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Las Vegas Business Press
Monday, September 6, 2010
Californians could ban punitive damages

By Ian Mylchreest
March 2, 2006

A ballot measure in California this year is taking a new tack on frivolous lawsuits, reports the Los Angeles Times. The measure would outlaw all punitive damage awards if state or federal regulators had okayed the product and its warning labels.

The measure is supported by big business and aims to cut the costs of frivolous lawsuits. Supporters say that all economic damage will still be recompensed but that companies playing by the rules should not be penalized unless they’ve been deceptive or fraudulent.

Consumer groups are understandably fighting this because they say punitive damages offer the best way of punishing companies for bad behavior. Hmm. The best way to really end frivolous lawsuits is stronger regulation and that allow state and federal governments to punish wrongdoers.

Business wants to ease the lawsuit pressure and do away with product regulations. Consumer groups have come to rely too much on plaintiffs lawyers and tort actions to further their interests. Car safety is one area where clear strong regulations have done much more than all lawsuits. If we were smart we’d learn that lesson for other products.

And while we’re talking about lawyers, the Review-Journal reports that the Nevada State Bar is pushing plaintiffs attorney Glen Lerner to call himself “a heavy hitter” and not “the heavy hitter.” Even for people whose business is splitting verbal hairs, this seems ridiculous.

There’s lots of problems with the plaintiffs’ bar, not least of which is that they often play the margins and settle cases for what they can get and don’t act up to their advertising. But the Nevada Bar is barking up the wrong tree on this one. The law is pretty clear that Lerner can use all kinds of puffery including this slogan.

And he’s got another heavy hitter in his corner - Dominic Gentile. He put the smackdown on the state bar 15 years ago when it tried to fine him for a press conference on the courthouse steps. The United States Supreme Court eventually reversed his punishment on First Amendment grounds.





One Response to “Californians could ban punitive damages”

Thanks to their campaign contributions to so amny legislators stae and federal, business groups virtually write the product regulations, and now they want to eliminate punitive damages, which can only be imposed when a jury, 12 citizens good and true, have determned that a busines has acted
with intentional negligence!!! What corporate greed indeed. Have these corporate plunderers no sense of justice?


Written by Al Balboni on March 2, 2006 at 10:22 pm

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