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FW: Californa lawsuit

Title: FW: Californa lawsuit
I'm forwarding this to the list because it applies to the situation Johnny's Seeds ran into.
-Lon Rombough

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From: Larry Maxcy <larrymaxcy@earthlink.net>
Date: Thu, 27 Feb 2003 12:34:01 -0800
Subject: Californa lawsuit

Hi Lon,

This is not exactly the same as the Johnny's case, but quite similar.
Maybe some state will now go after the lawyers who sued Johnny's.

his is from today's Los Angeles Times

All best,
Larry Maxcy

State Accuses Law Firm of Extortion
Santa Ana and Beverly Hills groups abused a consumer law to seek
settlements, suit alleges.
By Monte Morin
Times Staff Writer

February 27, 2003

State Atty. Gen. Bill Lockyer filed a lawsuit against a Beverly Hills
law firm Wednesday alleging that the lawyers used the state's Unfair
Competition Law to extort cash settlements from thousands of small
businesses under the guise of consumer protection.

Lockyer, who described the action as a "delicious irony," filed the suit
under the same law that the Trevor Law Group used when suing more than
2,000 auto repair shops and about 1,000 restaurants. Trevor Law group
lawyers Damian Trevor and Allan Hendrickson also are being investigated
by the State Bar of California.

"Trevor Law Group operates a shakedown operation designed to extract
attorneys' fees from law-abiding small businesses," Lockyer said.
"They've abused one of the state's most important consumer protection
statutes and dishonored attorneys who practice law in the public
interest. There's some delicious irony in turning the weapon around and
using it on them."

The Unfair Competition Law, also known as Business and Professions Code
17200, allows private individuals or nonprofit groups to sue businesses
that engage in unfair practices, such as price fixing and false advertising.

The attorney general's suit, filed in Los Angeles County Superior Court,
accuses the Trevor Law Group and the Consumer Enforcement Watch Corp. of
Santa Ana, owned by Ron Jamal Kort, of using the consumer protection law
to collect cash settlements while fraudulently claiming to protect the
public. The suit seeks repayment of all money collected by the groups
and $1 million in penalties.

Among other allegations, the suit says that the defendants formed
Consumer Enforcement Watch for the sole purpose of pursing such
litigation, that they have engaged in a massive number of frivolous
lawsuits and that they have failed to conduct adequate investigations
into the merits of their cases.

The suit also alleges that the defendants have tried to obtain money by
threatening unlawful injury in the form of financial harm. The suit
alleges that businesses are coerced into paying the group anywhere
between $6,000 and $26,000 or face even more expensive court costs.

Lawyers at the Trevor Law Group did not return telephone calls
Wednesday, but have insisted that their lawsuits are legitimate.

The attorney general's lawsuit comes at a time when small-business
groups and tort reform organizations are demanding a change in the law.
Lockyer, who is viewed by tort reform activists as closely allied with
consumer attorneys, said he was not trying to head off a change in the
law by suing the Trevor group.

"I didn't have any such motives," Lockyer said. "Business groups have
been trying for 30 years to change this law, and I think the odds are
against them."

Lockyer said his office was also investigating other law firms and
consumer groups that have been accused of abusing the consumer law.


 
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