purchase and sale agreements, which is a great compliment to our real estate litigation practice.

For more information, contact Zachary D. Schorr of Schorr Law, APC, 310-954-1877, info@schorr-law.com, www.schorr-law.com.

Los Angeles Real Estate Attorney: Los Angeles County Superior Court Cuts – Court Reporters No Longer To Be Provided

Owner — Thu, 19 Apr 2012 16:17:49 +0000

As a long time practicing real estate attorney in Los Angeles the recent cuts announced by the Los Angeles County Superior Court mark some of the biggest changes I have seen in a while. First, the Los Angeles County Superior Court announced closing 56 courtrooms. This is definitely going to slow down all litigation and will result in longer times to process a case through the system.

Second, and more interestingly, the Los Angeles County Superior Court announced that as of May 15, 2012 the Los Angeles County Superior Court will no longer provide court reporters for civil trials. That means, in order to have a record for appeal, litigants will have to bring their own court reporters to trial. These private court reporters will certainly be way more expensive than the court provided court reporters. In the end, the losing party will have to pay these court reporter fees as prevailing party costs, but the cost of going to trial will go up as of May 15, 2012. What is not clear is whether judges will be able to require the live feed that many judges use during trial. From experience, I have noticed that most judges rely on the live feed from the court reporter during trial to rule on objections, whether they will be able to require the live feed from the parties paying for their own court reporter (the live feed generally costs more money for the party) remains to be seen.

Finally, the Los Angeles County Superior Court also announced that as of June 18, 2012, court reporters will be available for civil law-and-motion matters on a limited basis. Again, that means there will be times when parties will have to bring their own court reporters for law and motion hearings. This has many effects. For example, if there are several law and motion matters on calendar in the same department and the same day it is conceivable that there will be significant calendar delays while different court reporters set up to transcribe the hearings. This could be problematic and further slow down an already clogged system.

I wonder whether the court will eventually shift to an audio recording of the proceedings or perhaps even a program that provides automated dictation – like the Dragon dictation app. The parties could then pay to have the audio recording professionally transcribed in the event that they actually need the transcript for appeal. This seems to be the best solution and is employed in other states. Only time will tell…

By Zachary D. Schorr, Schorr Law, A Professional Corporation, www.schorr-law.com, 310-954-1877, info@schorr-law.com.

Los Angeles Post Judgment Collection – Sheriff’s Sale

Owner — Mon, 19 Mar 2012 01:54:25 +0000

A little over a week ago, Schorr Law helped one of its clients collect on a nearly 20 year old judgment. After much wrangling with the debtor, including a bankruptcy filing, Schorr Law was successful in selling the debtor’s home. This is extreme, but after nearly 20 years of failed collection attempts, there literally were no other collection options left.

Schorr Law is also currently in the process of selling another debtor’s commercial property in downtown Los Angeles.

We take great pride in not just getting our clients judgments, but collecting. This is not easy in this poor economy, but if there is an asset, we will do our best to get it for our clients.

For more information on Los Angeles post judgment collection, contact us. www.schorr-law.com, 310-954-1877, info@schorr-law.com

California Purchase and Sale Contracts – Waiver of Specific Performance

Owner — Fri, 09 Mar 2012 21:06:18 +0000

Buyers of real property are often overwhelmed by the numerous, extensive provisions in purchase agreements. Unfortunately, because of this, many buyers enter into purchase agreements without fully understanding what they are agreeing to. Buyers’ failure to understand the provisions, however, may result in their waiving of important rights.

Normally, when a seller breaches a purchase agreement by refusing to convey the property, the buyer may sue the seller for specific performance, compelling the seller to convey the property. The seller may also concurrently record a lis pendens, which will make the property unmarketable until it is expunged or the seller wins the lawsuit. In fact, it is standard practice to record a lis pendens when making a claim for specific performance of a real estate purchase agreement.

With this in mind, experienced sellers frequently require buyers to waive their rights to seek specific performance and to record a lis pendens. These waivers are binding on buyers and will prevent buyers from seeking specific performance against the sellers. On the other hand, buyers may still be able to bring a claim against the sellers for money damages. This may not be an ideal option for buyers, however, because they will ultimately lose out on obtaining the property they hoped to purchase. It is therefore important to be careful not to limit your right to specific performance and to preserve the remedies of specific performance and the recovery of damages.

By. C. Mina Kim, Esq.

For more information, contact Schorr Law, APC, www.schorr-law.com, 310-954-1877, info@schorr-law.com