Opinion: Frivolous lawsuits turned California into ‘judicial hell’

California is the worst state to do business in, and it doesn’t even come close.

The state’s business environment seems to be getting worse year by year, with legislators refusing to take steps to protect small businesses and employees.

The American Tort Reform Foundation just released its annual Judicial Hellholes report, which ranks the worst legal systems in the country, with California ranked third. This is his 17th year on the list and confirms the worsening prospects for consumers, employees and small businesses in the state.

Our legal system tends to favor barristers, and the numbers prove it. Last year in California, plaintiff’s law firms spent more on advertising for local legal services, with over 809,000 ads costing him $85.3 million, more than any other state. was. Of course, an investment of this magnitude isn’t worth it without a pot of gold at the end of the rainbow. So what do you get?

Let’s get into it.

Proposition 65 has been around for nearly 40 years and was originally a bona fide law designed to protect consumers from potentially dangerous chemicals. Fast forward to 2022 and the state has expanded the list to more than 1,000 chemicals, with no volume considered (i.e., non-threatening trace amounts). To make matters worse, failing to put proper warning labels on your products can cost you up to $2,500 per day.

Unfortunately, because the law allows private individuals, attorneys, and advocacy groups to file lawsuits on the state’s behalf, California has brought about frivolous state-sponsored lawsuits. Stakeholders have nothing to lose by going looking for businesses, especially resource-starved small businesses, that cannot keep up with ever-changing state regulations, and suing just to make a quick paycheck.

Prop. 65 “fishing” expeditions have become a cottage industry in our state. Since 2012, filings have increased by 251%. To make matters worse, the plaintiff’s attorney is claiming more than 85% of his damages. Even the plaintiff himself has a penny left.

Likewise, companies have fallen prey to an increasing number of unharmed class-action lawsuits. Essentially, these lawsuits allege that the companies misled consumers through their marketing and product packaging. Consumers are claiming their chip bags have “too much air” or aren’t completely filled with beverages, and are seeking millions in damages. That’s it.

In fact, these cases have increased by more than 30% in the last year alone. why? Again, plaintiffs’ attorneys stand to make millions of dollars. This year, Welch’s settled her $1.5 million lawsuit, averaging her $4.94 in payouts to class members, and attorneys received her $394,657.

If you’re talking about a subject, it’s because there’s one. It’s a legal loophole that encourages trial attorneys to abuse the legal system for personal gain. There is no better example than the Americans with Disabilities Act. The ADA was designed to make public places accessible to everyone, but our state alone is responsible for her over 50% of the country’s ADA lawsuits. Clearly something isn’t right.

Take, for example, claims about website accessibility. Since 2018, his ADA filings online have increased by an incredible 3,000%. Those known as a “series of plaintiffs” akin to Proposition 65’s fishermen have filed a flurry of complaints, alleging that California businesses have not provided sufficient accessibility information on their websites.

This is particularly problematic in the hospitality industry, where claims center around technical issues such as sidewalk slopes and space under desks and sinks. When was the last time you saw this information on a website you visited?

From our misguided private attorney law known as PAGA or “Sue Your Boss” Act, to Lemon Law abuses in the auto industry, and even new COVID-19-related abuses, the number of litigation abuses in California Each example can be continued, but the theme remains the same.

Businesses, workers, consumers, and even victims of lawsuits are being exploited thanks to a broken tort system. Unbeknownst to any Californian, he is paying a $1,900 “tort tax” as corporate litigation costs skyrocket each year across the state. Abuse of litigation cost him a whopping 750,000 jobs.

Don’t think for a moment that legal issues don’t affect you, your family, your community, or hardworking Californians across the state. Without reform, businesses will continue to be targeted, forced to raise prices, and reduce or lay off workers’ wages. Our tort system has more influence than most people realize, and it’s time for lawmakers to awaken this exploitation and enact meaningful reform.

Mike Morasco is a member of the Escondido City Council and a local business owner.