Stone Dean Law

As we come to the end of this unprecedented year, we wanted to express our sincerest gratitude for the opportunity to work with you. Your support, resilience, and perseverance are as impressive as they are appreciated. We wish you and your family health, peace, prosperity, and happiness in the coming year. Happy Holidays!

Stone | Dean’s 2020 R.A.V.E. Awards Honor Judy Brown, Alvaro Zambrano and Sue Feffer! 2020 has been a challenge to all businesses and the human toll has been staggering. As an Essential Business, Stone | Dean continued to operate through these dark days to serve the needs of its clientele. Each and every Stone | Dean team member excelled in their contribution, but our team raved about three particular individuals who stood out in the crisis: Staff members Judy Brown, our Staff Supervisor, and Alvaro Zambrano, our Assistant Controller, received numerous nominations and sky-high marks from staff and management alike. This year we also honored senior attorney Sue Feffer, Leader of the Stone | Dean Mentor Program. http://stonedeanlaw.com/our-people/rave-award/

As we approach the Thanksgiving Holiday during this tumultuous year, we would be remiss if we did not express our sincere thanks and appreciation to you, our clients, for your continued support. The COVID pandemic has robbed us of many of the things we previously took for granted face-to-face visits, conferences, meetings, handshakes, lunches, etc However, your understanding, patience, and flexibility has enabled our firm to persevere. Please know how much this means to all of us at Stone|Dean. Now, attend to your preparation, enjoy your families, and make this Thanksgiving special. Eat, drink, and be very merry. Things will get better in 2021!

Here We Grow Again! Stone | Dean is pleased to announce that David Breitburg has joined Stone|Dean in its Woodland Hills, California office. David brings his 35 years experience as a civil litigator to our firm. During his career, he has handled a wide range of cases including major exposure cases, catastrophic injuries and complex personal injury defense and has a long history of successful trials and mediations. He will be a valued member of the Insurance Defense Practic...e Group at Stone | Dean. Mr. Breitburg was educated at the University of Cincinnati where he received a Bachelor of Arts. He received his Juris Doctor at Southwestern School of Law. He is admitted to all California state courts, and is admitted to the Central District of California and Ninth District Court of Appeals. When he is not practicing law, he spends his spare time with his family, including hiking and going to the beach. Welcome Aboard, David.

In light of the passing of Proposition 22 in California, both Uber and Lyft have petitioned the California Court of Appeals for the First Appellate District to reconsider its decision upholding an injunction requiring the ride-hailing companies to classify their drivers as employees. Specifically, the ride share companies have asserted that the California voter approval of Proposition 22 "fundamentally undermines" the reasoning behind the injunction and, as a result, the de...cision last month that upheld it. The prior ruling of the Court of Appeal was based upon its determination that California was likely to prevail at trial against Uber/Lyft under A.B. 5. However, both Uber/Lyft now argue that California can also no longer credibly claim that the injunction is in the public interest since the voters had a direct say on the issue and embraced allowing the drivers to be classified as independent contractors. http://stonedeanlaw.com/proposition-22-ab5-ride-share-comp/

Uber/Lyft/Others Take Impact of AB5 to the Ballot Box - You may have noticed a recent onslaught of television and radio ads regarding Proposition 22, which will appear on California ballots in the upcoming November election. Proposition 22’s stated goal is to exempt ride-sharing and food-delivery companies from the Assembly Bill 5 gig worker law that was passed in September 2019, meaning Uber and Lyft could continue classifying and paying drivers as contractors, not empl...oyees. Uber and Lyft have built their business models around doing so, reserving full-time employee status for corporate roles to keep costs low. Uber, Lyft, Doordash, Postmates, and Instacart have poured a total of $110 million into support for the measure. The businesses supporting this proposition have threatened to cease operations in California if this proposition does not pass. Under Proposition 22, drivers would not be considered full- or part-time employees, with the attendant rights which is one of the factors driving critics to oppose the measure. Drivers and labor advocates have long argued that Uber and Lyft's businesses are harmful to workers because they pay them lower wages and provide fewer benefits, like unemployment and health insurance. The full text of Proposition 22 can be viewed here: https://www.sos.ca.gov//ballot-m/qualified-ballot-measures

Former Full House Star Avoids Lengthy Stay in Big House: Stone|Dean Founder Comments on USC Admission Scandal Sentencing: Gregory E. Stone was called upon by Fox Entertainment News to offer his expert legal analysis of the sentencing provided to former Full House star, Lori Laughlin. Read the article here: https://www.foxnews.com//lori-loughlin-sentence-college-ad

Minor League Baseball Season Cancellation Triggers Insurance Dispute - Two days after the cancellation of the 2020 Minor League Baseball season due to the coronavirus pandemic, 22 teams filed lawsuits against insurance companies over rejections of business interruption claims. The insurers claim that business interruption coverage due to a virus outbreak has been excluded from standard policies, such as these, for quite some time -- and that including it would "make such c...overage unaffordable or even unavailable." The teams, which include the Amarillo Sod Poodles, Augusta GreenJackets, Chattanooga Lookouts, Inland Empire 66ers, and Lancaster JetHawks, contend that such exclusions are "void, unenforceable and inapplicable." The teams also contend that insurers are failing to recognize that being unable to use ballparks due to restrictions on gatherings and lack of access to players (players are normally provided by Major League Baseball, which pays their salaries) constitutes direct physical loss -- and should be covered under the policies. The teams also contend that their "catastrophic losses" were due to a lackluster response to the virus by federal and state governments. While the outcome of these lawsuits is unknown, it is sure to be an extra-inning affair. See more

COVID-19 Waivers Likely Unenforceable Against Employees: No! This is the simple answer to whether businesses should force employees to sign COVID-19 liability waivers before returning to the workplace. Months after our national economy ground to a halt, some parts of the country are returning to work. Some employers have attempted to insulate themselves from tort liability for COVID-19 related infections by requiring waivers as a condition to allowing workers to return.... Many state workers' compensation laws forbid such waivers. In addition, it is likely that such provisions would be deemed unconscionable and unenforceable given the disparity in bargaining power between employers and employees. In essence, the waiver request forces the employee to sign and potentially give up her/his legal recourse or refuse to sign and give up the employee’s job. This issue has yet to be litigated, but we trust that this will change as the legal landscape of COVID-19 related issues unfolds. http://stonedeanlaw.com/covid-19-waivers-likely-unenforcea/ See more

High Court Rules that Civil Rights Act of 1964 Protects Discrimination Against LGBTQ Employees: Earlier today, the Supreme Court declared that the Civil Rights Act of 1964 (CRA) protects LGBTQ employees from workplace discrimination. In what is hailed as a major victory for lesbian, gay, bisexual, transgender and queer workers, the justices said the CRA’s ban on job discrimination on the basis of sex can be read to forbid bias against employees because of their sexual or...ientation or gender identity. Justice Neil M. Gorsuch, appointed by President Trump, wrote the majority opinion that included Chief Justice John G. Roberts Jr. and the court’s liberal justices. The decision surprised many legal pundits who thought that the Court would turn far more conservative on gay rights following the retirement of Justice Anthony M. Kennedy. Today, we must decide whether an employer can fire someone simply for being homosexual or transgender, Gorsuch wrote. The answer is clear. An employer who fires an individual for being homosexual or transgender fires that person for traits or actions it would not have questioned in members of a different sex. Sex plays a necessary and undisguishable role in the decision, exactly what Title VII forbids. While Monday’s decision is a landmark victory for LGBTQ employees, it was based on the court’s legal interpretation of an existing law passed by Congress, not constitutional guarantees, as was the case with several previous rulings on LGBTQ rights. The Trump administration, which has moved aggressively to curtail transgender rights, did not immediately comment about the ruling. Democratic presidential hopeful Joe Biden called the ruling a momentous step forward for our country.

AB5’s Upcoming Impact on WC Coverage: Predictably, and understandably, the news has been dominated by the significant social, health, and economic, challenges facing our Nation. As such, not much attention has been paid to the progression of AB5. As businesses return to their new normal, it is important to revisit this issue. California Assembly Bill 5 (also known as CA AB 5) was signed into law in September 2019. The bill implements a new test all employers must use to... determine if a worker is an employee or an independent contractor under the California Labor Code. The law will have a major impact who must be covered under a businesses’ workers' compensation policy. While the bill is effective January 1, 2020, the part that affects workers' comp coverage goes into effect July 1, 2020. Specifically, as of July 1, 2020 as an employer, you'll be subject to the new test. This means that a worker could be classified as an independent contractor before July 1, 2020 and as an employee after July 1, 2020. If you've employed an independent contractor that can supply you with a certification of workers' compensation insurance that is effective during your policy period, the worker would not be considered part of your employee roster. You would not report payroll on him | her. However, in order to avoid an unexpected change in exposures at time of audit, you must include payroll for all employees defined by the statue as of July 1, 2020. The statute applies to businesses headquartered in California as well as businesses headquartered elsewhere with employees working in California

As certain states and localities allow for certain businesses to reopen, concerns are being raised by business owners on whether opening too early (or at all) will subject them to corona virus related litigation from patrons, employees, and vendors. Attempts to address these concerns are being addressed at the federal level, with efforts to create a statutory coronavirus-related business immunity barring such lawsuits. Efforts for and against such legislation appear to be... split along party lines. On the one hand, companies need assurances that their attempts to jump start the economy won’t result in litigation. On the other hand, concerns have been raised that providing businesses with immunity would eliminate the incentive to take the necessary precautions to prevent community spread of COVID-19. This is only one of a plethora of legal issues generated by the pandemic. We will follow this issue closely and report when events warrant. See more

Business Interrupted: Insurance Considerations in an Infected World. http://stonedeanlaw.com/business-interrupted-insurance-con/

Actions against Insurers Heating: A series of class action lawsuits have been initiated against certain insurers who have denied business interruption claims filed by their insureds. In each case, the businesses - which include bakeries, taverns, restaurants, nightclubs and bridal retailers - allege they paid premiums to the insurance companies for business interruption insurance for situations where they could be forced to close through no fault of their own, but their cl...aims have been denied. In the complaints, the companies allege that their policies are "all risk" policies that entitle them to coverage unless the policies specifically exclude the situation. They also cite "civil authority" clauses that provide coverage when their properties are made inaccessible because of orders from the government such as the Stay at Home orders issued by most state and local governments. While the insurers named in the complaints refused to comment, it is likely that they will assert that the business interruption coverage in each of the policies required and lacked a direct physical loss or damage to a property caused by a covered peril (i.e. fire, water damage, etc.), which is not the case with the COVID-19 pandemic. This issue will be frequently, and hotly, litigated for the months and years to come. Stone | Dean has a dedicated insurance coverage practice group available to review the terms and conditions of your policy. Please contact Kristi Dean and Leslie Blozan at [email protected] to arrange for a review.

The COVID-19 pandemic and Stay at Home orders issued in response have had an immediate and significant impact on the activities of California businesses and individual policyholders. As a result, California Insurance Commissioner Ricardo Lara has noted that projected loss exposures of many insurance policies have become overstated or misclassified and has ordered premium reductions for private passenger automobile insurance, as well as the following lines of business: ...Commercial automobile insurance Workers’ compensation insurance Commercial multiple peril insurance Commercial liability insurance Medical malpractice insurance Any other line of coverage where the measures of risk have become substantially overstated as a result of the pandemic. California insurers have been given one hundred and twenty (120) days to comply with Commissioner Lara’s order. Insurers may comply with the premium refund order by providing a premium credit, reduction, return of premium, or other appropriate premium adjustment to their insureds. The Department of Insurance indicated that further reductions may be in order depending upon the length of the impact of the virus.

In order to continue to prioritize the health and safety of our colleagues, clients, and contacts, Stone | Dean LLP has successfully initiated and implemented a Business Continuity Plan. The Plan requires all attorneys, paralegals, and support staff to work remotely. Where in-office staffing is necessary, strict social distancing is observed and only those personnel needed to ensure the continuity of necessary and critical work functions are scheduled. In other words, Stone | Dean remains open for business and has not skipped a beat due to the planning, cooperation, and hard work of all involved.

Staying Safe and Sane! Since it appears that we are all going to be spending some (i.e., too much) quality time with our family and other home-dwellers, we thought would provide you with list of things to do, and eat, that might make the time pass in a more enjoyable, productive, and informative fashion. Enjoy! http://stonedeanlaw.com/staying-sage-and-sane/

Civil Authority Coverage and the COVID-19 Pandemic: To soften the economic impact of the COVID-19 pandemic, many businesses are assessing their insurance policies whether existing insurance policies may provide some relief. A New Orleans restaurant recently filed the first of a potential flood of lawsuits seeking insurance benefits to cover losses from government-mandated closures due to the novel coronavirus outbreak. At the center of this lawsuit is whether the government...’s order closing the restaurant triggers coverage under the "civil authority" provision of the all-risk property policy for business interruption damages. Like many civil authority provisions, the one at issue in the lawsuit requires that a government restriction stems from a "direct physical loss" or damage to a nearby property for coverage to apply. Coverage for the virus depends upon how the policy defines covered peril. In addition, some policies also have exclusions for losses due to a virus or bacteria. Other commentators note that certain jurisdictions utilize a loss of functionality type test which, if applied to this matter, would lessen the evidentiary burden faced by the restaurant owner. As the name of the test would imply, a policyholder would only need to establish that the virus significantly impacted the functionality of its restaurant for coverage to attach. However, most policies require there be at least 72 hours after the civil authority prohibits access, and there is typically a cap on the coverage being provided. The legal issues raised by the virus will be litigated for many years to come. Business interruption coverage is just one aspect.