Articles Tagged with Los Angeles business lawyer

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 When an employer is sued by an employee, it’s natural to want to end the proceedings quickly. However, it is not legal for an employer to take any retaliatory action against a worker, especially one that is suing them. As a recent decision by the Ninth Circuit Court of Appeals demonstrates, it also may be illegal for an attorney acting on behalf of the employer to retaliate.

Retaliation-32004699-001José Arias was an undocumented alien who had been working for Angelo Dairy for a decade in 2006 when he filed a wage lawsuit. Arias alleged that he had not been paid for overtime hours and that he had not received mandatory rest and meal periods. The dairy retained lawyer Anthony Raimondo to represent them in the lawsuit. Raimondo began working on due diligence, looking into Arias’ past as well as examining other pertinent facts.

A few weeks before the trial was scheduled to begin, Arias had an appointment for a deposition. What he didn’t know was that Raimondo had gotten in touch with Immigration and Custom Enforcement, or ICE, which led the lawyer to the discovery that Arias had no legal status in the U.S. Further, Raimondo had arranged for Arias to be taken into ICE custody at the deposition. Arias learned of the plan and promptly settled the litigation.

Then, the next phase began. Arias filed suit against Raimondo for violation of the Fair Labor Standards Act. While the majority of the provisions in this law apply only to direct employers, the retaliation portions apply to employers and those who are empowered to act on their behalf. An initial court decision on the lawsuit sided with Raimondo, but Arias appealed the decision. The appeals court sided with him.

Most reputable employment lawyers are unlikely to recommend that their clients try to have an employee deported or otherwise take an adverse action against them. To do so only opens the employer up to more legal trouble, and the same is true for the lawyer who takes a direct, punitive action toward an employee. It is far better to let the courts decide.

Feel free to contact me, Richard Oppenheim with employment law questions. I may be reached at 818-461-8500 or by using the “Contact Us” box in the right column.

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Years of highly contested, and well-publicized, litigation have made employers aware of the dangers of discriminating against workers based on gender, sexual orientation, race and religion. It’s not unusual for company executives to work with an employment attorney when they are developing or revamping their practices. Unfortunately, age discrimination tends to be overlooked.

Age-Discrimination-132214651-e1500063954245This oversight is coming to the forefront with litigation filed in the U.S. District Court in New Jersey. Plaintiffs allege that their former employer, AT&T, systematically shed older workers in an effort to gain a workforce that has more advanced technological skills. The complaint relies largely on the Age Discrimination in Employment Act, a 1967 law that protects applicants and employees who are 40 or older. Essentially, the law makes it illegal for companies to make hiring, firing, promotion and compensation decisions based solely on age.

Plaintiffs argue that AT&T relied on age-based stereotypes to purge older workers. The process involved notifying the older workers that they had been placed on “surplus” status. They had a set amount of time within which they must be accepted into an alternative position within the company. However, the plaintiffs say that the selection process for those alternative positions was biased against the older employees who had been categorized as surplus. When they were unable to find another position, the workers were laid off.

Some of these employees say that they received a severance check, and that they were told by AT&T that they would be unable to sue the company under anti-discrimination laws if they took the money. Lawyers for the plaintiffs say that’s not necessarily the case, especially if the notice given to employees did not contain certain stipulated language.

The former employees cite a company blog post that described AT&T’s “Workplace 2020” program, which admitted that age-based stereotypes are being weighed in employment decisions. According to plaintiff descriptions of the blog post, older workers are the employees of yesterday while younger workers are considered more desirable.

This litigation serves as a timely reminder for all employers to be mindful of their employment practices with respect to older workers.

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Telecom giant CenturyLink is now a defendant in a potentially massive class action lawsuit in which total damages could amount to between $600 million and $12 billion if the claim is successful. Legal analysts say that CenturyLink customers should be prepared to review their bills to see if they were charged for accounts that they did not actually request.

Whistleblower-6928551-001In a situation that is eerily similar to the Wells Fargo Bank scandal that broke in 2016, CenturyLink is being accused of setting up dummy accounts, and then charging customers for them. The alleged misconduct came to light after former CenturyLink employee Heidi Heiser, who is branding herself as a whistleblower, sued her former employer over what she termed a high-pressure sales atmosphere. Heiser worked for CenturyLink for approximately one year, and charges that she was fired after using a company Q&A session to tell CEO Glen Post about suspicions that the company was charging its customers for services they did not ask for.

A lawsuit has now been filed in California on behalf of CenturyLink customers who believe they have been defrauded by the company. Among the allegations are unjust enrichment, unfair competition and fraud. Officials from the Better Business Bureau in Denver, which broadcast a warning about CenturyLink early this year, are encouraging customers to closely review their bills.

A CenturyLink spokesman states, “The allegations made by our former employee are completely inconsistent with our company policies, culture and unifying principles, which include honesty and integrity.” This lawsuit comes at a particularly critical moment for CenturyLink as they are negotiating a merger with Level 3 Communications.

The class action lawsuit names plaintiffs Craig McLeod and Steven McCauley. Both are customers of CenturyLink who say that they have been over-charged. McLeod contends that he was quoted a charge of an extra two dollars per month for a faster Internet connection. However, he was charged considerably more than that, and he also received a bill for a repair that never occurred.

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A former Amazon employee is suing his erstwhile employer over not being paid overtime. In the lawsuit, he asserts that Amazon misclassified him as a salaried manager that was not entitled to overtime. However, the worker says that the duties he performed were those of a manual laborer who should have been eligible for overtime. This case is a useful reminder for all employers to review their classification and compensation packages to ensure that they don’t encounter a similar issue.

clock-overtime-110616811-001Michael Ortiz was hired as a shift supervisor at Amazon warehouses in California. His official title was “Level-4 Manager,” a position that was supposed to cover mainly supervisory duties. Amazon’s policy defines this type of job as a salaried position that is not eligible for overtime. Entry-level “associates” whose main responsibility is moving packages, are hourly workers who can be paid overtime, and that is the work that Ortiz contends he was doing.

In the complaint filed in Contra Costa County Superior Court, Ortiz says that he spent his days loading and sorting boxes or clearing up jams on conveyor belts. Similarly, he asserts that he frequently worked days that were longer than eight hours and in excess of 40 hours per week. Only a minimum of his time was spent in supervisory or managerial duties, Ortiz contends.

According to the complaint, there may be thousands of other people who are current or former Amazon employees who may have experienced a similar situation. At the heart of the story is a central question: Did Amazon knowingly misclassify workers in an attempt to avoid paying overtime? If so, then they may find themselves on the hook for multiple thousands, if not millions, of dollars in back wages.

This lawsuit is still in its early stages, and Amazon has said that they will not comment on pending legal matters. It’s fairly safe to assume that both sides of this issue are going to dig in their heels, so a long fight is all but assured. Reviewing company classification and compensation plans with an employment lawyer is advisable for avoiding a similar situation.

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Patent trolls may find it harder to do business thanks to a decision by the U.S. Supreme Court. That is good news for any business or entrepreneur who has ever been the subject of a frivolous patent infringement lawsuit. However, the decision also may make it more difficult to pursue legitimate infringement complaints.

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Companies that function as patent trolls make a practice of buying up patents merely for the purpose of suing large companies for infringement. They don’t make a product, nor do they provide a service. They earn a “profit” by collecting settlements from businesses that want to avoid the time and expense of a lengthy lawsuit.

Formerly, patent trolls could file complaints in any court district that they felt would be most advantageous to them. The Eastern District of Texas, in particular, is considered friendly toward such lawsuits. Most of the cases were decided quickly in favor of the patent owner, resulting in large settlements. In fact, the favorable climate for filing infringement lawsuits in the area became something of a cottage industry. One hotel in Marshall, Texas even purchased an account with the U.S. District Court’s online database to improve their appeal to visiting lawyers.

Under this model, the company being sued didn’t have to be located or associated with Texas in any way, forcing representatives to travel to defend themselves. This new decision by the Supreme Court changes that as it requires that patent infringement lawsuits be filed in the state in which the defendant is incorporated.

The decision was rendered on a case involving TC Heartland, an Indiana company that was being sued for patent infringement by Kraft Heinz in Delaware. Counsel for TC Heartland argued that they shouldn’t have to be sued in Delaware, and the Supreme Court ultimately agreed. While this decision is likely to slow down patent trolls, it also may make things more difficult for entrepreneurs who want to assert their patent rights against an organization in another state.

Anyone who is being sued for patent infringement or believes that their rights are being infringed, needs to retain intellectual property counsel.

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The one-time owner of a successful car dealership group in California has been awarded more than $256 million by a jury. Mike Kahn, who ran the Superior Automotive Group with dealerships in LA and San Francisco, fought Nissan Motor Acceptance Corp. for eight years before achieving this judgment. NMAC is the financing arm of the Nissan company, and its representatives say that they plan to appeal this verdict.

1504001-Gavel-Money-2During the financial crash of 2008-2010, many new-car dealerships were struggling. Superior’s were among these, but this wasn’t always the case. Nissan had recognized Superior as one of the top three dealership groups in the world prior to 2008. The company had sold more than $1 billion of inventory in the period between 2001 and 2008. That all changed with the economic downturn. Suddenly, consumers weren’t buying cars.

Typically, car dealerships finance the purchase of new cars through an organization like NMAC. The loan on the car is frequently paid back when the car is sold to a consumer. However, with cars not moving, dealerships everywhere were defaulting on these loans. Mike Kahn’s dealerships were among these. He reached out to NMAC, asking for them to not default him on his outstanding loans. The company agreed, and then proceeded with a default anyway.

Kahn sold one of his dealerships to cover some of what he owed to NMAC, but it wasn’t enough. More than 800 employees were put out of work when all seven dealerships had to close, and NMAC sued Kahn for an additional $40 million while also seizing all of his personal and business assets. A relationship that once thrived was now deeply contentious.

Kahn countersued and eventually prevailed after nearly a decade of litigation. A jury awarded him compensatory and punitive damages in what appears to be an indictment of large corporations deliberately putting local companies on the chopping block. NMAC plans to appeal the decision, so this saga is not over yet. Nonetheless, this is an apt demonstration of how an excellent partnership can quickly go wrong, making the requirement for careful planning and good contracts a necessity.

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Getting a high-profile celebrity to endorse a product or service can be a major coup. After all, in a society that emulates famous personalities, what could be more desirable than an A-list star saying that they use a company’s wares?

Reputation-Management-105888720-001While celebrities are public personalities, this does not necessarily mean that their images can be used for a marketing campaign without their permission. Traditionally, lawsuits have sprung up around campaigns that utilized the voice or image of a famous person without their consent. These campaigns were problematic because they caused the public to believe that the celebrity was endorsing the product.

While those kinds of lawsuits still occur, a recent lawsuit that Sofia Vergara settled against Venus Concept highlights a new wrinkle in this area of law. The trouble began in 2014 when Vergara posted a photo to her WhoSay account. Vergara was undergoing a massage using a Venus machine. Venus Concept learned of the image and subsequently used it on their social media accounts, claiming that Vergara “loved” the treatments.

Unfortunately, Vergara contends that she found the treatments a waste of time and money, and that she had no intention of starring in a campaign for the company. Arguing that she had been paid $15 million for other endorsements, Vergara sued Venus Concept for that amount, which would approximate the money she would have received if she had agreed to endorse the product.

The early settlement of the suit suggests that Venus Concept backed off fairly quickly. However, their legal troubles were probably completely unexpected. It’s easy to imagine that executives at the company were eager to promote their brand and an apparent association with an A-list television star. They made the mistake of not even asking for permission to re-use Vergara’s image, let alone negotiating a deal that might have been mutually beneficial.

While it is exceptionally easy to re-post the social media commentary of others, it is not always a good idea to do so without seeking their permission. This is particularly true with high-profile personalities. When in doubt, it is always best to seek legal counsel.

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One of the questions I hear frequently is about whether we are accepting new clients.

While the short answer is “Yes”, here is some additional information which many people find interesting.

Great%20Fit%20Gears%2039896521-001.jpgOur law firm, Sylvester Oppenheim & Linde is committed to client service and quality legal representation for each and every client. That means that we only accept clients who we feel are a good match for our expertise, experience and areas of practice.

I learned a long time ago that we can’t be all things to all clients, but we can be all things to some clients: and those are the ones we welcome and serve in an exemplary manner.

The purpose of this blog is to provide helpful information to anyone who reads it. On our website, you will find another example of our “Be of Service” attitude by reading our Home Page Article “Eleven Questions to ask BEFORE Hiring a Business Attorney“. You will also find a list of our practice areas on that page.

Our clients tell us that they appreciate our honesty, accessibility and guidance. And we appreciate our clients.

Back to the question. The answer is: “Yes, we are always looking for one or two new good clients.” If you have a legal issue, I invite you to call and let’s find out whether we are a great fit for each other. I can be reached at 818-461-8500 or via the Contact form on this page.

Richard Oppenheim

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Does a company have the right to use someone’s image without their permission? That question is central to a new lawsuit. While the lawsuit’s merit remains undetermined, it is stirring up negative publicity for the company. Entrepreneurs who are starting an ad campaign may want to consult with an experienced business attorney to avoid finding themselves in a similar situation.

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Plaintiff Leah Caldwell filed her lawsuit against Chipotle Mexican Grill. The complaint names Steve Ells, the company’s founder and CEO, as a defendant as well as a photographer named Steve Adams.

Caldwell alleges in her complaint that her photograph was taken without her knowledge while she ate in a Chipotle restaurant in Denver during the summer of 2006. She recalls that the restaurant was virtually empty, and she also states that she did not see any cameras or notices of a photo shoot being underway. Nevertheless, as she left the restaurant, she alleges that Adams approached her and asked if she would sign a release for the use of her image. Caldwell refused.

Caldwell was in Orlando in December 2014 when she visited another Chipotle location, only to see her image displayed. In her complaint, she says that the image was digitally altered, most notably by including bottles of alcohol in her vicinity. A few months later, she visited two other Chipotle locations in California, only to see her picture yet again.

She responded by filing the lawsuit, claiming that Chipotle did not have the right to use her image in their marketing campaign. Caldwell is representing herself in the case, and she has asked for a settlement of more than two billion dollars, the amount which she says the restaurant chain earned as a result of the use of her unauthorized photo.

Chipotle has not commented publicly on the suit, and much investigation will be required to determine whether or not Caldwell’s rights were violated and if so, how much money she may be entitled to. Speaking with a qualified business attorney is the best way to avoid legal pitfalls when it comes to using or designing marketing materials.

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A screenwriter/producer is suing The Walt Disney Company over its award-winning animated film “Zootopia.” The writer claims that the entertainment giant stole his idea after he pitched it to studio executives in 2000 and 2009.

Copyright-Law-135827413-001Gary Goldman, whose many credits include writing the script for “Total Recall” and acting as an executive producer for “Minority Report,” filed the lawsuit in March 2017. Goldman asserts that he produced a treatment in 2000 that dealt with “an animated cartoon world that metaphorically explores life in America through … anthropomorphic animals.” His treatment included a human cartoonist who creates the world of the anthropomorphic animals, which would be called Zootopia. The title of the project was “Looney.”

Goldman says he pitched his idea to a Disney executive in 2000, but that the studio passed on the project. The subject came up again in 2009, this time with Goldman providing executives with a more developed treatment that included illustrations and descriptions of characters. Disney said the project would be considered, but Goldman alleges that they never contacted him. Shortly afterward, Disney appeared to be developing a Zootopia project of their own.

The plaintiff in this case appears to have done almost everything right. He registered the original treatment with the Writer’s Guild to protect ownership of the source material. However, current media reports do not disclose whether or not he took further steps to protect his rights, like asking Disney executives to sign a legally-binding agreement before showing them any intellectual property.

The question of whether Disney “stole” or was at least “inspired by” Goldman’s ideas remains unanswered at this time. Comparing the character illustrations commissioned by Goldman with the final look of the characters in the completed film does show some similarities. However, this is not necessarily enough to convince a judge that Disney borrowed someone else’s ideas. After all, anthropomorphic animals confronting human issues in a cartoon world is hardly a concept that hasn’t been explored in detail before Zootopia.

Companies and individuals that want to protect valuable intellectual property are encouraged to consult with legal counsel before sharing their ideas.