Proposition 64: A Major Success Story in the Fight Against Lawsuit Abuse
On November 2, 2004, Californians voted 59.1% to 40.9% to stop extortion lawsuits being brought by private lawyers under the state’s unique Unfair Competition Law. The victory came after a carefully crafted, $14.5 million campaign funded by an unusually broad spectrum of the business community whose members had been victims of shakedown lawsuits for years leading up to the election.
Newspaper editorials ran 4 to 1 in support of Proposition 64, with at least 29 newspapers urging their readers to vote “yes.”
The victory came after years of unsuccessful efforts by the Civil Justice Association to persuade the Legislature to stop the abuses under Business & Professions Code Sec. 17200. The powerful plaintiffs’ lawyers lobby, who for years denied that the law was being used to extort settlements, blocked bi-partisan attempts at reform.
The CJAC Board of Directors in the fall of 2001 initiated a research and drafting project that methodically explored options and built support during the many months leading up to the November 2004 statewide election.
Proposition 64 - How It Works
- Proposition 64: How It Works (11/04/04)
- Full Text of Proposition 64
- Official Title and Summary, and Ballot Arguments
- Introduction, Voter Information, Arguments, Key Web Sites, and Articles
- Proposition 64 & Pending Cases
Proposition 64 - History of a Win
- Special edition of CJAC’s Balance newsletter
- Governor’s Endorsement of Proposition 64
- Examples of Unfair Competition Lawsuits filed by Private Attorneys
Proposition 64 Win Articles:
- Proposition 64 Votes by District:
- Videos:
Legal Shakedowns Under California’s Unfair Competition Law
Business and Professions Code 17200 - Unfair and Out of Control
Abuses That Led to Proposition 64
- A Growing Problem
- Call It Gonzo Law - The Unfair Competition Statute covers any claim, if it’s presented with a straight face. by John H. Sullivan, President, Civil Justice Association of California
- California’s Notorious “17200” - Written by Lewis Carroll, Adapted by Stephen King? (October 24, 2002)
- Why Californians Need Never Say, “There ought’a be a law.” by Fred J. Hiestand, General Counsel, Civil Justice Association of California
Victims & Examples
- Picture Your Company on the Receiving End of One of these More Recent Examples of Private Lawyer 17200 Lawsuits (July 16, 2003)
- Do You Think You Are a Victim Of a “17200” Shakedown Frivolous Lawsuit? Here Is What You Can Do Now! (April 22, 2003)
News & Opinion
- The Shakedown State, Commentary, The Wall Street Journal, July 22, 2003
- Consumer-Protection Law Abused in Legal Shakedown, Los Angeles Times, July 21, 2003
- Call for Reform, Editorial, Sacramento Bee, May 28, 2003
- 17200 Reform, The Daily Recorder Editorial Cartoon
- Democrats Side With Lawyers Over Small Business Owners, Dan Walters, Sacramento Bee, May 9, 2003
- Time To End the Legal Shakedowns, John H. Sullivan, CAA Perspective Magazine, March-April 2003
- Alleged Abuses Prompt Review of Consumer Law, California Bar Journal (February 14, 2003)
- Bollywood Bills - The Recorder, Tuesday, May 7, 2002
- What Others Are Saying About…The Unfair Competition Law
Letters, Testimony, Reports
- Letters of Opposition to AB 95 and SB 122 (May 13, 2003)
- CJAC President Testimony to Joint Assembly and Senate Judiciary Committee (January 14, 2003)
- CJAC President Testimony to Assemblyman Lou Correa Town Hall Meeting (January 10, 2003)
- Coalition Letter to Assemblyman Lou Correa Commending His Initiative for Action
- Joint Assembly and Senate Judiciary Committee Letter to Chief Justice of California Supreme Court Urging Action
- 1996 California Law Revision Commission Recommendation to Amend the UCL
- Attorney General Lockyer’s August 2, 2002 Response to July 11, 2002 Letter
- Attorney General Urged to Investigate ‘Legal Shakedowns’ Under State’s Unfair Competition Law (July 11, 2002)
- CJAC Letter to Attorney General Bill Lockyer (July 10, 2002)
Reform Proposals
- 17200 Abuses Prompt 11 Legislative Proposals (April 30, 2003)