SACRAMENTO – The Civil Justice Association of California (CJAC) urges swift legislative action on a proposal introduced today that will stop the worst abuses of the state’s jumbled class action law, while still protecting the right of truly harmed Californians to have their day in court.
Assembly Bill 8X 38 would align California with the federal system and other states by giving judges clear statutory rules for handling class action cases and greatly reducing the legal uncertainty that makes these lawsuits expensive and time-consuming.
The bill – dubbed the Consumer Legal Remedies Act – was authored by Assemblywoman Audra Strickland (R-Thousand Oaks) and sponsored by CJAC, and will bring much-needed clarity to class action law and help counter the states competing with us for good jobs.
“This bill strengthens California law,” said CJAC President John H. Sullivan. “It will stop the game playing and uncertainty that results under current state law, while protecting the class action remedy in cases where it’s appropriate.”
The bill would replace California’s Section 382 of the Code of Civil Procedure (enacted a century and a half ago) with a comprehensive statutory framework for class actions.
California’s low legal climate ranking – as documented in several nationwide reports – affects the state’s ability to attract and retain businesses and jobs. The U.S. Chamber Institute for Legal Reform’s 2008 State Liability Systems Ranking Study put California in the bottom five states for the way it treats class action lawsuits.
In addition, 64 percent of business lawyers surveyed said a state’s litigation environment is likely to impact important decisions at their company, such as where to locate or do business.
State lawmakers have passed up several chances to improve California’s class action law. Assembly Bill 298, introduced early in the 2009-10 legislative session; AB 1905, introduced in the 2007-08 legislative session; and AB 1505, introduced in the 2005-06 legislative session, would have allowed defendants the ability to appeal the class certification decision. Assembly Bill 1505 also proposed other standards to bring increased clarity and fairness to California’s class action law.