Scherer Smith & Kenny LLP serves mid-sized and fast-growing entrepreneurial companies.  From complex litigation to business, real estate, intellectual property and employment law, our team brings strategic thinking, pragmatism and intense dedication to our clients’ success.

Partner Notes

By Heather G. Sapp

As we move into a new quarter, I have found myself reflecting on how important it is to stay grounded, centered, and purposeful in the work we do every day. The pace of our profession rarely slows, and the transition between working remotely and being in the office has only highlighted how meaningful it is to connect in person. Each time I have the opportunity to meet with clients face to face, I am reminded how much I value the relationships we have built and the trust you place in us. Those moments continue to reinforce the purpose behind our work and the importance of staying engaged and present.

Scherer Smith & Kenny LLP Elevates John B. Lough, Jr. to Partner

Scherer Smith & Kenny LLP is pleased to announce the well-deserved elevation of John B. Lough, Jr. to Partner, effective March 1.

John has been an integral part of our firm for many years, most recently serving as Senior Counsel. His practice focuses on employment litigation and counseling, representing both employers and individuals in complex employment matters.

John is also widely respected for his leadership within the legal community. He served as President of the Asian American Bar Association of the Greater Bay Area in 2024 and was appointed in January 2025 to the Board of Directors of the California Asian Pacific American Bar Association. He has also served for many years on the Bar Association of San Francisco’s Solo and Small Firm Section Executive Committee.

John’s elevation reflects his outstanding legal ability, leadership, and dedication to our clients. We are proud to welcome him to the partnership.

Passing Along Credit Card Fees in California: What Professional Service Firms Need to Know

Professional service firms, such as accountants, designers, consultants, and similar businesses, often face credit card processing fees of 2–4% when their clients pay invoices by credit card. Historically, California law discouraged adding those costs as a separate “credit card surcharge,” leading many firms to absorb the fees or reframe them as cash discounts. The legal landscape shifted again in 2024 with California’s new “Honest Pricing Law” (also referred to as the Hidden Fees Statute, Junk Fees Law, or Transparency Pricing Statute), raising new questions about what is now permitted.

Professional service firms face a particular challenge because they often cannot quote a final price upfront. Much of their work is billed hourly, making the total cost unknown at the outset, unlike a consumer purchasing a dining room table or an airline ticket.

Conducting Workplace Investigations

A workplace investigation is conducted when there is credible information that there may have been significant wrongdoing, misconduct, or ethical lapses. A workplace investigation may also be appropriate even if there have not been specific allegations against an employee or department, but there have been allegations against others, and the investigation is intended to exclude the possibility that wrongdoing occurred within the organization.

In California, workplace investigations must be conducted by qualified individuals to ensure legal compliance. Qualified individuals include internal Human Resources professionals, in-house counsel, licensed private investigators, and other qualified individuals working under the direction of or by, outside attorneys.

Delaware Corporate Law Updates

The State of Delaware has enacted significant amendments to the Delaware General Corporation Law (“DGCL”) over the past two legislative sessions. These changes make it easier for companies to manage their businesses, work with major investors, and complete transactions without getting tripped up by technical legal issues. These changes were passed after several court decisions created uncertainty around everyday corporate and deal practices. Delaware acted quickly to bring the law back in line with how companies actually operate.