Attorney Fee Bill Could Harm State’s Economy
The Attorney-Client Fee Arrangements Initiative on the November ballot will devastate California’s economy by unleashing a lawsuit explosion at the expense of California’s seniors, investors and taxpayers (“Securities Law Expert Warns Against Measure,” June 28).
The initiative, written and funded by East Coast securities lawyers, is designed to make it easier to file frivolous lawsuits in California that are not allowed under federal securities law. The landslide of lawsuits from the initiative will clog California’s courts, making it even more difficult for people with legitimate claims to move their cases in a timely manner.
Not only will the initiative produce a landslide of lawsuits, it will probably drive companies out of California, taking with them their good-paying jobs and economic benefits. A recent study found that the Southland’s motion picture, high-technology, biotechnology and real estate industries would be hard-hit unless voters defeat the initiative. The initiative would cost the region 65,582 jobs by 2006, and its economic output would be reduced by $8.2 billion in the next decade.
California’s economy is making a successful comeback, and we can’t afford to let a few securities lawyers destroy our economy in order to fill their pocketbooks. I urge voters to defeat this initiative in November.
LOUIS CALDERA
Assemblyman, 46th District
Los Angeles
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