When advertising a new product, one of the toughest jobs of a marketer is to make the product stand out from the crowd. The line between hype and truthful advertising can be a thin one.
According to the Federal Trade Commission, it was a line crossed by a Manhattan Beach, California shoe company, and the resulting business litigation requires it to pay a $40 million settlement based on charges of deceptive trade practices.
People enter into contracts every day for a variety of reasons, from real estate purchases to business operating agreements. In so doing they agree to be committed to the terms outlined in the contract. Unfortunately, sometimes things go awry.
That is the case in a recent contract dispute between Katalyst Media, a production company owned by actor Ashton Kutcher, and the California Department of Motor Vehicles.
In clothing retail, when large companies like Forever 21 order a product, it's possible for the retailer to cancel the order if the product isn't selling well. In other words, some clothing is produced, but it will no longer go to its originally intended destination. Discount stores can purchase the clothing and sell it; that is, if certain steps are taken to remove the clothing labels and prevent trademark infringement.
Forever 21 is suing a number of Los Angeles businesses for trademark infringement, unfair competition, trademark dilution and false designation of origin. The retailer wants at least $3 million in compensation for what it claims was a failure to get permission to sell the marked-down items.
Some of the legal heat might be taken off of small-business owners in California who cook and serve plant-related foods such as alcohol, asparagus, coffee and potatoes. California's Proposition 65, which was passed in the mid-1980s, requires businesses to post signage if they serve foods that contain any of the 800 chemicals listed in the proposition. But a new state bill is meant to curb the burgeoning litigation that has resulted from the signage requirement.
More than 24 restaurants throughout Southern California have been faced with the possibility of a Prop. 65 lawsuit. The proposition was designed to create transparency between food service providers and customers, but critics say that people are taking advantage of sign violations and squeezing small businesses for settlement money.
Prospect Park has filed a suit against ABC. Prospect Park is suing the television network for breach of contract because Prospect park permitted ABC to borrow characters from "One Life to Live" for a specific period; however, ABC purportedly took advantage of the characters, working outside the parameters of the companies' agreement.
Specifically, the show created comprehensive storylines and killed off two critical characters in "All My Children." For example, the television network had two primary characters drive off a cliff. ABC was supposed to go over storylines with the production company and receive approval for dramatic storyline moves.
Now that the economy is showing signs of recovery, things are shaking up in the commercial real estate market in downtown Los Angeles. The big news is that Brookfield Office Properties Inc. is willing to shell out $430 million for four major skyscrapers, and the deal, if ratified by shareholders in MPG Office Trust Inc., would make Brookfield a controlling player in the downtown financial district.
The deal means that Brookfield would own a total of 8.3 million square feet in office properties in downtown Los Angeles. The office developer already owns three other buildings in the area.
The U.S. economy's 2013 turnaround has brought back some once-lost opportunities for buyers and sellers of commercial real estate in Southern California. In Riverside and San Bernardino counties, for instance, commercial vacancies came to 5.84 percent in the first quarter of this year. That drop is quite significant when we consider that in 2009 about a fifth of East Valley properties used for manufacturing and distribution were vacant.
The market became stable in 2012, and improvement is expected to continue throughout this year.
There was the possibility that a business dispute between J.C. Penney Co., Macy's Inc. and Martha Stewart Living Omnimedia Inc. might get resolved during a month of court-recommended mediation, but alas, not so. The parties are back in court, and testimony is underway in a non-jury trial.
The companies are fighting over which department store has the rights to purvey Martha Stewart's line of home products. When it became known that J.C. Penney had plans of selling Martha Stewart merchandise, Macy's named J.C. Penney and Stewart's company in a lawsuit, pointing to a contract that apparently gives Macy's exclusive rights to sell the Stewart line.
A business tort dispute related to what were believed to be kosher meat products is unfolding in Los Angeles. The Doheny Glatt Kosher Meat Market in Century City has been accused of selling products that were not approved by a mashgiach assigned to inspect and supervise meat sales, though such inspection is necessary for a product to be certified as glatt kosher.
In particular, the plaintiff has called for other parties to come forward and create a class-action lawsuit. The lawsuit alleges that the market owner inflicted emotional distress by breach of contract and fraud.
There are definitely risks attached to real estate investment in Los Angeles. Maybe a broker fails to properly investigate the property, or a seller fails to disclose defects or other problems. Maybe one party doesn't carry out the purchase agreement or in some other way breaches a real estate contract. Without solid legal support, buyers and sellers alike could face significant damages.
Still, it's undeniable that the possible gains of investing in commercial or residential real estate make the prospect extremely attractive, especially now that the market has shown signs of a turnaround.
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Jerry L. Freedman,
A Professional Corporation
16055 Ventura Boulevard,
Suite 540
Encino, CA 91436
Phone: 818-646-6412
Toll Free: 800-430-0837
Fax: 818-784-4968
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