Tuesday, April 03, 2012

Feinstein seeks end to abusive suits against firms

The San Francisco Chronicle reports:
Enter Sen. Dianne Feinstein, D-Calif. In a letter to California's Senate President Pro Tem Darrell Steinberg last month, Feinstein demanded that the Legislature do something to stop the "shakedown" tactics pursued by a small group of plaintiffs and lawyers that "threaten the viability of small businesses in our state." If the Legislature failed to take action, she warned, "I will consider introducing legislation in the U.S. Senate."

Any such legislation presumably would address the ease with which, in Feinstein's words, "abusive lawsuits" and "coercive demand letters" can be filed in California. And, unlike federal law or in other states, how it can cost small-business owners found in noncompliance with ADA regulations guaranteeing ease of access $4,000 for each violation, per day, no matter how trivial and easily fixable the alleged violations are.

What happens in most cases - here's the "coercive demand" part - small-business owners settle, often for tens of thousands of dollars, in exchange for plaintiff and lawyer to walk away (and also forget about the violations).

Feinstein is channeling her inner "Grover Cleveland" wing of the Democrat party.