FOR IMMEDIATE RELEASE
May 2, 2000

CONTACT: John H. Sullivan
Barbara Wheeler
PHONE: (916) 443-4900

Bill to Protect California from Attorney-Fees Machine Stalls in Committee
Reform of California's Unfair Competition Law (UCL) on Hold for Now

SACRAMENTO - A Civil Justice Association of California (CJAC)-sponsored bill (AB 2186 - Pacheco) requiring private lawyers to have a real, injured client when they file lawsuits under the state Unfair Competition Law failed to receive approval from the Assembly Judiciary Committee today. The author Assemblyman Robert Pacheco was granted reconsideration of the bill, making it eligible for a future vote in the committee.

"This bill is a very targeted solution to problem of a relatively few but growing number of lawyers converting a basically good law into a personal revenue raiser," said John H. Sullivan, CJAC President. "It does not affect district attorney use of the Unfair Competition Law. It does not even limit private attorneys who want to use the law to stop a disreputable business practice. But it does add a common sense requirement to private lawyers who file a UCL suit demanding restitution from a company - they need to have at least one real person who was harmed and is eligible to receive that restitution."

Sullivan said some lawyers are able now to steer restitution money into their own vague organizations and use the money, evidently, to support themselves and fuel future litigation.

"We do not want to see the ability to protect consumers hampered. In fact, we believe that AB 2186 will increase consumer protection by requiring private attorneys who file UCL cases to actually contact the consumers they claim to represent," added Sullivan.

Currently, a private lawyer may file a suit on behalf of the public without ever notifying the people he or she claims to be helping! Not only does this leave the "represented" people without any say in a case filed on their behalf, but it leaves defendant companies without protection from repeated lawsuits over the same activity.

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