FOR IMMEDIATE RELEASE
June 5, 2001

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

Business Community Continues to Oppose AB 36
Despite amendments, trial lawyer proposal still threatens California businesses

SACRAMENTO - The Civil Justice Association of California (CJAC) and a broad business coalition today reiterated its opposition to anti-business legislation, Assembly Bill 36 (Steinberg) despite recent proposed amendments. A letter to Assemblymember Darryl Steinberg outlines reasons for continued opposition to legislation.

"While there have been many discussions about the proposed legislation, the bill still poses a significant threat to the ability to do business in California," said John H. Sullivan, CJAC President. "We will continue to oppose this bill and its counterpart in the Senate (SB 11 - Escutia) until they provide protections for proprietary information and the privacy of employees."

California judges already have the power to deny confidentiality when any information related to a lawsuit is truly important to the public safety. However, both bills go far beyond that by opening the discovery process to the public, making a company's business plans, intellectual property and even employee emails vulnerable with the mere accusation of wrongdoing.

Even innocent companies will be forced to settle if their proprietary information is threatened by a lawsuit.

"These bills are wolves in sheep's clothing," added Sullivan. "The trial lawyers are pushing these bills for their own personal financial gain."

See attached letter to Steinberg.

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