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underwood-partition-spousal-property-third-parties-300x300Family Code section 2021 provides that a court “may order that a person who claims an interest in the proceeding be joined as a party” to nullity, dissolution, and legal separation proceedings. (Fam.C. § 2021(a).) An interested third party may wish to join a family law proceeding, or an existing party may want to join the interested individual. An existing party may request that the court join the third party if the third party possesses or claims to own property that the court has jurisdiction over in the proceeding. (Cal. Rules of Court 5.24(c)(1).) Additionally, a third party may request to be joined if they have been served a temporary restraining order that affects their ability to use property they possess or claim to own. 

When will courts order joinder in Family Law?

When a claimant has a property interest at stake and is requested to be joined, the court has the discretion to decide whether the claimant will be joined as a party. (Schnabel v. Superior Court (1994) 30 Cal.App.4th 758, 762-63.) In other words, the court is allowed to deny a request for joinder even if the individual seeking it has a legitimate interest in the proceeding. This is called a “permissive” joinder. Joinders are mandatory only when the party sought to be joined has or claims physical custody or visitation of a minor child involved in the family law proceeding. (Cal. Rules of Court 5.24(e)(1).)

underwood-guide-independent-administration-estate-300x300The Probate process can be intimidating and confusing. In addition to having to deal with the death of a loved one, adding the resolution of legal and real estate issues on top of everything else can feel like a lot. 

Recently, the Legislature changed the law to attempt to make things smoother, and easier on the heirs of estates by passing a law known as the Independent Administration of Estates Act (“IAEA”). The purpose of this guide is to provide an introduction to that law, and share information that will be helpful to those attempting to navigate estate issues. 

What is the Independent Administration of Estates Act

underwood-primer-corporate-transparency-300x300The Corporate Transparency Act of 2020 (the “CTA”) is a Federal law set to go into effect on January 1, 2024. It forces certain members of businesses (those who formed them and those who own large portions of the entity) to report sensitive information to the Federal Government. 

Congress’ justification is that more than two million corporations and LLCs are formed in the United States each year. Yet, most or all of the States do not require information about the beneficial owners of the corporations and LLCs. 

This allows bad actors to conceal their identities while using their entities to facilitate illegal activity, including money laundering and the financing of terrorism. The CTA seeks to shine a light on these bad actors, thereby protecting interstate commerce and protecting vital national security interests. (P.L. 116-283, Div F, Title LXIV, § 6402, 134 Stat. 4604.) 

underwood-law-com-recognizes-partition-firm-300x300Underwood Law Firm is a finalist for the California Legal Awards’ Vanguard Award.

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Underwood Law Firm is a finalist for the California Legal Awards’ Vanguard Award, honoring firms and companies that have revolutionized their business to stay one step ahead of the current and future forces shaping the legal industry.

underwood-llc-buyout-procedure-300x300The statutory LLC buyout is a special remedy designed for lawsuits seeking to dissolve LLCs. After members of the entity sue to dissolve the business, the other members (all of them or some of them) have the statutory ability to avoid dissolution by buying out the membership interests of these “moving parties.” 

However, problems can arise, especially when it comes to setting the buyout value. Additionally, there are some situations where the buyout can actually be terminated altogether. At Underwood Law Firm, our attorneys are knowledgeable in the fields of pass-through entities and real property. If you’re looking to proceed with dissolution, then we may be able to help. 

When Can an LLC Buyout Occur?

underwood-corporate-llc-buyout-300x300When business entities become subject to internal dissension, it’s not uncommon for several members to approach the court system and seek to dissolve the entity. Often, this is in the best interest of all involved. 

Sometimes, however, the other members, shareholders, or partners, do not want to let the business go. They feel it can continue to operate. As such, they may invoke a special mandatory buyout to keep the business running. The buyout allows those who want the business to continue to purchase the interests or stocks of those who wish to leave. 

For LLCs and Partnerships, the buyout price is determined by the same standard: Fair Market Value. Corporations, on the other hand, conduct buyouts based on “Fair Value.” While this difference may seem minimal, they are ultimately quite different from each other.  

underwood-2024-updates-civil-discovery-300x300In almost all civil litigation in California, a major issue is the formal process of exchanging information and documents that address claims or defenses in dispute between the parties. In this system, discovery is “self-executing.” That means that no party to the lawsuit has any obligation to provide any information, unless requested through the formal methods outlined in the Civil Discovery Act. 

That is all potentially about to change. In 2024, next month, Code of Civil Procedure section 2016.090 will take effect. Recently, Governor Newsom signed Senate Bill 235 that amends two sections of the Code of Civil Procedure so that discovery in State Court becomes more like discovery in Federal Court. These experimental provisions, however, are set to last until January 1, 2027. (CCP § 2016.090(e).) 

The New Requirements

underwood-title-insurance-real-estate-litigation-300x300Before undertaking litigation over real estate in California, title insurance can help to provide clarity as to important ownership questions. Title insurance is not just nice to have, in many instances, the law specifically envisions that the parties will obtain a title report of some type. For example, the Partition Law specifically envisions that the plaintiff will obtain a title report before filing the suit in Code of Civil Procedure section 872.220.

While a title report may be beneficial, a careful partition lawyer will consider going a step further and obtaining some sort of title insurance in order to adequately address any issues that could arise during the lawsuit. Because there are a number of types of insurance that could be obtained, this article will discuss the different options of title insurance available as part of real estate litigation. 

What is Title Insurance? 

underwood-depositing-money-court-300x300Under certain special circumstances, money can be deposited with the court to safeguard during lawsuits under Code of Civil Procedure sections 572 and 573. The justification for such a rule is that, if the court doesn’t protect the money, the other party may spend it, rendering a plaintiff’s victory somewhat hollow. 

However, there are several important limitations in place in order for parties to actually utilize section 572. Chief among them is that the money needs to be “the subject of the litigation.” And even if the money does fall into this category, the Court cannot receive the funds until it is proven that the money is being held wrongfully. 

What is a money deposit with the Court?

What if parties do not appear in a lawsuit requesting partition in kind under the Partition of Real Property Act?

underwood-partition-real-property-guide-part-5-300x300Just as there are special provisions for defaulting parties with partitions by sale, so too are there unique rules where some defendants fail to appear in a partition in kind action. 

The text of the statute provides that, “if the court orders a partition in kind, the court shall allocate to the cotenants that are unknown, unlocatable, or the subject of a default judgment… a part of the property representing the combined interests of these cotenants as determined by the court.” (CCP § 874.318 (d).) 

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