Wednesday, July 28, 2010

No, I've never been in this store before; even so, I'm suing you

"Shakedown" lawsuits against businesses have a new champion: Florida Democratic Rep Alan Grayson.

The lawmaker from Orlando wants to import to the District of Columbia a scheme that allowed lawyers in California to run a litigation protection-racket against mom-and-pop businesses.

In a case now before D.C.'s local Court of Appeals, Grayson is asking to have the District's consumer protection ordinance interpreted—or, rather, misinterpreted—to permit lawsuits against businesses even if the plaintiff didn't suffer any injury.

In other words, this self-described "progressive Democrat" is trying to subvert a key safeguard against frivolous lawsuits: The requirement that the plaintiff show tangible "standing," including harm caused by the defendant's conduct.

California's disastrous experiment with gutting the rules of standing should flash warning signals to the judges who are considering Grayson's case—and to the D.C. business owners and residents who would be the ultimate losers if he wins.

California's Unfair Competition Law was a classic example of a consumer protection law that didn't help consumers nearly so much as it enriched ethically challenged attorneys. Lawyers could sign up basically anyone as a plaintiff, whether or not the person had ever patronized the business being sued, much less been harmed by it. Thousands of other uninjured individuals would then be added to the suit, in a class action-style scheme.

The main goal? To force the business to settle.

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