Lara Takes Aim at ‘Vexatious Litigants’ with New Law

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On Wednesday, State Assemblyman Ricardo Lara (AD-50) spoke with local business owners about lawsuit abuse at a luncheon hosted by both the South Gate Chamber of Commerce and the local Rotary Club.

“The backbone in this economy, and that of the southeast, are small businesses,” said Lara to Patch after his remarks at the luncheon. “Ninety percent of jobs created in California are coming from small businesses.”

Assemblyman Lara introduced a bill AB 2274 with the purpose of stopping people who file hundreds of lawsuits against small businesses by claiming American with Disabilities Act (ADA) violations.

The law was passed on September 21^st of this year and will go into effect on January 1, 2012.

“What it does it really tracks down vexatious litigants,” said Lara. “This gives judges opportunities to give further legal scrutiny.”

The law essentially allows judges to toss lawsuits that they feel have no legal merit.

According to Lara, these lawsuits can cost businesses thousands of dollars and cripple them in an already weak economy. Further adding that this can contribute to a bigger problem, because of the positive economic role that small businesses are having in California.

“This affects our local and state economy,” said Lara. “It’s very timely.”

South Gate Mayor Bill De Witt, who was present for the luncheon, concurred with the assemblyman and expressed his support for the law.

“It is a step in the right direction,” said De Witt. “The ADA was a monumental federal event; it set the stage for a lot of things, but also provided a lot of opportunities for unscrupulous lawyers.” 

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