Small Business Owners, Community Leaders Call For Legal Reform

SACRAMENTO – California Citizens Against Lawsuit Abuse (CALA), a nonpartisan grassroots movement for legal reform, today released a report summarizing a series of roundtable discussions with elected officials, community leaders and business owners about the negative effect of lawsuit abuse on job growth and California’s economy and what can be done to stop it.

“Lawsuit abuse is hurting California’s small businesses and communities at a time when we can least afford it,” said CALA Statewide Advisory Committee Member Travis Hausauer, owner of Sacramento’s iconic Squeeze Inn restaurant. “Money that business owners spend fighting abusive lawsuits is money they can’t use to expand their businesses or hire new workers.”

These roundtable discussions, held in Sacramento, Modesto, Fresno, Orange County, and San Diego, offered small business owners, community leaders and elected officials the opportunity to discuss their experiences with abusive lawsuits and their impact on communities across the state. The event allowed legislators, city council members, school board members and other elected officials to hear firsthand how lawsuit abuse hurts their constituents.

"Every month, we spend tons of time and thousands of dollars defending ourselves from lawyers hoping to extort a windfall from us or our insurance carriers,” said Kyle Kirkland, owner and president of Club One Casino in Fresno, CA. “Until that changes, California will continue to have companies, like ours, wasting time and money that could otherwise be spent on growth and employment.”

While specific stories of lawsuit abuse varied from region to region, each roundtable discussion centered on a common theme: California’s legal climate is severely hindering economic growth and hurting job creation. California’s small business owners are fed up with the Legislature’s continued inability to pass meaningful reforms.

“Small businesses often face shakedown lawsuits even though no one has been hurt. It’s these types of lawsuits that force businesses to close or relocate out of the state,” said John Kabateck, executive director of NFIB/California.

Previously this year, CALA has released two reports and a survey illustrating that bad lawsuits cost good jobs. This report, which will be delivered to every member of the Legislature, will be used in conjunction with those to further demonstrate to elected officials and leaders throughout the state that people believe and understand that lawsuit abuse hurts our economy.