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.