California has made subtle changes to that Cal Civ Code section we all know and love. Be sure the language you include in your settlement agreement cites the new language.
Effective January 1, 2019, Section 1542 now reads:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
The Passing the Gavel ceremony yesterday at the 9th Circuit Court of Appeals in Pasadena was pretty fun. I think it’s the fourth one I’ve been to now. Outgoing Chief Judge Sheri Bluebond passed two gavels, one really large and one more ornate, to incoming Chief Judge Maureen Tighe before a huge throng of well-wishers and admirers. Talk about hitting the ground running, the government shut down about the time Judge Tighe’s four year term began. Judge Tighe told us she discovered quickly that there is no manual on how to deal with that. So she met with the Chief District Court Judge Virginia Phillips, and the 9th Circuit staff, Cathy Campbell of course and others to try to figure out what to do. She was determined to make sure the courts remained accessible to those who needed them which is what happened. I say without exaggeration that if it came to a vote among bankruptcy lawyers today about who is the best judge in the Central District it would be Maureen Tighe. She has the perfect blend of patience and firmness. She has huge empathy for the parties, especially the little guy, along with the decisiveness the parties need from a judge. Congratulations Judge Tighe.
