Healthcare and the Law, 2010

United States' healthcare has been a hot legal and political topic for years. In 2008, then presidential candidate Barack Obama made healthcare reform a key part of his campaign promise of "change we can believe in." The legislation took many months of Congressional debates, not to mention it requiring the Forty-Fourth U.S. President to spend the past 18 days traveling and campaigning for votes. However, President Obama may soon realize his campaign promise.

On Sunday, March 21, 2010, the U.S. House of Representative finally passed the health bill on a close 219-210 vote, over Republicans' unanimous opposition. As the House was in voting session, demonstrators outside the Capitol building were chanting "just vote no." The Congressional Budget Office has commented that this piece of legislation will extend health coverage to 32 million Americans who are uninsured, and will prevent insurance companies from denying coverage to people due to pre-existing medical conditions. President Obama and Vice President Joe Biden watched the House vote from the Roosevelt Room at the White House. When the Bill passed, President Obama telephoned House Speaker Nancy Pelosi to congratulate her. "We did not fear our future," the President commented publicly, "we shaped it."

(Official White House Photo by Pete Souza)

Last month, Anthem Blue Cross (ABC), California's largest for-profit insurance company, announced its intent to raise premiums by as much as thirty-nine percent, effective March 1, 2010. Consumer Watchdog, a consumer advocate group, reacted to this news by filing a class action lawsuit against ABC, on March 1, in the Superior Court of California for the County of Ventura. The lawsuit alleged ABC is forcing the insured into policies with lower coverage at higher costs. Consumer Watchdog has filed a public records request seeking ABC to release its actuarial data underlying the rates. In a February 2010 Congressional hearing, House Democrats accused ABC's parent company of padding its rates beyond the cost increases. The final chapter in this battle is yet to be written. For further news on this matter, run a search on Google.

Robin Mashal is a Los Angeles business attorney, and a partner at the law firm of Hong & Mashal LLP. He can be reached by phone at (310) 286-2000.

Los Angeles Superior Court Judge is Censured for Abusing his Authority

Los Angeles Superior Court judge Brett C. Klein has resigned from his position after the California Commission on Judicial Performance ("CCJP") barred the judge from presiding over any other court cases and from accepting any court-referred assignments. According to the CCJP Decision, the CCJP brought a notice of formal proceeding against Judge Klein on January 14, 2010, for "misconduct constituting an abuse of authority and reflecting embroilment, bias and a failure to be patient, dignified and courteous in his handling of a hearing in a class action lawsuit."

Jacqueline Cohen, et al. vs. Windsor Fashions, Inc., et al., Los Angeles Superior Court, case no. BC 381468, was a class action lawsuit against a women's clothing chain store. The case was assigned to Judge Susan Bryant-Deason. The parties had reached a mediated settlement whereby defendant would issue a $10 gift voucher to each class member, the class representative would be paid $2,500, and the class action counsel would receive $125,000 in attorney's fees. The parties had given notice to the class members, and had subsequently brought a motion for the final approval of the settlement terms. Judge Bryant-Deason had preliminarily approved this settlement, but when Judge Bryant Deason became ill, Judge Klein presided over the final approval hearing of the class action settlement on January 16, 2009.

At the final approval hearing, Judge Klein made certain sarcastic remarks towards Plaintiffs' counsel, and ordered that he would receive a number of gift vouchers from Defendant--a women's clothing retailer--as his legal fees in lieu of the $125,000 in cash that had been preliminarily approved. Judge Klein signed the final approval order and e-mailed it to the parties' attorneys. As well, Judge Klein sent a copy of this order to the Metropolitan News-Enterprise which newspaper published an article about it. Noting Judge Klein's prior conduct, and the way he handled the Windsor Fashions, Inc. case, CCJP issued a censure against Judge Klein pursuant to Article VI, Section 18, Subsection (d) of the California Constitution.

In 1990, Governor George Deukmejian appointed Brett C. Klein to the Los Angeles Municipal Court. In 2000, the California judicial system went through a unification process, during which process Judge Klein was elevated to a Superior Court judge. On November 30, 2009, Judge Klein irrevocably retired from his judicial position, thus ending his nearly two decades at the bench.

The materials for this weblog were gathered from various sources, including Los Angeles Times blog, American Bar Association Journal article, Metropolitan News-Enterprise and WikiMedia. For further information, run a search on Google.

Robin Mashal is a Los Angeles business attorney, and a partner at the law firm of Hong & Mashal LLP. He can be reached by phone at (310) 286-2000.

New California Laws in 2010

With the commencement of year 2010, new laws are taking effect in California. Below is a summary of some of the more notable laws:

AB 9 - Political Reform Act: the law defines what actions by a local government may constitute improper campaign activity.

AB 91 - the new law establishes a pilot program in Los Angeles, Alameda, Sacramento and Tulare counties, for persons convicted of DUI offenses, as a pre-condition to having their driver's license reissued, they must install an Ignition Interlock Device in vehicles owed by the offender.

AB 144 - increases penalty for fraudulent use of disabled parking placards from $100 to $1,000. Now, parking enforcement officers and police officers may issue citations.

AB 166 - the bill establishes a mechanism for owners of abandoned boats to turn them in to the authorities before them become an environmental hazard.

AB 171 - new law governs credit and loans products offered by dental offices.

AB 242 - increases penalties against dog fighting spectators.

AB 260 - aimed at protecting borrowers against abusive mortgage lending practices.

AB 303 - Hospital Seismic Safety Financing: the bill allows hospitals to use local funds and draw federal funds for earthquake safety improvement.

AB 305 - prosecutors can now seek jail sentences for polluters who make false reports concerning offshore oil spills, and the statute of limitation is increased from 1 to 5 years.

AB 329 - Reverse Mortgage Elder Protection Act: the law requires higher counselling for borrowers, including informing borrowers of the risks of using a reverse mortgage.

AB 524 - the law imposes fines ranging from $5,000 to $50,000 on publishers who publish paparazzo photos or audio recordings obtained by engaging in offensive behavior.

AB 962 - gun sellers are required to record sales of ammunitions, and to identify and fingerprint the purchasers of ammunitions.

AB 1046 - Prior California law provided homestead exemptions for bankruptcy filers in the amount of $50,000 for a single person, $75,000 for a married couple, and $150,000 for the disabled or the elderly. New California law increases these amounts to $75,000, $100,000 and $175,000, respectively.

AB 1953 - makes it illegal to sell faucets or replacement parts that contain more than one-quarter of one-percent (0.0025) lead.

SB 572 - designates May 22 in commemoration of the gay rights leader Harvey Milk.

The materials above were gathered from various sources including the Los Angeles Times, the California Highway Patrol, Yubanet and NBC. For more information run a search on Google.

Robin Mashal is a California business attorney, and a partner at the law firm of Hong & Mashal, LLP. He can be reached at (310) 286-2000.

Michael Jackson's estate Generates Large Income while Creditor Claims Continue to Pile

When the world-renowned pop star Michael Jackson died in June 2009, he was in financial trouble and his property Neverland Ranch was facing foreclosure. Since his death, his estate has received substantial amounts of income, while numerous claims have been brought against his estate.

The New York Times has quoted Michael Jackson's former advisors who blame Jackson's spending habits for his financial difficulties. Alvin Malnik remarked "[Michael Jackson] never kept track of what he was spending. He would indiscriminately charter jets. He would buy paintings for $1.5 million. You couldn't do that ever other week and expect your books to balance." Charles Koppelman, another former Jackson advisor, commented "[Michael Jackson] was a fantastic visionary on the business front. He just couldn't deal with his personal finances."

Six months after his death, new claims continue to be brought against the late pop star's estate. Attorneys Thomas Mesreau Jr. and Susan Yu, of the law firm Mesereau & Yu, LLP, have filed a $341,452 claim against Michael Jackson's estate, for amounts owed for the defense of the late pop star in his child molestation case in 2005. The accounting firm of Cannon and Company has filed a creditor's claim seeking $56,582 for services rendered earlier this year. A company called Video & Audio Center has filed a $128,482.77 claim for installing electronic audio and video equipment at the Neverland Ranch. Michael Jackson's probate case is currently pending before the Los Angeles Superior Court as case number BP117321, and a search of the court's online case summary page can show a summary of the case activities.

Although Michael Jackson had to grapple with financial issues prior to his death, his estate appears to be pulling out of the red. Since the pop star's death, there has been a large influx of revenue from his music sales, film deals and merchandising contracts. Commentators project Jackson's estate can generate revenues of $30 Million annually, from his own music sales and from other music rights Jackson had purchased (which is rather low compared to the $55 Million generated by Elvis Presley's estate last year). Some believe the Neverland Ranch may have income potential, much like Elvis Presley's mansion Graceland.

During his life, Michael Jackson frequently engaged in humanitarian activities. The photograph to the right shows the late star with the late President Ronald Reagan and first lady Nancy Reagan at a White House ceremony on May 14, 1984, to launch the campaign against drunk driving.

Robin Mashal is a partner at the law firm of Hong & Mashal LLP. He can be reached at (310) 286-2000.

Can Your Facebook Photos Cost You Your Insurance Benefits?

A 29-year-old Canadian women who was on long-term sick leave from her job, stopped receiving insurance benefit checks after she posted some photographs on her Facebook page. According to the news, Natalie Blanchard who used to work at IBM's Bromont, Quebec office, was diagnosed with major depression and placed on sick leave a year ago. She was receiving monthly sick leave benfits from Manulife.

Soon after Blanchard posted her vacation photos on her Facebook account, she noticed she is no longer receiving her insurance benefit checks. When Blanchard contacted the insurance office, her insurance agent referred to her vacation photos saying she is no longer depressed and should be able to return to work. The photos showed Blanchard having fun at her birthday party, and at a Chippendales bar show.

Thomas Lavin, Blanchard's attorney is threatening legal action against Manulife and IBM, saying Blanchard went on vacation based on her doctor's orders. Lavin complains that the insurance company stopped his client's benefits without proper notice to her, and his client has been constructively terminated from her employment.

The materials for this blog are based on articles in ABC News and The Washington Post. For additional information, run a search on Google.

Robin Mashal is a partner at the law firm of Hong & Mashal LLP. He can be reached at (310) 286-2000.

Is Loan Modification Dead?

It was about two years ago when the U.S. real estate market crashed. The headline news contstantly talked about the increase in unemployment, how people are unable to make their mortgage payments, how the real estate values are dropping, and how most property values are "upside down."

And then came a sigh a relief: the "loan modification experts" who could negotiate with the lenders to reduce the loan principal balances, reduce the mortgage interest rates, or modify the mortgage payoff terms. Suddenly everyone was an expert in loan modification, the lawyers, the real estate brokers ... everyone and their best friend had some expertise in the field.

Well, it seems like the loan modification industry has also turned upside down. For a while now the news talks about government regulation of this industry. Here is a highlight of the news in California:

* On January 22, 2009, Senators Calderon, Corbett and Steinberg introduced Senate Bill 94, proposing to amend several California statutes in response to the urgent mortgage loan problems.

* On July 23, 2009, California Attorney General, Edmund G. Brown Jr. made a news release warning homeowners "to avoid 'shadowy and unscrupulous' loan modification consultants who use aggressive telemarketing tactics and charge thousands of dollars in upfront fees for foreclosure relied." This news release and related materials can be found on Attorney General's web pages entitled "Stop Loan Modification Fraud."

* On September 18, 2009, the State Bar of California made a news release about 16 attorneys who were "under invesitgation for misconduct related to loan modification."

* On October 11, 2009, California Governor Arnold Schwarzenegger signed into law Senate Bill 94 (Calderon) prohibiting any person from demanding of collecting any advance fee, retainer fee or other pre-payment from a consumer for loan modification or mortgage loan forbearance related to a residential unit of 4 units or less. The California Department of Real Estate has placed a Consumer Alert on its web site detailing Senate Bill 94's provisions.

* The November 2009 edition of the California Bar Journal contains an article by Nancy McCarthy entitled More Lawyers in Trouble for Foreclosure Activity. The article recites 3 more California attorneys having resigned the California State Bar, and one California attorney placed on inactive status, "as a result of their misconduct related to their loan modification activities."

Although the law is not putting a complete halt to loan modifications, it will significantly reduce the industry's activities. The few who will remain in the field will be under close scrutiny, but they will be assist those truly in need of their services.

Robin Mashal is a partner at the law firm of Hong & Mashal LLP. He can be reached at (310) 286-2000.

Playboy sues Chicago Lawyer who Had Posed for the Magazine

Playboy magazine has sued Corri Fetman, a Chicago lawyer who had posed nude for Playboy and used to write a Playboy.com advice column titled "Lawyer of Love", report ABA Journal and Chicago Sun Times. Playboy is complaining about Fetman's use of the phrase "Lawyer of Love", and her attempt to register this phrase as a trademark, because Playboy argues Fetman gave up any rights to this mark in her freelance agreement with Playboy.

According to Chicago Tribune, in March 2009 Corri Fetman filed a $5.4 Million sexual harassment lawsuit against Playboy, claiming Fetman lost her writing column with Playboy as a result of her resisting sexual advances by Playboy executive Thomas Hagopian.

Corri D. Fetman is a Chicago divorce lawyer at the law firm of Fetman, Garland & Associates Ltd. Her firm's web site, has a prominent "Playboy Press" page, and as well provides a link to "Love Lawyer Advice Blog" maintained by Ms. Fetman.