As companies continue to navigate how to do business during the coronavirus, the threats to data and privacy continue to grow. Many hackers are using the pandemic to launch new phishing scams, putting data increasingly at risk. Klinedinst corporate attorney James D. Snyder provides guidance and tangible steps companies can take to lock down data during COVID-19 to protect you and your customers. 

By James D. Snyder

With the majority of the world working remotely due to COVID-19, we are all trying to adjust and continue to be productive in these very uncertain times.  When we are in the office, we take for granted the data security and privacy protections that are readily available. At home, there are certain risks involving data privacy that we should be aware of. This brief article will identify some of the data privacy issues to consider while working remotely for the foreseeable future to ensure that when we transition back to office-life, our data (and our customers, clients, patients, etc.) will be safe and protected.

When working from home, you connect to your home Wi-Fi network and the risk of a data breach is generally higher at home given less protection. The security built into the office’s network is not as robust at home generally making home an easier target for things like malware and malicious attacks. If you are using an unsecured Wi-Fi connection, always refrain from using your login information because your data can be intercepted by third parties. All of your data can be accessed in these circumstances while on the unsecured network. If the company has a virtual private network (VPN) option, it is a great idea to use the VPN access because the VPN establishes a secure and encrypted connection.  This will provide greater privacy and security protection than a secured Wi-Fi! It is a good idea to, therefore, follow company guidelines and if possible, secure your home network (or use a VPN) and use commercially available antivirus software or firewalls.

While it may be easier and quicker to send that quick email on your personal device when you are working at the house, keep in mind that your personal laptop (as an example) likely has less security and backup software access and therefore it is riskier than your company-issued devices.  Your personal device is much more likely to be infected with malware (without you even being aware) and accessing company data through your personal device can, therefore, infect the company’s data.  Using a personal laptop at home could also potentially open up access to your personal data stored on your computer to your employer.  Neither your employer nor you want that…

One simple way to safeguard data is to lock your computer when leaving your home work station.  This is a good practice even while in the office and should be followed regularly.  Much of what we do nowadays can be done on your smartphone as well so protecting your phone (and computer) with an appropriate password is highly recommended.  It is likely that your company already requires you to change your passwords every 30, 60, or 90 days.  Following this and using challenging passwords is really necessary as hackers are becoming more and more capable (get in the practice of updating your phone’s password with your computer at the same time).  

In addition to locking your devices down, another simple measure is to not leave your devices unattended.  Leaving your laptop or smartphone can create an opportunity for someone to access the device without your knowledge.  If your device were to be taken or accessed the device’s data can be downloaded or deleted (even if there is not a breach, losing data can be disastrous).  Of course, if the devices are locked you may be in the clear, but keeping the devices in a secure location is a good idea as well.

Regardless of whether you have a secure network, backing up your data is critical these days.  No one wants to have to recreate massive amounts of data due to a data loss.  Loss of data may also be considered a data breach and under the California Consumer Privacy Act (CCPA), your company may require access to the data to produce data due to consumer requests.  Given working from home increases your vulnerability to security attacks, and given computers can simply be damaged or fail, backing up data can really be a lifesaver if something were to go wrong.  There are ample cloud-based backup options and your company may already provide you with access.  Consult your company’s IT group (if applicable) and discuss your back up options—you’ll be happy you did if you, unfortunately, have a data loss.

Finally, if you deal with personal health information (PHI) then the Health Insurance Portability and Accountably Act (HIPAA) applies and needs to be considered.  The Department of Health and Human Services (HHS) regularly levies hefty penalties for the failure to properly manage remote worker’s access and protection of PHI.  There are many examples of penalties levied by the HHS, but one that comes to recent memory include a $750,000 settlement between Cancer Care Group and HHS due to a remote employee losing a laptop when the employee’s car was broken into (link:  https://www.hhs.gov/hipaa/for-professionals/compliance-enforcement/examples/cancer-care-group/index.html).  Another example is a settlement between Lincare and HHS for $240,000, where a remote employee failed to safeguard PMI by exposing and abandoning the records (link:  https://www.hhs.gov/hipaa/for-professionals/compliance-enforcement/agreements/lincare/index.html).  All of the above suggestions will certainly help protect PMI but employers should note which employees are remote workers and record the level of information to which these employees have access to (with respect to PMI).  If your company deals with PMI it is good to have robust data privacy and security policy and train all staff that has access to the PMI.  

Given the majority of the world’s workforce is working remotely now, it is a great time to revisit our data privacy and security practices and procedures.  Taking these steps will ensure the company is compliant with applicable data privacy laws (CCPA, GDPR, HIPAA, etc) and help you (the employee) keep data safe and secure.   

Should you or your company need help to secure your own or your employees homework environment, Klinedinst PC can help!  Our team of data privacy professionals can help customize a data privacy solution and training for you. We will work with you to understand your business’ needs and prepare a holistic solution to include data privacy and security policies and procedures, disaster recovery policies, confidentiality agreements, and data privacy agreements as well as policies for human resources such as a Bring Your Own Device (BYOD) policy.

About the Author

James D. Snyder

In his practice, Mr. Snyder represents clients in business transactions, M&A, and data privacy issues. He provides legal and compliance counsel to emerging startups and established companies in areas involving licensing, finance and investments, data privacy and security, corporate structuring, contracts, patent, trademark, copyright, and domain portfolios. He has built a reputation as an outside General Counsel, providing legal guidance on a wide range of issues. For questions about policies, documentation, or best practices for remote employees, contact Mr. Snyder at jsnyder@klinedinstlaw.com.

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Los Angeles, Sacramento, San Diego, Irvine, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.

This article is intended to be for informational purposes only. This information does not constitute legal advice. The law is constantly changing and the information may not be complete or correct depending on the date of the article and your particular legal problem. The use of information from this article does not create any type of attorney-client relationship.

The following is an analysis of new emergency rules enacted by the California Judicial Council impacting both appeals and writ petitions. The analysis is written by Robert M. Shaughnessy, Shareholder and Certified Specialist in Appellate Law by the State Bar of California Board of Legal Specialization.

On March 19, 2020, Governor Newsom issued California’s stay-home order amidst the rising COVID-19 pandemic. Within days, the state’s trial courts were effectively closed to most civil litigants. Skeleton crews remained at shuttered courthouses to process criminal cases due to constitutional concerns. But to protect the health and safety of judicial officers, court staff, parties, and attorneys, only limited civil matters presenting emergency circumstances could access these scarce judicial resources.

Now in late April, it appears that anything resembling a return to normal operations for civil litigation matters at the trial court is months away. The current understanding is that the stay-home order will remain in place until California sees 14 consecutive days of decreasing new cases. Accordingly, the trial courts anticipate extending their current closures well into May.

Even assuming the stay-home order flattens the curve, and the courts reopen in four weeks, criminal cases will continue to receive priority over all civil matters for at least the next few months. Social distancing will also likely remain in place, resulting in reduced court staff and a further decreased capacity to hear civil trials and law and motion matters. In addition, the backlog of canceled civil law and motion hearings that must be rescheduled will number well into the thousands in the larger courthouses by the end of May. In other words, delayed and restricted access to justice will likely continue to hamper civil litigants well into the Fall, even under the best of circumstances. In San Diego alone, the number of civil matters which will need to be re-set by May 22 is estimated to approximate 15,000. Under a best-case scenario, in-person civil hearings would not resume until August.

California’s Judicial Council adopted a set of Emergency Rules on April 6, 2020, to address the court closures. These rules included “Emergency Rule 8: Emergency orders: temporary restraining or protective orders.” The rule applies “to any emergency protective order, temporary restraining order, or criminal protective order that was requested, issued, or set to expire during the state of emergency related to the COVID-19 pandemic.” (Em. Rule 8(a).) And it includes language providing that courts must provide a means for the filing of ex parte requests for temporary restraining orders. (Em. Rule 8(c).) But Rule 8’s application seems limited to matters of domestic violence, harassment including workplace harassment, threatened gun violence, and juvenile protective proceedings. (Em. Rule 8(a).) Even if the rule applied to requests to restrain conduct causing severe economic harm in a business-litigation context, it is not clear that trial courts currently have the judicial resources to timely consider restraining order applications in civil and business litigation matters where their judicial resources are halved, stretched to the breaking point, and focused on criminal matters. 

Klinedinst’s appellate attorneys can explore possible remedies in the Court of Appeal, either through an appeal, or a petition seeking a writ directing the trial court to grant relief. Access to the remedies of the appellate court may be available whether or not an appealable judgment or order exists. And unlike the trial courts, under the shut-down order California’s appellate courts continue to accept filings electronically, and continue to move forward with the processing of motions, appeals, and writ proceedings in civil and criminal matters. Oral arguments are also going forward by remote access. Klinedinst’s appellate attorneys are ready and able now to explore potential appellate court remedies, where access to the trial court is hindered by the severe conditions which prevail in this unprecedented time. 

About the Author

Photo of Robert M. Shaughnessy

A seasoned litigator, Robert M. Shaughnessy  brings nearly twenty years of complex law-and-motion and appellate experience to the firm’s Appellate Practice Group. Mr. Shaughnessy frequently authors articles on various legal topics including the unauthorized practice of law, malicious prosecution, the Unfair Competition Law, and California’s Anti-SLAPP statute. He is a leader in the legal community, and currently serves as Chair of the San Diego County Bar Association’s (SDCBA) Appellate Practice Section, where he has held past positions as Program Chair and Civil Rules Comment Chair. Mr. Shaughnessy can be reached at rshaughnessy@klinedinstlaw.com.

Please Note

This article is intended to be for informational purposes only. This information does not constitute legal advice. The law is constantly changing and the information may not be complete or correct depending on the date of the article and your particular legal problem. The use of information from this article does not create any type of attorney-client relationship.

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Los Angeles, Sacramento, San Diego, Irvine, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.

Klinedinst’s newest web-based tool helps connect clients with lawyers using the latest virtual teleconference services. It provides how-to guides, best practices, and links to useful resources as businesses and individuals increasingly connect with one another remotely.

SAN DIEGO, CALIFORNIA – With shelter-in-place orders remaining in place, many clients and legal professionals are trying to figure out best practices for connecting online. The use of teleconferencing services, such as Zoom, Webex, GoToMeeting, and others, is now helping connect clients with the legal resources they need in real-time.

To help navigate through the evolving world of web-based conferencing, Klinedinst has launched the new Lawyer Meeting Center, a new feature designed to offer useful tips and guides for individuals connecting with one another. The Lawyer Meeting Center covers a wide range of subjects, including:

  • Teleconferencing Services
  • Virtual Deposition Services
  • Mediation Companies Offering Remote Services

Klinedinst’s Lawyer Meeting Center includes how-to guides and setup instructions, along with best practices for using these virtual tools. It also provides pros and cons for many of the different services, an online listing of the major providers. as well as useful links and articles.

“The Lawyer Meeting Center is designed to specifically help facilitate teleconferences, which are fulfilling an important role while we shelter in place,” said Scott Carr, who oversees marketing and communications for Klinedinst PC. “Many clients are new to teleconferencing, as are opposing counsel and mediators. This is a virtual resource guide that we hope will be helpful for connecting with lawyers, long after the COVID-19 pandemic has come and gone.”

The Lawyer Meeting Center is now available online.

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Irvine, Los Angeles, Sacramento, San Diego, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.


The following is an analysis of new emergency rules enacted by the California Judicial Council, courtesy of Ian Rambarran, Shareholder with Klinedinst PC. Rambarran currently serves as California MBA Legal Issues Committee Chair.

On April 6, 2020 the California Judicial Council enacted emergency rules amid the COVID-19 crisis.  Among other things, the new rules apply to all unlawful detainer actions and judicial foreclosures.  These rules remain in effect until 90 days after the Governor declares the COVID-19 state of emergency is lifted or the rules are repealed by the Judicial Council.  A complete copy of the new emergency rules are available here:

Unlawful Detainer Evictions

The emergency rules now prevent the filing of new unlawful detainer actions, limit the ability to take a default, and postpone new and pending trial dates. Effective immediately:

  • Courts may not issue a summons on a complaint for any unlawful detainer action unless the court finds the action is necessary to protect public health and safety. 
  • Courts may not enter default or a default judgment unless both 1) the action is necessary to protect the public health, and 2) the defendant has not appeared in the action within the time provided by law, including response deadline extensions issued within any applicable executive order. 
  • Unlawful detainer trials pending as of April 6, 2020 must be continued a minimum of 60 days.  All matters not set for trial may not be set for trial less than 60 days after a request for trial unless the court finds an earlier trial date is necessary to protect public health and safety.

Like Governor Newson’s Executive Orders and President Trump’s CARES Act, these rules aim to prevent the displacement of tenants and occupants during the state of emergency.  However, this amendment is more expansive than Governor Newsom’s orders and President Trump’s CARES Act because it applies to all evictions – residential and commercial alike.

Judicial Foreclosures

The new rules also suspend all judicial foreclosures and prohibit courts from proceeding to judgment unless the court finds that the action is required to further public health and safety.  Further, the rules toll the statutes of limitation for filing a judicial foreclosure action and extend the equitable rights of redemption. 

Conclusion

In reality, the new rules fill in a gap on multiple levels.  They now afford protection to residential and commercial tenants or occupants and protect commercial and residential borrowers too (although residential borrowers normally do not face judicial foreclosure).  However, it is important to note that nothing contained in the new rules means that rent or monthly payments are forgiven.  Those moneys are still owed; however, no one can attempt to recover possession until 90 days after Governor Newsom declares the state of emergency is lifted or until the Judicial Council repeals the rules.  

About the Authors

Photo of Ian A. Rambarran
Ian A. Rambarran

Ian A. Rambarran works with the firm’s corporate clients, focusing primarily on business, financial services, employment, intellectual property, real estate, transportation, and construction issues. A graduate of the University of the Pacific, McGeorge School of Law, Mr. Rambarran currently serves as Chairman of the California MBA Legal Issues Committee. He frequently counsels and represents clients in business and commercial disputes, and represents lenders and financial institutions in disputes throughout California. Mr. Rambarran can be reached at irambarran@klinedinstlaw.com.

Please Note

This article is intended to be for informational purposes only. This information does not constitute legal advice. The law is constantly changing and the information may not be complete or correct depending on the date of the article and your particular legal problem. The use of information from this article does not create any type of attorney-client relationship.

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Los Angeles, Sacramento, San Diego, Irvine, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.

The following is an analysis of the CARES Act, courtesy of Ian Rambarran, Shareholder with Klinedinst PC.  Rambarran currently serves as California MBA Legal Issues Committee Chair.

President Trump signed into law the Coronavirus Aid, Relief, and Economic Stimulus (CARES) Act a little over a week ago. Today, lenders and servicers are quickly instituting processes to assist borrowers and tenants with COVID-19 related relief.  The CARES Act aims to streamline relief for all those affected by COVID-19, if the loans are federally backed.  This means that the CARES Act applies to all FHA, HUD, VA, Department of Agriculture Loans, Fannie Mae and Freddie Mac loans.

A complete copy of the CARES Act can be found at: congress.gov/bill/116th-congress/house-bill/748/text#toc-H4D5728D599DE43C1B10376E596A41BCE.

Forbearance Relief

Unlike the typical loss mitigation scenario, the Act creates an automatic 180-day forbearance if:

  1. A borrower is suffering financial hardship due directly or indirectly to COVID-19 and,
  2. A borrower affirms he or she is experiencing the hardship during the COVID-19 emergency (National Emergency declared by the President).

The forbearance option applies without regard to prior delinquency and the forbearance period may be extended an additional 180 days.  During the forbearance period, no fees, penalties, or interest beyond the amounts scheduled may be charged.  Effectively, lenders and servicers should calculate them as if the borrower had made all of his or her payments on time and in full. Additionally, following a request for forbearance, a servicer may not initiate foreclosure or execute a foreclosure-related eviction for at least 60 days.

The CARES Act states the only documentation required from the borrower is an attestation that their financial hardship is caused by COVID-19. It is not yet clear how attenuated the hardship may be to COVID-19, but the COVID-19 pandemic will affect all aspects of commerce because close to 90% of the country has been ordered to shelter in place.  Nearly any hardship could therefore be connected to COVID-19 based on circuitous logic.

Forbearance For Multifamily Properties

The CARES Act also applies to covered Multifamily Properties.  A multifamily borrower (borrower of a property of five or more dwellings) experiencing financial hardship either directly or indirectly because of COVID-19 may request forbearance either orally or by written request.  For this type of investment-based property, a servicer must document the hardship, provide forbearance for up to 30 days, and extend the forbearance for up to two additional 30 day periods, so long as a borrower makes the request at least 15 days prior to the end of a provided forbearance period.

The CARES Act also expects the benefits afforded to multifamily property owners be passed down to the tenants. For example, a borrower/landlord cannot evict a tenant nor can the borrower/landlord charge late fees or penalties against the tenant during the forbearance period. Indeed, the borrower cannot serve notices to vacate until after the expiration of the forbearance period and must provide at least 30 days to vacate.

Eviction Moratorium

The CARES Act implements a 120 days moratorium on all covered properties.  This means that the borrower may not: initiate an action (file a complaint) to recover the property based on nonpayment of rent or charge a tenant penalty for nonpayment of rent. Furthermore, a tenant must also receive at least 30 days’ notice to vacate and the notice may not be served until after the expiration of the 120-day period.  Following a foreclosure, the property owner steps into the shoes of the prior borrower/lessor.  Therefore, this enactment will limit the ability of lenders to proceed with actions such as unlawful detainers.

Foreclosure Moratorium

Finally, the CARES Act makes clears that a servicer “may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 60-day period beginning on March 18, 2020.”  The only exception to the foregoing is the property is vacant or abandoned.

Conclusion

The servicing landscape is quickly changing in light of the COVID-19 pandemic. The CARES Act provides extensive new protections for borrowers and occupants of covered properties. In order to ensure compliance with the CARES Act, lenders and servicers should exercise an abundance of caution before moving to foreclosure or eviction.  In fact, it would be prudent to communicate with the borrowers to ensure retention options are offered (not just received). Similar efforts should be provided to tenants as well.  By following a cautious approach, the lending and servicing industry will be ahead of any new regulatory concerns and support the policy goals of the CARES Act, which amongst other things, stabilizes the economy and secure public health.

About the Authors

Photo of Ian A. Rambarran
Ian A. Rambarran

Ian A. Rambarran works with the firm’s corporate clients, focusing primarily on business, financial services, employment, intellectual property, real estate, transportation, and construction issues. A graduate of the University of the Pacific, McGeorge School of Law, Mr. Rambarran currently serves as Chairman of the California MBA Legal Issues Committee. He frequently counsels and represents clients in business and commercial disputes, and represents lenders and financial institutions in disputes throughout California. Mr. Rambarran can be reached at irambarran@klinedinstlaw.com.

Please Note

This article is intended to be for informational purposes only. This information does not constitute legal advice. The law is constantly changing and the information may not be complete or correct depending on the date of the article and your particular legal problem. The use of information from this article does not create any type of attorney-client relationship.

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Los Angeles, Sacramento, San Diego, Irvine, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.

By Thomas E. Daugherty

On April 2, 2020, the County of San Diego issued an addendum to the existing Health Officer Order regarding the COVID-19 crisis, that requires that masks be worn by all employees who may have contact with the public in any grocery store, pharmacy/drug store, convenience store, gas station, restaurant and other business establishments that serves food.  The order takes effect 12:00 a.m. Saturday, April 4, 2020.  Paragraph Q of the Addendum provides:

Effective 12:00a.m. Saturday, April 4, 2020, all employees who may have contact with the public in any grocery store, pharmacy/drug store, convenience store, gas station, restaurant and other business establishment that serves food shall wear a cloth face covering as described in the California Department of Public Health Face Covering Guidance referenced in section 10, above.

Not all essential businesses are required to have their employees wear masks under this Addendum.  The trend may go that way, but right now it is limited to the categories listed in the Addendum for San Diego County.  It would be a reasonable and permissible step to take, to require all employees that interact with the public to wear masks, given the guidance from the State of California Health and Human Services Agency, dated April 1, under which all California residents are encouraged, but not required, to wear masks when out in public. 

Also, under the Addendum, all businesses that remain open to the public must prepare and post the Social Distancing and Sanitation Protocol, as provided by the County.  The Addendum provides in relevant part as follows: 

  • All businesses that remain in operation in accordance with the Order and that allow members of the public to enter a facility must prepare and post by no later than 12:00 a.m. on April 7, 2020 a “Social Distancing and Sanitation Protocol” on the form attached to this Order as for each of their facilities open to the public in the county.
  • The Social Distancing and Sanitation Protocol must be posted at or near the entrance of the relevant facility, and shall be easily viewable by the public and employees.
  • A copy of the Social Distancing and Sanitation Protocol must also be provided to each employee performing work at the facility.
  • All businesses shall implement the Social Distancing and Sanitation Protocol and provide evidence of its implementation to any authority enforcing this Order upon demand.
  • The Social Distancing and Sanitation Protocol must ensure all required measures are implemented and must identify and require measures necessary to implement social distancing are implemented at each facility that will ensure social distancing and sanitation at that particular facility.
  • If the measures identified and implemented are not effective in maintaining proper social distancing and sanitation, additional measures shall be identified and implemented or the facility shall be closed.

The Social Distancing and Sanitation Protocol form is available on the San Diego County website. You can also access Stay at Home documents released by the County of San Diego by clicking here.

While these restrictions are unique to San Diego County, employers in all California counties should continue to monitor changes in the law and consult with legal counsel regarding updates to employer’s obligations in response to the COVID-19 pandemic.  Please contact Thomas E. Daugherty or Klinedinst’s employment team if you have any questions.

About the Author

Thomas E. Daugherty

Thomas E. Daugherty litigates and counsels clients in employment law, professional liability, and commercial litigation. He brings integrity, vigorous advocacy, and a tenacious work ethic to provide unique solutions to each and every client. His demeanor and approachability keep clients coming back for more, when legal needs arise. To contact Mr. Daugherty, please reach him via email or call (619) 239-8131.

Please Note

This article is intended to be for informational purposes only. This information does not constitute legal advice. The law is constantly changing and the information may not be complete or correct depending on the date of the article and your particular legal problem. The use of information from this article does not create any type of attorney-client relationship.

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Los Angeles, Sacramento, San Diego, Irvine, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.

The 2020 edition of San Diego Super Lawyers® has just been released, and a large number of Klinedinst attorneys have been chosen by their peers for inclusion. The lawyers selected truly represent the “best of the best” in San Diego County.

Super Lawyers®

SAN DIEGO, CALIFORNIA – Klinedinst attorneys have been featured in the 2020 San Diego edition of Super Lawyers®. This is the largest-ever number of Klinedinst lawyers that have ever been featured in the annual awards publication.

Every year, Super Lawyers polls lawyers in the region, looking for recommendations of peers that demonstrate excellence and high ethical standards in the legal profession. From that pool of recommendations recommendations, the editors conduct independent research to pare down the list until the “best of the best” in the region are chosen.

Klinedinst attorneys recognized this year in Super Lawyers include:

San Diego Super Lawyers also highlights up-and-comers to watch in a special feature called Rising Stars. The Rising Stars list recognizes no more than 2.5 percent of attorneys in each state. Klinedinst attorneys featured in this year’s class of Rising Stars include:

According to the publication, fewer than 5% of attorneys in California are ever featured in Super Lawyers.

John Klinedinst was singled out as Top 50 San Diego Lawyers for the entire region.

“It is incredibly gratifying to know so many of our stellar attorneys have been nominated by their colleagues for inclusion in Super Lawyers,” said Klinedinst, who founded the firm in 1983. “Everyone listed is a legal all-star in their own right, and am truly proud of the record number of award-winning attorneys on our team.”

Klinedinst congratulates each of these shareholders for this special honor. To learn more about each, please visit:

www.klinedinstlaw.com/profiles/

For more information on the full list of attorneys to be featured by Super Lawyers, please visit www.klinedinstlaw.com/super-lawyers

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Los Angeles, Sacramento, San Diego, Santa Ana, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.

The following analysis is provided by Klinedinst Shareholder Ian Rambarran, Chairman of the California MBA Legal Issues Committee.

The financial services industry is part of the critical infrastructure of California and of the country. Governor Newsom articulated the importance of the financial services industry in the guidance he provided on March 20, 2020, which came shortly after the shelter-in-place order became effective.

On March 28, the Department of Homeland Security’s Cybersecurity and Infrastructure Agency (CISA) released additional guidance on the potential impact the financial services industry could have.

CISA’s guidance also designates the industry as part of the country’s critical infrastructure and contains more specifics than Governor Newsom’s order. CISA’s guidance contemplates work performed by the servicing industry as it recognizes workers may be needed for both “consumer and commercial lending” and for supporting “financial operations and staffing call centers.” Those parts of the operations are becoming increasingly important as borrowers begin to experience the economic realities of COVID-19 related restrictions and when they need guidance. These effects will be imminently seen, especially as unemployment claims rise at astronomical rates.

The servicing industry in particular is being called on to voluntarily support the financial systems in a way not seen since the 2008 financial crisis. Regulators are anticipating hardships related to imminent defaults caused by drop of income due to COVID-19. For example, the Department of Business and Oversight (“DBO”) reported that the State of California has reached agreements with national banks, credit unions and loan servicers to considering borrowers for loss mitigation options. The DBO states that numerous participating lenders and servicers have agreed to:

  • 90-day grace period for all mortgage payments
  • Relief from fees and charges for 90 days
  • No new foreclosures for 60 days
  • No credit score changes for accessing relief

While almost all lenders and servicers have clear systems in place that stem from compliance with legislation like the Homeowner Bill of Rights and regulations prescribed by the Consumer Financial Protection Bureau, it is of critical importance that those systems are re-tooled to fit within this unprecedented pandemic.

As previously recommended, lenders and servicers should stay ahead of this crisis by starting COVID-19 specific loss mitigation plans and informing borrowers about options for relief. A protocol for handling these issues will be important as new requests for relief flood in and as regulators further engage the lending and servicing industry to pivot.

Please Note

This article is intended to be for informational purposes only. This information does not constitute legal advice. The law is constantly changing and the information may not be complete or correct depending on the date of the article and your particular legal problem. The use of information from this article does not create any type of attorney-client relationship.

About the Author

Photo of Ian A. Rambarran
Ian A. Rambarran

Ian A. Rambarran works with the firm’s corporate clients, focusing primarily on business, financial services, employment, intellectual property, real estate, transportation, and construction issues. A graduate of the University of the Pacific, McGeorge School of Law, Mr. Rambarran currently serves as Chairman of the California MBA Legal Issues Committee. He frequently counsels and represents clients in business and commercial disputes, and represents lenders and financial institutions in disputes throughout California. Mr. Rambarran can be reached at irambarran@klinedinstlaw.com.

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Los Angeles, Sacramento, San Diego, Irvine, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.

The following analysis is provided by Klinedinst Shareholder Ian Rambarran, Chairman of the California MBA Legal Issues Committee.

California lawmakers grappling with the effects of COVID-19 are issuing guidance and changing the rules on a frequent, sometimes daily, basis. Requirements on the residential unlawful detainer front have changed again. 

On March 27, 2020, Governor Newsom refined, and to a certain extent superseded, his March 16th order affecting residential evictions in California. In Executive Order N-30-27, Governor Newsom harmonized the patchwork of responses from various counties after his prior order suggested restrictions on residential evictions spurred by problems related to COVID-19. 

Executive Order N-30-27 focuses on two parts of the eviction process – the filing of the lawsuit and the actual eviction by the Sheriff. 

First, the Order extends the timeline for a tenant to respond to an eviction complaint from five days to 60 days, if the reason for the eviction is nonpayment because of issues related to COVID-19 and the tenant satisfies all of the following: 

a. Prior to the date of the Order, the tenant paid rent to the landlord pursuant to an agreement; 

b. Before the time rent is due, or no more than seven days after the due date, the tenant notifies the landlord that there will be a delay in payment or nonpayment due to reasons related to COVID-19. For example, COVID-19 reasons for default may stem from: 

  • sickness of the tenant or care of a household or family member with confirmed COVID-19; 
  • layoffs, employment hour reductions, the state of emergency or related government response to COVID-19; 
  • childcare issues because of school closures related to COVID-19. 

c. The tenant verifiably documents the hardship by providing termination notices, payroll checks, pay stubs, bank statements, medical bills, and the like. The tenant can wait to provide this documentation to the landlord, but the tenant should do so no later than the time of payment of the back-due rent. 

Second, the Order restricts the enforcement of a Writ of Possession while the Order is in effect and the tenant has satisfied the aforementioned requirements. Put another way, the Sheriff will not make arrangements to perform a lockout. 

Tenants do not get a free ride, however. The Order makes it expressly clear that the tenant will be required to make back rent payments and that the Order does not apply if the tenant can make rental payments. Further, the Order will only remain in effect until May 31, 2020. 

It is important to note that Executive Order N-30-27 does not affect commercial evictions. However, there may be restrictions on the commercial eviction front by way of local government action or some order in the future. For example, the Sacramento City Council passed temporary protections on March 25, 2020 to prevent commercial tenants from being evicted if the hardship stemmed from lack of patrons due to the state’s shelter-in-place order. To the extent there are problems in the commercial eviction space, a proactive dialogue between the landlord and commercial tenant is critical for business planning and operations, so it should be done without delay.

Please Note

This article is intended to be for informational purposes only. This information does not constitute legal advice. The law is constantly changing and the information may not be complete or correct depending on the date of the article and your particular legal problem. The use of information from this article does not create any type of attorney-client relationship.

About the Author

Photo of Ian A. Rambarran
Ian A. Rambarran

Ian A. Rambarran works with the firm’s corporate clients, focusing primarily on business, financial services, employment, intellectual property, real estate, transportation, and construction issues. A graduate of the University of the Pacific, McGeorge School of Law, Mr. Rambarran currently serves as Chairman of the California MBA Legal Issues Committee. He frequently counsels and represents clients in business and commercial disputes, and represents lenders and financial institutions in disputes throughout California. Mr. Rambarran can be reached at irambarran@klinedinstlaw.com.

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Los Angeles, Sacramento, San Diego, Irvine, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.

Photo of Ian A. Rambarran
Ian A. Rambarran

The following analysis is provided by Klinedinst Shareholder Ian Rambarran, Chairman of the California MBA Legal Issues Committee, originally published in the CMBA’s Member Alert on March 17, 2020.

On March 16, 2020, Governor Newsom issued Executive Order N-28-20 limiting evictions and foreclosures in California. View the full Executive Order.

Executive Order N-28-20 seeks to reduce potential public health issues related to foreclosures and evictions by keeping people in their homes and to provide hardship relief to people economically disenfranchised by COVID-19.  Though the Order is not entirely precise, there are a few keys points to take away.

1. The Order authorizes local counties and cities to consider actions to halt evictions and foreclosures, if the reason for the default arises from COVID-19 related income issues.

COVID-19 related income issues are those caused by the reduction in compensable hours, layoffs, business income and consumer demand, as well as a lack of available income due to substantial medical expenses.  The Order expressly recognizes that these income issues may have been caused by government imposed restrictions.

2.  The Order requests that financial institutions halt judicial foreclosures and evictions, if the reason for the default arises from COVID-19 related income issues.

Though the effect of COVID-19 restrictions will begin to permeate the market for many borrowers and tenants in the next couple of weeks because of employer payroll cycles, it would be best practice to reach out to borrowers who default to stay ahead of any concerns.  Even basic notices on websites, billing statements, and newsflashes informing borrowers what programs are available would help alleviate some concerns.

3.  The Order asks the Department of Business and Oversight to work with financial institutions to consider alternatives to foreclosures.

At this time, it would be prudent to fine tune loss mitigation action plans to address borrower and DBO concerns before they reach out to you.  For example, imminent default or financial hardship should be strongly considered, forbearance plans with extended payment times or modifications with recapitalized missed payments would be worth considering.

The above directives/suggestions are effective until May 31, 2020; however, it would certainly be prudent to halt all foreclosure and eviction activities for the same time so that the effect of COVID-19 is understood nationally and locally. Indeed, many counties have already instituted moratoriums and President Trump issued similar measures for HUD-based programs.

Maintaining that course of action would support the public policy behind Executive Order N-28-20 and help to ensure public health and safety will be strengthened by keeping people in their homes.  Finally, postponing foreclosure and evictions will be likely viewed as a positive industry contribution to California and its economy.

Please Note

This article is intended to be for informational purposes only. This information does not constitute legal advice. The law is constantly changing and the information may not be complete or correct depending on the date of the article and your particular legal problem. The use of information from this article does not create any type of attorney-client relationship.

About Klinedinst

Klinedinst is the go-to firm for clients looking for litigation, trial experience, transactional representation, and legal counsel.  The firm’s offices in Los Angeles, Sacramento, San Diego, Irvine, and Seattle service the entire West Coast. What sets Klinedinst apart is the relationship our attorneys foster with each and every client. Klinedinst lawyers are indispensable strategic partners to business leaders, helping to achieve business objectives and create proactive solutions to resolve the many legal challenges that businesses are confronted with every day.  Whether vigorously advocating for business clients in court, or guiding business transactions and negotiations, Klinedinst is the trusted legal advisor to have by your side.