WASHINGTON – California is officially a Judicial Hellhole again according to a recent report by The American Tort Reform (ATR) Association.
The report, part of a program that started in 2002, states the organization monitors “where judges in civil cases systematically apply laws and court procedures in an unfair and unbalanced manner.” California was at the top of the list for 2019.
The ATR report placed California in the number two position citing three specific areas of concern.
“California courts allow innovative lawsuits to proceed and the burdensome Prop 65 law is exploited by the plaintiffs’ bar," the report states. The state is a magnet for class action lawsuits, and given the courts’ and the legislature’s anti-arbitration stance, it is not expected to improve. In addition, California has adopted expansive employment law liability that is expected to lead to extensive lawsuit abuse.”
Tony Malandra, senior media manager of the National Federation of Independent Business, said he hopes that the report spurs change.
“I don’t think we’re pushing for changes in the system as much as we are for changes in many of the laws passed or soon to take effect,” Malandra said.
He cited one law in particular as problematic.
“Gov. Gavin Newsom’s signing of Assembly Bill 51 into law essentially prohibits arbitration of labor and employment claims as a condition of employment, will help keep us one of ATRA’s Judicial Hellholes,” Malandra said.
Malandra did cite what he felt was a “positive” move for the state’s legal system.
“NFIB helped stop Senate Bill 561 from reaching the Senate floor for a vote. The measure would have created a new private right of action to sue a business for any violation of the California Consumer Privacy Act, which goes into effect Jan. 1, 2020 and is already incredibly burdensome to comply with,” Malandra said.
The California Consumer Privacy Act was particularly troubling to ATR which predicted that it will bring “a surge of class action lawsuits,” from a law which it sees as placing an “...immense burden this law puts on business in the state.”