Consumer-Protection Cases : County Finds a Novel Way of Settling Suits

Companies that agree to settle consumer-protection cases in San Joaquin County think they look guilty if they end up paying a cash fine.

They are much more inclined to buy something that the county needs.

Deputy Dist. Atty. Stephen Taylor, head of the county’s consumer fraud division, has developed a novel approach called “in-kind payments” that soothes the defendants and helps the county at the same time.

“The contribution should be related to beefing up consumer protection,” Taylor decided. “If a defendant is in a unique position to provide the community and taxpayers with something useful, we’ll ask for it.”

Mohawk Rubber Co. was willing to settle a water pollution case discovered by a state Fish and Game warden. The warden needed expensive camera equipment because “good photos are crucial to prosecution,” Taylor said.

Bought Camera Kit

The company bought a 35-millimeter Nikon camera, zoom lens, flash attachment and waterproof carrying case that will be used for similar cases in the future.

A company accused of making illegal video gambling machines agreed as part of its settlement to buy a $600 Wurlitzer jukebox for the county’s children’s shelter.

“I took a tour of Mary Graham Hall over a year ago,” Taylor said. “The kids out there told me they thought the place was a bore. All they had was a cheap, plastic Mickey Mouse record player and a small black-and-white TV.”

Taylor thought of the abused and neglected children staying at the hall when he began negotiating the video case settlement.

Children Appreciate It

“It was like Christmas,” said shelter director Kathleen Equinoa, describing the day the jukebox arrived. “It’s an expensive piece of equipment. I can’t imagine the county buying us something like that. We depend on community support. I’m sure the children will really appreciate this.”

Fines turn into a public service in Taylor’s hands.

“The defendants love it,” he said. “They feel far better doing something tangible for the community as opposed to just writing out a check that disappears into some fund like taxes.”

Taylor tries to avoid trials because of the expense and the uncertainty of their outcome and is able to use the in-kind payments as a wedge in a settlement.

“It’s psychological,” he said. “Maybe they regard the cash as an admission of guilt.”