In February, 2003, The California Attorney General Sued A Law Firm, Ironically, For The Unfair Business Practices
In February, 2003, the California Attorney General sued a law firm, ironically, for the unfair business practices of targeting thousands of small businesses with abusive lawsuits. Significant law changes are necessary. This year, nine bills were introduced to address the extortionist actions being inflicted against many businesses in California. Unfortunately, the Assembly Judiciary Committee killed three bills that included reform on a partisan vote and passed one piece of legislation that offers weak filing requirements and even increases the leverage for those filing these suits. They even failed to pass a measure aimed specifically at the extortion aspect of the current law. On May 13, 2003, the Senate Judiciary Committee also heard four unfair competition measures. Three would have resulted in meaningful reform law. Yet the committee failed to pass the measures that would have effectively addressed blatant abuse. In fact, SB 122 and AB 95 could worsen the situation by creating new incentives to sue businesses and reserve excess money paid by defendants for the ambiguous "promotion of justice." Regrettably, this could hearten the very people who are perpetrators of abuse. Both bills passed the Senate and Assembly with a very narrow majority and are awaiting a hearing in the opposite houses.
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