FOR IMMEDIATE RELEASE
June 2, 1997

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

Early Report Card on Civil Justice Legislation Shows Committees Moving Bills That Would Increase Wasteful Litigation

Legislative committees dealing with civil justice have tended so far this year to approve bills that would undermine California's economic recovery and to hold up legislation to deter wasteful lawsuits.

"The jury is still out on the Assembly and Senate as a whole, but we are pleased to report that there appears to be a bi-partisan sense of restraint when it comes to floor votes on some of the bad bills," observed John H. Sullivan, president of the Civil Justice Association of California.

"The Legislature is enjoying the comfortable situation of tax revenue well above projections -- a direct result of California's economic recovery," he said. "That's why it's surprising that on the liability front, key committees have advanced bills, largely trial lawyer-sponsored, that would spawn costly litigation and drag down the very companies that are producing jobs and economic growth."

Sullivan noted that trial lawyer campaign contributions -- $3 million over the 1995-96 election cycle -- have produced judiciary committees steeply tilted in favor of the trial lawyer agenda of "finding new deep pocket defendants and more ways to sue them."

"We hope and believe that as the full Assembly and Senate each considers these bills, individual legislators will look hard at these harmful proposals and use their "no" votes as not only a vote for California's continued economic recovery but as an opportunity to show their independence."

The "Early Report Card" on committees is attached:

Summaries of "Early Report Card" Legislation

Bills that would hurt California's economic recovery:

AB 250 (Kuehl)
California's model, the successful 20-year-old Medical Injury Compensation Reform Act (MICRA), would be drastically undercut. AB 250 attacks the $250,000 non-economic damage limit that has held down malpractice insurance costs and given Californians continued access to potentially-beneficial but risky medical procedures.

AB 1109 (Escutia)
Uninsured motorists and others not covered by an insurance policy would be able to file high cost lawsuits against insurers under AB 1109. Insurers' ability to investigate fraudulent claims would be crippled, insurance costs and premiums would go up, and courts would be further clogged to the tune of $25 million in added taxpayer costs.

AB 1324 (Escutia)
California's already-too-weak "summary judgment" law would be further weakened by pro-frivolous lawsuit AB 1324. Summary judgments are one of the most effective tools for eliminating frivolous claims, and trial lawyers badly want to make it harder for parties to challenge and for judges to eliminate claims that have no merit.

Senate Bill 19 (Lockyer)
This bill would let unhappy plaintiffs take an arbitration award to court, even though there was an agreement that arbitration is binding. SB 19 would send more cases to already-clogged courts and undercut the process for settling disputes faster, fairer, and at less cost.

Bills that would help California's economic recovery:

AB 1295 (Caldera)
Abuse of the state Unfair Competition Act would be curtailed by AB 1295, which would require that a legitimate plaintiff with actual harm exists before a suit can be brought.

AB 843 (Goldsmith)
"Summary judgments" to eliminate frivolous lawsuits and claims would be made more useful by AB 843.

AB 657 (Baugh)
AB 657 would discourage frivolous lawsuits over job termination disputes by capping the potential for lifetime pay awards.

AB 1171 (Kaloogian)
Excessive auto litigation and insurance rates would both decline under AB 1171, which would reduce wasteful lawsuits involving non-serious injury accidents.

AB 1371 (Morrow)
This bill would discourage speculative punitive damage claims by requiring judges, instead of juries, to set the amount of punitive damage awards according to fair criteria laid out in advance.

SB 1309 (Mountjoy)
Bogus lawsuits brought under the Unfair Competition Act would be curtailed by SB 1309. Currently, lawyers can sue without a plaintiff or even any evidence of harm.

SB 1278 (Leslie)
This bill would discourage frivolous lawsuits over job termination disputes by capping the potential for lifetime pay awards.

REPORT CARD ON CIVIL JUSTICE LEGISLATION


Bills that would hurt Californian's Economic Recovery Bills that would help Californian's Economic Recovery
ASSEMBLY JUDICIARY COMMITTEE MEMBERS AB 250 (Kuehl) AB 1109 (Escutia) AB 1324 (Escutia) AB 1295 (Caldera) AB 843 (Goldsmith) AB 657 (Baugh) AB 1171 (Kaloogian) AB 1371 (Morrow)
Alby Not Voting No No Yes Yes Yes Yes Yes
Aroner Yes Yes Yes Not Voting No No No No
Baugh No Not Voting No Yes Yes Yes Yes Yes
Caldera Not Voting
Not Voting Yes (author) Not Voting No No No
Escutia Yes Yes Yes No No No No No
Figueroa Yes Yes Yes No No No No No
Floyd Yes Yes Yes
Not Voting No Not Voting No
Kaloogian No No No Yes Yes Yes Yes Yes
Keeley Yes Yes Yes Yes No No No No
Kuehl Yes Yes Yes No No No No No
Martinez1


Yes
No
No No No
McClintock Not Voting No No Yes Yes Not Voting Yes Not Voting
Morrow No No No Yes Yes Yes Yes Yes
Ortiz Yes Yes Yes Not Voting No No No No
Pacheco No No No Yes Not Voting Not Voting Yes Yes
Shelley Yes Yes Yes Not Voting No No No No
Sweeney (alternate)
Yes
No



Villaraigosa2 Yes Yes

No


1) Joined the committee in May   2) Left the committee in May

REPORT CARD ON CIVIL JUSTICE LEGISLATION


Bills that would hurt Californian's Economic Recovery Bills that would help Californian's Economic Recovery
SENATE JUDICIARY COMMITTEE MEMBERS SB 19
(Lockyer)
SB 1309
(Mountjoy)
SB 1278
(Leslie)
Burton Yes No No
Calderon Yes Not voting Not voting
Haynes Not voting/ No* Yes Yes
Lee Yes No Not voting
Leslie No Yes Yes
Lockyer Yes Not voting No
O'Connell Yes No No
Sher Yes No No
Wright Yes/ No * Yes Yes

*Vote in committee differs from floor vote.


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