Manual California Business and Professions Code 2013

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Other states take this sole-remedy approach.

Industry custom and practice is a reliable guide, and the definition was clarified in a helpful ruling following a Section Distributors are smart and knowledgeable. They know the value of their brands, and they know the industry standard for valuation, as brands frequently change hands.

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Section Moreover, Section At present, in Section Nonsense valuations should have consequences. This approach would help make brand transfers less expensive and painful, while promoting settlement and fair compensation.


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Awarding costs to the prevailing party would further encourage parties to be reasonable. First, the statute should allow the parties to stipulate to a longer payment deadline, and second, the statute should be amended to track industry practice in brand transactions, which always include account information as part of a brand transfer.

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Additionally, the statute is ambiguous about payment obligations pending appeal. While payment is required within ten days, the statute also permits an appeal within ten business days of the service of the arbitration award. Subdivision g provides that if the successor wholesaler fails to make payment within 10 business days, and if no appeal is pending the existing wholesaler may keep its distribution rights.

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Payment should not be due until after the appeal period has lapsed, and if an appeal is filed, no payment should be required until the appeal is fully resolved. Most states grant trial courts limited if any power in reviewing a brand transfer arbitration. In fact, Kentucky, Indiana, and Colorado explicitly prohibit such appeals.

California Code of Civil Procedure section He gratefully acknowledges the assistance of his colleagues Elise Sara and Junyong Huang in preparation of this article. Lori focuses her practice on helping her clients resolve health care-related disputes.

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She has guided medical staffs through difficult situations involving credentialing and privileging issues, handled fair hearings, and represented hospitals in both federal and state lawsuits involving medical staff issues. Lori also has experience in the field of physician contracting and in navigating issues pertaining to health care fraud and abuse laws.


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  • She has represented long-term care facilities, senior care communities, and various health care providers in civil, administrative, and regulatory proceedings involving a wide range of issues, including resident discharges and evictions, federal deficiency and state citation appeals, and licensing actions. Lori's skills in managing and resolving disputes carry over to her work as a medical staff hearing officer and as a mediator.

    Successfully represented medical staffs in fair hearing proceedings involving medical staff members challenging proposed disciplinary actions.

    Business & Professions Code 7028: When is "contracting without a license" a crime?

    Obtained summary judgment in favor of a hospital in a lawsuit filed by physicians adversely impacted by the hospital's award of an exclusive radiology contract to a competing group.