Aide Christine Bedoyan-Caprielian, State Assemblywoman Linda Halderman M.D. and Vanessa Kachadurian
I am very proud that Halderman has introduced this bill, I have known her to be a fantastic physician and advocate for women with breast cancer. Now, Linda is ridding us of a cancer called "frivilous lawsuits"
http://www.fresnobee.com/2011/06/10/2422260/advocates-in-fresno-criticize.html
Advocates in Fresno criticize frivolous lawsuits
Posted at 11:13 PM on Friday, Jun. 10, 2011
By Victoria Guida / The Fresno Bee
Frivolous lawsuits are hindering job growth and driving up home prices in the Central Valley, an advocacy group said Friday morning in Fresno.
At a news conference, members of California Citizens Against Lawsuit Abuse accused lawyers of churning out lawsuits that harass companies and hinder businesses, all for the sake of generating legal fees.
The organization examined recent legal cases involving building projects in the area and estimated how many new jobs were not added as a result of costs and delays associated with those lawsuits. The tally: More than 2,000 jobs in the Valley were affected, according to a report the organization released Friday.
CALA joined others in support of a bill proposed by Assembly Member Linda Halderman, R-Fresno, that would require attorneys consulting with homeowners on a possible lawsuit against their homebuilder to disclose that, for instance, there is no guarantee of financial recovery from a lawsuit and that a lawsuit could affect the property's value.
"There are some bad apples who approach homeowners and tell them they can be guaranteed a quick recovery by suing their homebuilder, regardless of whether they have defects in construction or not," Halderman said. "This takes away potential jobs because construction cannot happen in this litigious environment."
Paul Olson, a Tulare homeowner, said a law firm has been "bombarding" his neighborhood with notices asking him and his neighbors whether they would participate in a class-action lawsuit alleging faulty workmanship by the homebuilder.
"This is complete and utter nonsense," Olson said. "None of the neighbors, including myself, have experienced any of the problems alleged by this out-of-town law firm."
Mike Prandini, CEO of Building Industry Association of Fresno and Madera counties, said such lawsuits also increase the price of homes because homebuilders must factor their insurance premiums into the cost of construction.
The bill failed to pass committee March 15. The committee unanimously granted reconsideration, and Halderman said she is optimistic but noted that it's "going to be an uphill battle."
Before the vote, Consumer Attorneys of California wrote an opposition statement, saying the bill put litigation in an unfairly negative light and arbitrarily singled out construction-defect lawsuits.
Mark Milstein, a member of CAOC, said notices sent out are meant to inform about litigation happening in case other homeowners have similar problems. He said each home is evaluated individually.
As for frivolous lawsuits, Milstein said he has never handled a case in which there weren't at least some defects.
"If they're not able to recover, it doesn't make financial sense to sue," Milstein said. "The intent of [the bill] was to scare people off from pursuing their legal rights."
He also referred to the claim that these lawsuits drive up the price of homes or decrease property value as "ridiculous," given the state of the economy.
