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Contractual Jury Waivers: New Case Before California Supreme Court Presents a Challenge
A closely watched case now before the California Supreme Court will impact the way equipment lessors do business. In Grafton Partners L.P. v. Superior Court, 9 Cal.Rptr.3d 511 (2004), the California Court of Appeal held that predispute contractual jury waivers are unenforceable under the California Constitution. The case has been accepted for review by the California Supreme Court, and a decision is expected next year.
If upheld, Grafton will call into question the long-standing practice of including jury trial waivers in equipment leases and commercial finance agreements. The outcome of the Grafton case is thus important to equipment lessors not only in California, but across the country. If Grafton is affirmed and predispute contractual jury waivers are invalidated, equipment lessors could face adverse consequences including:
- Increased litigation costs;
- Increases in the time necessary to resolve disputes;
- Increased uncertainty due to the fact that jurors may be unsophisticated and unfamiliar with complex financial transactions; and
- The potential of adverse results due to possible jury bias in favor of lessees and borrowers.
The outcome in Grafton will thus affect not only the manner in which lessors draft their leasing agreements, but the way in which disputes are resolved in the courts. If the California Supreme Court upholds Grafton, lessors will be confronted with increased costs and uncertainty as to their ability to collect from defaulting lessees.
Grafton v Superior Court
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?