3 Lawyers Deny Lawsuits Were Extortion Scam

Three Beverly Hills lawyers accused of using the state’s unfair competition law to extort cash settlements from thousands of auto garages and restaurants in California defended their actions as legal and proper at a State Bar disciplinary hearing Thursday.

Lawyers Damian S. Trevor, Allan Charles Hendrickson and Shane Chang Han of the Trevor Law Group of Beverly Hills face possible disbarment or license suspension on charges that they filed frivolous lawsuits against 3,000 businesses over the past year.

Deputy trial counsels for the State Bar say the lawyers claimed the suits were filed on behalf of the public, but were really aimed at collecting settlements from businesses that wanted to avoid a costly trial.

On Thursday, a lawyer representing the three attorneys refuted those claims, contending that there was nothing illegal about seeking settlements and that the State Bar and other groups encouraged the settling of cases outside of court.

“This claim that my clients are doing something wrong by trying to settle cases is absurd. That’s exactly what they’re supposed to do,” lawyer Kevin Gerry told the hearing judge, Richard A. Honn.

The suits by the Trevor Law Group were filed under the Unfair Competition Act, which allows private citizens or organizations to sue commercial businesses for such unfair practices as false advertising.

Deputy Trial Counsel Jayne Kim argued that the lawyers created their own group, Consumer Enforcement Watch, and staffed it with friends and relatives.

“Their conduct was unethical,” Kim told the judge. “They will not stop. But this court has the ability to stop them.”

Trevor lawyers say their suits were intended to police corrupt garages and restaurants with a history of violations.

Gerry told the hearing judge that a number of the settlements have already been approved by a trial judge who deemed that the suits were filed in the interest of the public. Gerry also said it was not illegal for the lawyers to seek a profit.

“This notion that my clients are motivated by making money -- your honor, that goes right to the heart of the capitalist system. There’s nothing wrong with being motivated by making money,” Gerry said.

Kim also said that Han held himself out to be a lawyer for more than 1 1/2 years when in fact he had no California law license. Han was issued a California license last June, two months after he allegedly helped prepare and file the unfair competition suits.

“Han engaged in the unauthorized practice of law and the others aided and abetted him,” Kim said.

The hearing is scheduled to resume today.

Once it concludes, the hearing judge has 10 days to make a decision on whether action should be taken against the lawyers.