Law Office of Henry B. LaTorraca Civil Trial Attorney

June 2015 Archives

Olive Garden parent uses REIT to pay down debt

Dining establishments operated by Darden Restaurants are a familiar sight in California, and the Orlando-based company has built a valuable real estate portfolio including its Olive Garden, Longhorn Steakhouse and Bahama Breeze locations. The company announced on June 23 that it hopes to pay off about $1 billion in debt by transferring 430 restaurants to a real estate investment trust. Most of these restaurants will then be leased back.

ADP cuts off access to Zenefits clients over security issues

Many California businesses rely on payroll and accounting services provided by ADP. The information gathered to provide these services is often sensitive, and the use of this data has led to a dispute between ADP and the startup human resources company Zenefits. The services provided by Zenefits sometimes use data such as Social Security numbers and banking information, but concerns over the way that this information is collected led to ADP cutting off their payroll service to companies that use Zenefits on June 4.

Forum selection clauses in California

Many contracts include clauses that specify which state's laws will be used to resolve any disputes between the parties and names the courts that will hear such disputes. These clauses, which are known as forum selection and choice of law clauses, have generally been upheld in California, but the courts may refuse to defer to another forum in situations where the rights of California residents would be significantly impacted by doing so.

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