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February 06, 2012
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The Mere Violation Of A Technical Rule Has Often Been Deemed Sufficient For Legal Action And Recovery


Businesses in California are facing, among other things, 100-400% increases in workers' compensation premiums, increasing employer mandates, and high tax and regulatory burdens. Unfortunately, a certain litigation strategy threatens many companies in an environment ripe for abuse. California's Unfair Competition Law is unique in that it allows anyone to sue businesses for alleged unfair business practices, even if they have not directly incurred the alleged wrongdoing, and even if no one was actually harmed. The mere violation of a technical rule has often been deemed sufficient for legal action and recovery. For example, small nail salons are being targeted for using the same bottle of nail polish on more than one customer and a motorcycle shop was sued for abbreviating the words "on approved credit" (OAC) on a print ad. This shift from traditional tort law requirements, such as proving actual injury, has contributed to an atmosphere that is most appealing to practitioners of the art of shakedown. Some law firms threaten small businesses with suits unless they settle to avoid exorbitant fees and costs and limit risk of an unjust, arbitrary action. Many of the businesses targeted by these unfair competition suits or claims are small, minority owned businesses guilty, at most, of minor, technical, or administrative violations, often unknowingl

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Did You Know?    
 
 
Alternative Dispute Resolution describes problem-solving processes

Alternative Dispute Resolution describes problem-solving processes that promote creative solutions to disputes that are unavailable in traditional dispute resolution forums. May include a specialist

 


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Latest news about legal cases in Michigan and nationwide:

KPMG to Pay $456 Million for Criminal Violations
IR-2005-83, Aug. 29, 2005

WASHINGTON — KPMG LLP (KPMG) has admitted to criminal wrongdoing and agreed to pay $456 million in fines, restitu...

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Committee To Present Adams Pro Bono Publico Awards
In recognition of outstanding commitment in providing volunteer legal services for the poor and disadvantaged in Massachusetts, Supreme Judicial Co...
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Racial Discrimination Damages Of $120,000
EEOC v. Jefferson Smurfit Corp.

In this Title VII suit, the Chicago District Office alleged that a white supervisor at the...

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Legal Terms

 


Today's Terms

Original jurisdiction

Definition:
The court in which a matter must first be filed.

Referral

Definition:
Follows cross-examination, and is conducted by the party who first examined the witness.

Declaratory judgment

Definition:
One which declares the rights of the parties or expresses the opinion of the court on a question of law, without ordering anything to be done.

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