Daily Commerce

GUEST COLUMNS

Is brainless use of AI turning attorneys' brains to mush?

An MIT study shows that reliance on AI alone reduces cognitive function, but AI plus brainpower yields superior results

AI misuse and the 'snitch rule' in legal ethics

Attorneys increasingly use AI tools in their practice, but misuse of AI -- such as submitting fabricated case citations -- can trigger a reporting obligation under California Rule of Professional Conduct 8.3.

Uninsured drivers beware, the law isn't on your side

California raised its minimum auto insurance limits in January 2025 for the first time in over 50 years, with another increase set for 2035 -- a shift that underscores the financial and legal risks for uninsured drivers seeking noneconomic damages.

Can plaintiffs avoid IRS Forms 1099 on legal settlements?

A single IRS Form 1099 can trigger a mess for plaintiffs--especially when the form is misapplied or duplicative--making it critical to address tax reporting explicitly in settlement agreements.

From porn to parental controls, age checks appear here to stay

Supreme Court's blessing of Texas Age Verification Law bodes well for California's Digital Age Assurance Act.

California's tough exemption tests go beyond job titles

Misclassifying California employees as exempt can trigger steep penalties and litigation, making it essential for employers to meet the state's strict exemption standards with rigorous documentation and legal counsel.

How politics are quietly rewriting your employee handbook

California employers are scrambling to balance state requirements with new federal directives that impact everything from immigration to gender issues. Here's what you need to know.

AI can learn, but not loot: Pirated data off-limits for LLM training

Court holds that Anthropic's training of AI using legally obtained books is fair use, but storage of pirated books is not.

Texas stakes its claim as new home for business courts

With companies increasingly eyeing Nevada and Texas over Delaware, Texas's new Business Court offers a timely, if still untested, alternative to the Court of Chancery's seasoned dominance.

Is that homeless encampment a dangerous condition?

An unpublished appeals court ruling in a machete attack case clarifies the steep hurdles plaintiffs face when suing public entities over dangerous conditions involving third-party conduct.

Dupe culture on trial: Lululemon, Costco, and the future of trademark law

In an era where TikTok hauls and hashtag trends blur the line between homage and infringement, Lululemon's lawsuit against Costco spotlights how the law is scrambling to keep pace with the viral rise of "dupes" -- and the high-stakes battle over brand identity, consumer confusion, and what it really means to copy.

California cannot sacrifice public safety in pursuit of renewable energy

California's push for renewable energy is vital, but without strict oversight and meaningful safety standards for massive battery storage facilities, we risk replacing one environmental crisis with another.

Litigation funding dodges tax bullet in Big Beautiful Bill

A controversial excise tax on litigation funding proceeds -- once feared by funders and lawyers alike -- has been left out of the Senate's final tax bill for now, but with strong industry backing and future legislative interest, it may yet return in another form.

9th Circuit navigates the twists and turns of the federal and state False Claims Acts

The 9th Circuit Court upheld that J-M Manufacturing violated federal and state False Claims Acts by falsely claiming its pipes met industry standards despite evidence of non-compliance, but ruled that penalties apply per project--not per pipe--due to lack of proof on specific defective units or exact damages.

What AI learns from us, and why that could be a legal problem

AI is reshaping legal practice--but when left unchecked, its subtle biases in language and logic can expose California attorneys to ethical and legal risks.

Breaking for flexibility: Bradsbery serves employers a win on meal waivers

In Bradsbery v. Vicar Operating, Inc., the California Court of Appeal, in a case of first impression, held that prospective, revocable written waivers of meal periods for shifts between five and six hours are enforceable if not coercive or unconscionable, providing employers with legal clarity and operational flexibility.

What's in the 'Big Beautiful Bill': Bonus depreciation, small biz breaks, SALT cap hike, private school perks

The Senate narrowly passed the sweeping "One Big Beautiful Tax Bill," which includes major changes to small business stock rules, SALT deductions, school choice tax credits, and bonus depreciation -- policies with significant implications for California taxpayers.

Rewriting the river: California's gamble on the Colorado's future

As California fights to protect its century-old water rights while the Colorado River shrinks to dangerous lows, the nation's most populous state finds itself navigating between legal tradition and climate reality, with 40 million people's water supply hanging in the balance.

Legal issues for employers arising out of ICE raids

In June 2025, ICE raids intensified across California as the DOJ escalated immigration enforcement efforts. Employers must understand their rights under federal law and California's AB 450 to avoid criminal liability and respond appropriately to ICE inspections.

Calling names (in briefing)

If Herman Melville didn't need to write "Call me Ishmael ('Ishmael')," then legal writers shouldn't feel compelled to define every party with clunky parentheticals. Clear, consistent naming is better writing and better advocacy.

Business disputes: Know when and how to mediate

Business disputes are costly, complex, and often ruin relationships, but when approached with early communication, strategic mediation, and the right people at the table, resolution can be faster, cheaper and even lead to renewed collaboration.

Anonymous lobbying ads legal under gaps in federal and state law

While campaign ads must disclose who paid for them, lobbying ads -- especially digital ones -- often don't, and usually that's entirely legal.

Litigation funding deals could get uglier under 'Big Beautiful Tax Bill'

Litigation funding, already complex and tax-sensitive, faces a seismic shift under the Senate's pending tax bill, which would impose a sweeping 40.8% excise tax on virtually all litigation financing profits--foreign or domestic--without offsets, exemptions for most existing deals, or regard for how the funding is structured, alarming funders, lawyers, and law firms alike.

I-9 at the front door, state law at the back: California's immigration challenge

With immigration enforcement intensifying in 2025, California employers face renewed federal scrutiny and must balance compliance with both I-9 rules and California's strict worker protection laws.

When the smoke cleared, so did the insurers

Thousands of homeowners are being denied insurance coverage for toxic smoke damage, despite clear health risks and legal protection.

California employment law update: Ghost job ban, 'No Robo Bosses' AI bill, and Know Your Rights Act

As California's 2025 legislative session nears its close, lawmakers are advancing three impactful employment bills--targeting fake job ads, AI-driven management, and employee rights education -- that, if enacted, will reshape workplace transparency and compliance obligations statewide.

Zuch decision sets boundaries for Tax Court jurisdiction

The U.S. Supreme Court's decision in Zuch redefines the boundaries of Tax Court jurisdiction in CDP cases, with potential implications for how collection disputes unfold during litigation.

Senate responds to One Big Beautiful Bill with new rules on opportunity zones

As Congress advances the "One Big Beautiful Tax Bill," proposed Senate reforms signal a long-term, pro-investment future for Opportunity Zones -- expanding eligibility, enhancing tax benefits (especially in rural areas), and tightening reporting requirements, all with the potential to reshape how investors engage in distressed community development.

Of pickleball, pretext and prayer

Could a New Jersey township's plan to condemn a church for pickleball courts eventually become the U.S. Supreme Court case that finally defines what constitutes "pretextual" eminent domain?

Are you conducting business in California? Beware the Golden State's tough stance

If you have California customers sending you money -- even if you've never set foot in the Golden State -- California's tax authorities may come knocking with an income tax bill.

When medical expenses from personal injury become injured property under RICO

A new Supreme Court ruling hints that medical expenses from personal injuries might now open the door to RICO claims -- but don't expect a flood of new lawsuits just yet.

Behind the mask: Why federal agents won't bow to California's SB 627

In the face of escalating violence and political resistance, federal ICE and CBP agents, attacked by rioters and left without timely local support in Los Angeles, now confront a controversial California SB 627 that's seeking to unmask them.

The Constitution is quiet while the missiles fly

As tensions escalate between Israel and Iran, the United States faces renewed pressure to weigh military involvement -- raising urgent constitutional questions about who holds the power to declare war and whether recent presidents have sidelined Congress in one of the nation's gravest decisions.

Banking on neutrality: Rising tensions and the new risks of debanking

As accusations of politically motivated "debanking" grow louder, from religious groups to crypto firms, regulators and courts are stepping in, urging banks to adopt viewpoint-neutral policies that protect both financial access and First Amendment principles.

Will California's pursuit immunity protect public safety or set dangerous precedents?

California's Vehicle Code section 17004.7 provides public entities with immunity from liability in pursuit-related crashes if they adopt and regularly train officers on pursuit policies, but ongoing litigation, including the case Gilliland v. City of Pleasanton, could significantly impact the scope of that immunity.

Georgia court tosses AI defamation suit against OpenAI in first-of-its-kind ruling

A Georgia court's dismissal of the first AI hallucination defamation suit underscores just how early -- and unsettled -- the legal questions remain around generative AI's liability.

Kids are dying and it's time to hold big tech accountable

Devastated parents and bipartisan leaders are calling for urgent reform of Section 230, as Big Tech continues to hide behind the outdated law while their platforms target, addict, and endanger kids -- with deadly consequences.

Everything old is new again as voracious GenAI systems turn to 600-year-old texts for training

Generative AI platforms are turning to centuries-old public domain documents to train their systems and sidestep billion-dollar legal battles over the use of protected works.

Roots and routes: Untangling tree-fall cases from trail immunity

Public entities often invoke trail immunity in tree-fall cases, but Toeppe v. City of San Diego draws a clear line--if the hazardous tree exists independent of the trail, § 831.4 does not apply.

Lead and mercury exposure in firefighters: What to look for and what comes next

As urban fires grow more toxic, firefighters face mounting exposure to dangerous substances like mercury, lead, and carcinogens--risks that are reshaping legal protections, expanding the scope of workers' compensation, and highlighting the need for better exposure documentation and civil remedies when misrepresentation or third-party misconduct is involved.

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