Earlier this year, I appeared on KFMB-TV to discuss an abusive class action lawsuit that had been filed against California Pizza Kitchen and Nestle alleging that the companies were “deliberately poisoning their consumers” by selling frozen pizzas containing partially hydrogenated vegetable oil.
I’m happy to have some good news to report: a California federal judge tossed out this proposed class action lawsuit this week, noting that the plaintiff had no facts to demonstrate she had been harmed in any way, nor had she been misled by the product packaging.
This case is a clear example of how the “lawsuit lottery” works in America’s legal system: Plaintiffs such as these to sue large companies in the hopes of scoring an enormous settlement, even when they have weak evidence (or in this case, zero evidence) supporting their claim.
When our legal system is played like a lottery, we all lose. Companies have to spend money defending themselves from absurd claims, and this raises the cost of every product and service we purchase. In fact, a family of four pays on average more than $3,300 per year in a “lawsuit tax” to cover the cost of lawsuits.
This problem is especially severe in California, home of the “food court" because the huge number of food-related lawsuits filed here. One of the reasons California is the nation’s worst “judicial hellhole” is the relative ease of filing class action lawsuits here.
We need to pass reforms to our legal system to stop this nonsense. Until we do, companies that do business in California will face increased costs due to absurd lawsuits filed by plaintiffs playing the lawsuit lottery.
Ted Apodaca, editor of News Enterprise, covered our packed CALA small business roundtable in Seal Beach.
His article, "Lawsuit Abuse Talk for Local Businesses" begins:
"California Citizens Against Lawsuit Abuse held a small business round table discussion on Friday at Spaghettini Restaurant in Seal Beach.
State Assemblyman for the 72nd District Travis Allen was among the guest speakers and Los Alamitos City Councilman Dean Grose and Cypress Mayor Pro Tem Leroy Mills were among those in attendance. Allen spoke of upcoming legislation that could help curb the lawsuit abuse in California, mostly coming as a result of frivolous lawsuits for Prop 65 and American’s For Disability Act violations.
Part of the problem, according to CALA and Allen, is that businesses have no option to fix problems if they are found to be in violation. This has led to what Allen referred to as “shakedown” lawsuits by lawyers looking for a costly settlement from businesses. Allen said that while California has eight percent of the nations population, it has 40 percent of the ADA lawsuit filings.
“Businesses need to band together to be stronger against these frivolous lawsuits,” Allen said.
Read entire aritcle here.
Orange County Register's Seal Beach reporter Annie Zak covered our recent well attended and spirited small business roundtable at Spaghattini -
Here is what she had to say:
Republican Assemblyman Travis Allen spoke to a roomful of small business owners and city officials in Seal Beach earlier this month in conjunction with the group California Citizens Against Lawsuit Abuse to discuss how to end frivolous lawsuits that end up hurting small businesses, sometimes to the point of closing permanently.
“We don't want to live in a society that is abusive in our legal environment,” said Allen, insisting that legal change needs to be a bipartisan effort.
Tom Scott, president of the California branch of CALA, said that though legitimate suits are filed against businesses, there is also a lot of misuse.
“It's not just about lawsuit abuse. I'm more interested in what litigation costs,” Scott said. “Legal reform, to me, has to be talked about in the same breath as taxes (and) regulation.”
The group's message was that money saved on litigation could be used to save and create jobs, citing that if a mom-and-pop business uses all its money on a lawsuit and has to shut down, its employees are hurt, as well.
Read the entire story and learn how you can get involved here
Frank Mickadeit, Orange County Register's, long time and popular columnist attended our California Citizens Against Lawsuit Abuse Small Business Summer Roundtable event featuring Assemblyman Travis Allen at Spaghettini Restaurant in Seal Beach last Friday.
His column on August 8 "Law No Curb to ADA Suits," begins with:
"Last fall's Assembly Bill 1186 was supposed to cut down on lawsuit abuse by the predators who target small businesses for violations of the Americans With Disabilities Act and its California counterpart.
That's not happening, says one of the state's prominent ADA defense lawyers. On Friday, I found myself seated next to David Warren Peters at a luncheon sponsored by California Citizens Against Lawsuit Abuse.
As regular readers know, I've written extensively about a small number of disabled people - some of them ex-cons - who travel around the state filing scores of lawsuits for things like mismarked handicap parking spaces and bathroom mirrors that are too high. In California, there was a minimum $4,000 bounty per lawsuit, plus attorney fees.
Peters had told me back in September when the bill passed not to get too excited about the reforms.
"It's a long bill, but two reforms stood out."
For those with an OC Register subscription, you can read his entire column here.
KCRA broadcast a story about CALA's press cofnerence prior to its Day at the Captiol on March 13, in which over one hundred CALA supporters discussed the need for legal reform to improve California's economy with California's legislators. Speakers included California CALA Executive Director Tom Scott, Civil Justice Association of California President Kim Stone and small business owners Martin Diedrich and Joe Derian, both of whom have been sued under Prop. 65.
CALA supporter Suresh Kumar was featured in the Davis Enterprise. Here is a look at the story:
When lawsuits targeting businesses not in compliance with the Americans with Disabilities Act first swept through Davis, Suresh Kumar saw the signs on Olive Drive.
Like dominoes, Redrum Burger, Shell and — eventually — Kumar’s Olive Drive Market joined the slate of businesses sued for ADA non-compliance. Kumar paid $6,000 to settle his lawsuit.
“The reason people settle is that if you’re actually going through the legal process, it’s probably 10 times more expensive,” he said. “People who are involved in the lawsuits are attorneys, and they know this.”
Read the story here