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bandit73
March 1st, 2003, 03:31 AM
This is what small Business has been up against in California for years , It's no mystery at all that Dtv has gotten away with the extortion plot of sending letter's through the mail. This seems to be normal practice for the scum bag lawyers.
It's no wonder why lawyers are listed with child molesters and murderer as the scum of the Earth.

Hopefully (if this becomes a law) it will extend to the private sector soon !!

Disclaimer: If you are a lawyer and you are reading this and you are not a "Scum bag" lawyer than please disregard the above opinion.





Lawmakers target statute allowing frivolous suits
BUSINESS: Despite abuses, the attorney general says the law is a valuable consumer safeguard.

BY JIM MILLER
THE PRESS-ENTERPRISE
SACRAMENTO

Several Southern California lawmakers want to close the door on frivolous lawsuits against small businesses, but their proposals so far have found no support from the state's top law-enforcement official.

Attorney General Bill Lockyer sued a Beverly Hills law firm this week, contending that it had slapped thousands of nail salons, repair shops and other small firms with unfair-business-practice lawsuits solely to obtain millions of dollars in out-of-court settlements and legal fees.

Lockyer said the suit against the Trevor Law Group will deter future abuse of the state's unfair-competition law. He calls the law a valuable consumer safeguard and does not believe it should be changed.

Targeting loopholes

Next month, however, legislative committees will consider almost a dozen bills proposed by lawmakers who argue that the current law is full of loopholes that allow so-called shakedown lawsuits.

"That statute was enacted for a good reason, to provide protection for the public," said Assemblyman Bob Dutton, author of one of the proposed measures. "But we've had an abuse of the process, and we need to fix it."

Earlier this month, the Rancho Cucamonga Republican introduced a bill that would tighten the rules on who could file unfair-business-practice suits and require that plaintiffs had suffered harm.

Assemblyman Russ Bogh, R-Cherry Valley, introduced a bill that would prohibit such suits unless there was a pattern of anti-competitive behavior.

Other bills, mostly with Republican authors, would shield businesses with fewer than 50 workers from such lawsuits, require that nearly all the money from private settlements go to the state's crime-victims fund, and ban private lawsuits after state authorities have acted.

`It's ridiculous'

"I think it's ridiculous that a nongovernmental authority can police industry," said Malcolm Smith, the owner of a Riverside motorcycle shop.

Smith, who was sued by the Trevor Law Group last year for running an advertisement that abbreviated "on approved credit" as "OAC," supports changing the law.

The proposed legislation reflects the attention generated by a wave of unfair-business-practice lawsuits that targeted Smith and other small-business owners -- many of them recent immigrants -- in Riverside, San Bernardino and other Southern California counties.

Created in 1872, the unfair-competition law lets individuals sue businesses for actions such as illegal waste disposal and false advertising. Lawmakers amended it in 1933 to allow individuals to sue to protect public interests.

A Lockyer spokesman said the attorney general believes the law has stood the test of time.

`A scalpel and not a meat ax'

"We've generally taken the position that whatever reforms may be needed target the bad actors and abuses and not undermine important consumer protections afforded by statute," spokesman Tom Dresslar said. "It's got to be a scalpel and not a meat ax."

Bruce Brusavich, president of the Consumer Attorneys of California, said Lockyer's lawsuit adequately addresses the problem. He thinks the law needs only minor tinkering.

For example, his group supports requiring that judges approve settlements. Authorities say the Trevor Law Group insisted on secret settlements.

"I don't think they'd dare want to show those to a judge," Brusavich said. "But just the acts of the attorney general should have a chilling effect on the misuse of the statute."

The debate pits some of the Capitol's strongest interests against each other.

Lawyers, generally allied with the Democrats who control state government, have had the upper hand in recent years. Since 1997, every bill written to restrict who could file unfair-business-practice lawsuits has died in committee. Each of those bills was authored by a Republican.

"The lawyers are openly preying on sympathetic small businesses, and that has attracted Democrats to the problem," said John Sullivan, president of the Civil Justice Association of California.

But Republicans' business-backed bills could find a more receptive ear this year.

A lawyer who represents some small-business owners sued by the Trevor group and other firms said lawmakers should be open to changing the law.

"It has a good intent, but there are some loopholes that drafters didn't see," said Lan Quoc Nguyen of Westminster. "I hope they can fill in those loopholes."




Published 2/28/2003