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Written by Tom Scott, Executive Director
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Wednesday, 24 June 2009 13:07 |
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Yesterday, The Milken Institute released a new report titled, Manufacturing 2.0 - A More Prosperous California. The report was released in cooperation with the California Manufacturing and Technology Association (CMTA).
According to the report, California has 21 percent fewer manufacturing jobs in 2007 than in 2000, compared with a decline of 20 percent nationally and 13 percent among seven states that are competing for the same types of manufacturing jobs. It went on to say that driving the decline is California's reputation for an unfriendly business climate, comparatively high tax rates, a restrictive regulatory climate and unsustainable government spending.
I am just surprised that litigation was not also included. In addition to the items mentioned above, one thing that impacts economic development and steers businesses to other state or countries is a state's litigation climate. All of these items go hand in hand at turning businesses away. I can see why Governor Perry in Texas is having such a great time.
When I worked at the CMTA back in early 1990's, then President Bill Campbell (former State Senator) would always say that for every one manufacturing job you create in the state, you create five additional service jobs. Since that time California has been systematically wiping out it's manufacturing base. People wonder why we have an 11.5 percent unemployment rate.
When people talk about high taxes and too many regulations, they need to start putting on that list excessive litigation. Manufacturers have plenty of choices when it comes to business friendly states and right now California is not one of them. |
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Written by Maryann Maloney Marino, Southern California Regional Director
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Monday, 22 June 2009 04:27 |
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The Los Angeles Business Journal’s cover story, “The Big Slip Up,” tells the story of a filmmaker who became so enamored with a plaintiff lawyer's battle with Dole Foods that he filmed a documentary titled, “Bananas.” His documentary follows a plaintiffs' attorney who recruited large numbers of alleged victims who claimed they became sterile from Dole’s use of pesticides in Nicaragua.
The problem is that reality tells a different story -- a Los Angeles judge has ruled that many of the alleged plaintiffs never even worked for Dole and are not sterile. The judge may even refer the attorney to the state bar for sanctions. While Dole Foods technically won this case, the company still had to pay out a whole lot of money to defend itself for something that was untrue in the first place.
Dole has threatened to sue both the filmmaker and the Los Angeles Film Festival if the piece is shown. It’s a shame that Dole’s image will be tarnished again when film previews later this month. The trailer gives the impression that the filmmaker is sympathetic to the plaintiffs, even with the fabricated case. Maybe the filmmaker could do a follow up documentary on the disciplinary action the personal attorney is now facing for his fraudulent claims and extortionist acts. The film might have a new audience. It could become mandatory ethics training for first year law students. |
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Monday, 22 June 2009 04:36 |
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Newport Beach Daily Pilot reporter Paul Anderson was so amused with Maryann Maloney Marino’s recent CALA press release about a lawsuit against Cap'n Crunch “Stand Up for Capn Crunch” that he wrote a cartoon and a blog. He said:
"Maryann Maloney Marino, the regional director of Citizens Against Lawsuit Abuse, told me she sent out the release to make the point about how necessary tort reform is. I told her I always get a little leery of the cries for tort reform as they tend to offer the usual populist solutions that don’t always work out for the best. But she wasn’t offering up the usual bromides — the draconian crackdowns on ambulance chasers. Rather, her organization just craves legislative solutions that will discourage such abuses of the system. It’s true that anyone hassled by a frivolous lawsuit like this could seek sanctions against the plaintiff, but some of the more notorious and well-financed law firms might just consider that the cost of doing business since they’re really only interested in harassing deep-pocket defendants into shelling out settlement cash. Something does need to be done to discourage that kind of chicanery. Steeper fines or even the threat of disbarment might accomplish that. But good luck getting that through Sacramento. Assemblyman Van Tran has attempted tort reform legislation this year and it was put into what I call committee coma — in other words, it was put on a shelf never to be heard from again. |
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Wednesday, 10 June 2009 15:32 |
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The San Diego Business Journal quoted San Diego Regional Director Lorie Zapf in an article about federal ADA legislation authored by Rep. Duncan Hunter. The bill would give business owners sued for alleged Americans with Disabilities Act violations a grace period for making fixes. The article said:
Lorie Zapf, president of the San Diego chapter of California Citizens Against Lawsuit Abuse, says the measure could help put a stop to “abusive, unscrupulous” lawsuits.
“Something like this really should have been there all along,” said Zapf, whose nonprofit serves as a watchdog to challenge civil justice system abuses.
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The verdict is in and it's not good. California is one of the most litigious states in the nation.
