New Legislation Aims To Make California More Business-Friendly

A Riverside County lawmaker introduced legislation today that would give defendants in lawsuits the right to appeal if a court grants "class-action'' status in lawsuits filed against them.

Assemblyman Brian Nestande, R-Riverside, said AB 271 is needed to "level the playing field for class action defendants and bring California into line with other states and with federal law.'

"It will also help California's economy recover by making the state a
more attractive place to do business and thus bring much-needed jobs to the
state,'' he said.  

Under the proposed measure, if a lower court judge certifies a "class'' of victims in a civil suit, a defendant would have the option of appealing that decision to a higher court before the case is litigated before a judge or jury.

In California, defendants in class action lawsuits currently have no recourse once certification has been granted, whereas plaintiffs can appeal if a judge refuses to certify a class, which can include countless unnamed victims, according to the Civil Justice Association of California.

"Ranking after ranking shows that California has one of the worst legal climates in the country, and that's a major reason businesses are reluctant to locate or expand operations here,'' said CJAC President Kimberly Stone.

"This bill is a long overdue measure that would simply bring balance and fairness to California class action law by giving defendants the same appeal rights that plaintiffs already enjoy.''

The association, which is best known for backing Proposition 64, the anti-shakedown lawsuit measure approved by voters in 2004, cited surveys that
two-thirds of corporate attorneys say their clients rank the prospect of litigation high on the list of pros and cons regarding whether to locate in a state.

Nestande said his bill will strive to emulate federal law, which provides equal opportunity for both sides in a lawsuit to contest class certification before trial.--City News Service