Unfair Competition Law Reform: The Sequel

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, Feb. 20, 2004 Share this on FacebookTweet thisEmail this to a friend

AB 2369 (Lou Correa D-Santa Ana) would reform the state's Unfair Competition Law. CMTA has advocated that this law must be changed to require final adjudication for actual plaintiffs who have suffered real harm. While a number of Republican legislators provided leadership for this type of reform last year, Correa has been the leader on the Democratic side for real, substantive and fair reform. Last year Correa authored AB 69, only to have the trial lawyers and the leadership of the Assembly Judiciary Committee kill the bill.

Reforms in AB 2369 would:

* require plaintiffs to notify regulatory and law enforcement officials when filing a suit,
* disqualify attorneys with clear conflicts of interest,
* make properly adjudicated suits final in order to stop defendants from being sued multiple times for the same allegation,
* apply sanctions against attorneys who file frivolous claims, and
* require a court to review and approve settlements to weed out so called “shakedown” suits.

Meanwhile, efforts to get real reform on the November ballot continue. Hopefully, with the threat of an initiative, legislators defending the current and abused system will be open to changing the law for the better of all interested parties and the economy as a whole.
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