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The California Supreme Court has been busy in 2024, issuing several rulings that have significant implications for businesses. From the state’s Private Attorneys General Act to COVID-19 business losses and contract disputes, these decisions are critical for business owners to understand. Below is a roundup of some of the most impactful rulings so far this year. 
Rattagan v. Uber Technologies, Inc.
In a major decision, the California Supreme Court clarified that businesses can face fraudulent concealment claims even in contractual relationships. This ruling has far-reaching consequences for companies with complex contracts, as it opens the door for lawsuits when one party conceals critical information from the other. Business owners should review their contracts closely to ensure they’re transparent and avoid potential litigation.
John’s Grill v. Hartford Financial Services
A San Francisco restaurant’s attempt to claim COVID-related losses under its insurance policy was denied. The court ruled that such losses were not covered under a specific virus-related policy clause. This decision underscores the importance of business owners reviewing their insurance policies carefully, especially in light of potential future disruptions.
Another Planet Entertainment v. Vigilant Insurance Co.
The court reinforced the position that COVID-19 does not constitute “direct physical loss or damage to property” for insurance claims. Businesses with similar coverage disputes should take note of this decision and consider revisiting their policies to ensure adequate protection against unexpected events.
Quach v. California Commerce Club, Inc.
In another pivotal ruling, the court brought California law in line with a U.S. Supreme Court decision regarding arbitration agreements. Previously, California required an arbitration-specific prejudice rule. Now, arbitration agreements will be treated like any other contract, leveling the playing field for businesses involved in arbitration disputes.
Castellanos v. State of California
In a ruling that impacts the gig economy, the court upheld Proposition 22, which allows companies like Uber and DoorDash to classify drivers as independent contractors rather than employees. This decision provides much-needed clarity for businesses relying on freelance or gig workers. Companies should ensure they comply with all aspects of Prop 22 to avoid legal pitfalls.
What This Means for Business Owners
These rulings are crucial for business owners, especially those operating in industries affected by COVID-19, contract disputes, or the gig economy. As laws evolve, it is essential to stay informed and take proactive steps to protect your business. Regular legal audits of contracts, insurance policies, and employee classifications can prevent costly litigation down the line.
Stay Ahead of Legal Challenges
The California Supreme Court’s rulings emphasize the importance of understanding legal risks and preparing for future challenges. If your business could be impacted by these decisions, now is the time to seek expert legal advice.
Don’t wait until legal issues arise—schedule an appointment with our business litigation team today. We’ll help you navigate the evolving legal landscape and ensure your business is protected.
