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Recent Seventh Circuit Court of Appeals Sides with Majority Rule that Insurance Adjusters Owe No Duty to Insureds; No Bright-Line Test in California

Claims adjusters owe no duty to their insureds in most jurisdictions. As is often the situation, California is a special case. In the recent decision of Lodholtz v. York Risk Services Group, Inc. 2015 WL 542815 (February 11, 2015)(“Lodholtz”), the Seventh Circuit for the United States Court of Appeals affirmed a judgment of dismissal in favor of the claims adjuster defendant. Applying Indiana law, the Lodholtz Court ruled that the claims adjuster owed no legal duty to its insured for its allegedly negligent handling of the underlying state court action. The Court concluded that “an adjuster is an agent of the insurer and therefore has no direct relationship with the insured.” (Citing Troxell v. American States Insurance Co. (1992) 596 N.E.2d 921, 925 n. 1.)
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You Can Be Paid to Sleep on the Job

Jennifer Riso

The Supreme Court of California recently clarified an employer’s duty to pay employees during “on-call” hours. [Mendiola, et al. v. CPS Security Solutions, Inc., et. al. Los Angeles County Superior Court, S212704.]
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Ericksen Arbuthnot Achieves Dismissal for Client in Securities Litigation

Von Reyes
Nathaniel Lucey

Ericksen Arbuthnot attorneys obtained a dismissal with prejudice on behalf of their client in a real estate/securities case filed in Santa Clara County. In the case of Castellanos v. Sun 1031 Exchange, plaintiffs sued multiple defendants, including Ericksen Arbuthnot’s client, a real estate agent, over a sale of ownership interests in an office building in Illinois.
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Jason Mauck

“Do I have to allow an existing tenant to get a roommate? What if it is a studio apartment and he wants to get two roommates? Also, can I require applicants to pay an application fee and screen them?”

These are some very common and reasonable questions for any landlord. Since they are so distinct, I’ll break them down by topic.
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