The California Supreme Court acted today on the Davis v. Fresno USD lease-leaseback case, as follows:

• The Court denied the petitions to review the Davis case; and
• The Court denied the requests to de-publish the Davis case.

The import of this action is that the Davis case remains good law.  See our prior reports on the case linked here regarding lease-leaseback agreements and conflict prohibitions.  We will have a further analysis of this important development in the days to come.

In related news, AB 975, a bill aimed at protecting school construction contractors from disgorgement of payments if their “lease-leaseback” agreements are voided by a court, and appears very unlikely to be acted on this session.

If you have any questions, please contact a DWK attorney.