Special Interest Placed Above Public Interest

California’s Assembly Judiciary Committee this week voted against consumers by refusing to extend to them basic protections should they need to hire a lawyer on a contingency fee.

At a committee hearing, sponsors of the bipartisan "Legal Consumers Protection Act" were asking legislators to pass a bill that would require lawyers advertising "no fee unless you win" to put a disclaimer in the ad saying clients, whether successful or not will have to pay expenses in addition to the fee for winning.

"What you don't know can cost you when you hire a lawyer on a contingent fee basis," said Adrienne "Andy" Kotner, President of San Diego County Citizens Against Lawsuit Abuse (CALA), which sponsored the Legal Consumers’ Protection Act. "We felt injured consumers deserve simple, basic protection to ensure they’re treated fairly and not victimized a second time by their own lawyer. Apparently, Assembly member Vargas felt different."

The bill, AB 2939, authored by Anthony Pescetti (R – Rancho Cordova), Lou Papan (D – Millbrae) and John Campbell (R – Irvine) also required up-front estimates of the likelihood of success in the case and the number of hours to be worked. Other requirements included regular status reports on expenses and the status of the case, and a statement at the end of the case showing the lawyer’s total fee in terms of the hourly rate.

Assemblymember Vargas, who represents Chula Vista, National City and other parts of San Diego voted against the measure, despite repeated clarification that the bill did nothing to limit, cap, or prohibit contingency fees and simply required lawyers to provide more information to their clients. The bill ultimately failed with only three "AYE" votes, four short of the seven needed to pass.

According to the Civil Justice Association of California, California’s personal injury lawyers lobby, which opposed the bill, has donated more than $11,000 to Assemblymember Vargas’ campaign.

CALA, which does not contribute to political campaigns, is a nonprofit, grassroots public education organization. The group’s mission is to serve as a watchdog over the legal system and those who abuse it for unfair gain.

# # #

This page was last updated on 04/19/05