For more than a decade, predatory
lawyers used California’s unique “Unfair Competition Law” to extort
settlements from companies of all kinds and sizes doing business in the
state. The California Legislature, controlled by the personal injury
lawyers using this law, refused to pass a law to stop what became known as
“shakedown” lawsuits.
California courts saw the problem as
well. As one state Supreme Court justice wrote:
“The . . . court is not unmindful of
the abuses to which the UCL is subject. Many of those concerns are matters that
should be addressed to the Legislature, not the judiciary,
however..”
Supreme Court Justice Janice Rogers
Brown was more outspoken against the injustices that continued to mount. She
said so in a number of dissents, calling the Unfair Competition Law:
"a
means of generating attorneys fees without any corresponding public benefit" and
proclaiming that "No statute...in this state or the nation confers the kind of
unbridled standing to so many without definition, standards, notice
requirements, or independent review... . .... Orderly legal development is not
advanced by placing this court's imprimatur on yet another unfair competition
claim of dubious pedigree.
(Quelimaine
Company v. Stewart Title Guarantee Co, 1998, and Stop Youth Addiction v. Lucky
Stores)
While Justice Brown
may have been in the minority in the late 1990s, her view won the strong
endorsement of a majority of Californians last November when by an overwhelming
59% margin they approved Proposition 64 – an initiative that stopped private
lawyer lawsuits brought on behalf of phantom clients with no evidence of injury
or financial loss.
As a state appellate
justice wrote in a decision in one of the final batch of “shakedown” lawsuits
before the courts, “...this case represents what will hopefully be the last of a
breed of lawsuits against businesses where lawyers make big bucks, and clients
nothing, for finding some tiny arguable technicality and bringing an unfair
competition suit."
John H. Sullivan
President
Civil Justice Association of
California
Co-Chair
Californians to Stop Shakedown
Lawsuits - Yes on Proposition 64