FRESNO – On Friday, June 10, California Citizens Against Lawsuit Abuse (CALA), a nonpartisan grassroots movement for legal reform, joined with Fresno leaders to discuss how lawsuit abuse is suppressing job growth in the Central Valley.

“California is one of the most litigious states in the country with more than one million lawsuits filed every year,” said Assemblymember Linda Halderman. “Those lawsuits cost jobs and slow economic recovery, and the Central Valley has been particularly hard hit.”

CALA also released a report titled “Ulterior Motives: How Abusive Lawsuits Suppress Job Growth in an Already Depressed Economy,” which cites examples of abusive litigation that have shut down, delayed or otherwise obstructed business development in the Central Valley, which has been hit harder by the economic downturn than almost anywhere else in the country. The lawsuits cited in the report have cost the Central Valley more than 2,000 jobs:

·     In Visalia, a lawsuit has delayed construction of a medical supply distribution center, preventing the creation of more than 100 jobs.

·     In San Benito County, legal roadblocks have prevented construction of a solar energy project that would generate more than 200 jobs.

·     In Merced, litigation has stalled the creation of more than 1,500 jobs.

·     In Galt, a lawsuit has halted the generation of more than 300 jobs.

“When the legal system is used for greed and not justice, everyone in the Central Valley pays,” said Julie Griffiths, CALA Central California Regional Director. “We need more jobs, not more lawsuits.”

“Money that businesses spend on needless litigation is money that can’t be used to break ground on new projects and hire more workers,” said Mike Prandini, President and CEO, Building Industry Association of Fresno and Madera Counties.

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