Posts Tagged ‘California’

California regulation: it’ll knock the stuffing out of you

30-employee Woof ‘N’ Poof, which manufactures stuffed collector dolls and other novelty accessories in the northern California community of Chico for sale in Nordstrom and other stores, may soon call it quits [Debbie Cobb/KHSL via Richard Rider, Flash Report]:

[Owner Roger] Hart says a raise in minimum wage and workers compensation are just a couple of issues that have made it difficult to keep the business financially afloat here. Hart said, “The high cost of doing business in California coupled with ridiculous regulatory environment makes it virtually impossible to do business.” He says he has seen an 11% hike in payroll.

…A recent visit by an inspector with the Department of Consumer Affairs set the company back. The inspector from Sacramento cited him for having the wrong size font on the decorative pillow labels. He was told to take the labels out, or they would have his inventory seized. It was a costly fix.

Government is just another word for the things we do together, like threatening to seize pillow inventories with wrong-font labels.

Liability roundup

  • Mechanics of high-volume injury litigation: “A disgruntled former law firm employee spills secrets on a mass tort factory” [Paul Barrett, Business Week] More on chasing clients: new Chamber Institute for Legal Reform research finds 23 of top 25 Google key words linking ads to user searches are for personal injury law firms; TV advertising by lawyer is projected to reach $892 million in 2015, up 68% from 2008. Yet more: Daniel Fisher/Forbes (“San Antonio car wreck attorney” goes for $670 per click on Google), Tampa Bay Times (“Highly groomed attorney duo …shown moving in slow motion on courthouse steps to a hard rock beat”);
  • Flurry of other new papers by U.S. Chamber’s Institute for Legal Reform, many connected with its annual Legal Reform Summit, include one on how the trial bar has been successful at lobbying the Obama administration. Plus a new edition of “101 Ways to Improve State Legal Systems”;
  • In speech, Rudolph Giuliani recalls tort-law challenges he faced as NYC mayor [Corpus Christi Caller-Times]
  • A quarter century later, trial lawyers’ initiative to take revenge against insurer adversaries continues to harm California insurance customers [Ian Adams, “The troublesome legacy of Prop 103,” R Street Institute, paper in PDF, summary]
  • A story we’ve covered before: Mississippi attorney general Jim Hood and the flow of funds from and to private lawyers he hires [Steve Wilson/Mississippi Watchdog, quotes me]
  • Most New York counties have passed resolutions calling for reform of the state’s unique scaffold law [Lawsuit Reform Alliance of New York]
  • You’d think indictment of Mikal Watts, Texas law major-leaguer with friends in high D.C. places, would be playing bigger in the press [Tim Carney]

Environment roundup

Gov. Brown vetoes anti-arbitration bill

In a lawyer-stimulus move that incidentally trashed freedom of contract, the California legislature passed a bill that would have virtually banned arbitration of workplace disputes that has been agreed on in advance of a dispute. But California Governor Jerry Brown has now vetoed it, arguing that the research on the effects of arbitration is still inconclusive, that the state has means of regulating it short of a ban, and that the Supreme Court is currently considering in two cases whether California law already improperly restricts arbitration in violation of the Federal Arbitration Act, an objection that could be lodged against the new enactment as well. [Carl Larson, Saqui Law Group]

L.A. eateries adopt surcharge for employee health, get charged with price fixing

Trying, they said, to be responsible employers, a group of Los Angeles restaurants banded together and adopted a 3 percent surcharge on bills to help secure healthcare coverage for their employees. Now San Francisco attorney Daniel Sterrett — who does not deny that the surcharge is going toward the announced purpose of employee healthcare — has filed an intended class-action lawsuit saying the owners have violated California law against price-fixing. [CBS Los Angeles, ABA Journal]

Law enforcement for profit roundup

  • “Why Morristown officers seized the cars in the first place is unclear.” Maybe because it enabled an officer to pocket $6,000? [Tennessee: Watchdog] Louisiana town getting 87% of its revenue from traffic tickets has 188 people, 5 cop cars [Marshall Project via Balko] For second time, this time in Chicago case, former CEO of red light camera company cops a federal plea [Cyrus Farivar, Ars Technica]
  • Opposition from law enforcement shoots down asset forfeiture reform in California [Scott Shackford/Reason, more] Despite talk of being friendlier to forfeiture reform, Department of Justice fed talking points to reform opponents in California battle [TechDirt] “Most Americans don’t realize it’s this easy for police to take your cash” [Christopher Ingraham, Washington Post “WonkBlog”]
  • Other side of the ledger: how governments pay for claims against law enforcement [Joanna Schwartz, SSRN via TortsProf]
  • Louisville traffic school allows violators to get cases “dismissed without having to pay court costs… and generates revenue to operate the county attorney’s office” [Insurance Journal]
  • Lawsuit alleges private probation companies in Tennessee abusing power, free-marketers should be as worried as anyone else about misalignment of private, public incentives [Radley Balko, earlier]
  • Odd how feds can prevent someone resisting extradition from contesting asset forfeiture [Trevor Burrus/Cato, Ilya Somin on Kim Dotcom case]
  • Insurers often pool funds to support insurance fraud prosecution efforts, but critics say Travis County, Texas prosecutors are needlessly close to a single company [Texas Tribune]

Rating states on legal climates

“West Virginia courts have a well-deserved reputation for favoring plaintiffs, but the state’s Supreme Court may have gone too far this year when it said drug addicts who broke the law to obtain narcotics could sue the doctors and pharmacies who supposedly fed their addiction.” Rulings like that, writes Daniel Fisher, are one reason West Virginia perennially ranks at the bottom in the U.S. Chamber’s ranking of state legal climates, and did again this year. Louisiana, Illinois, and California are other cellar-dwellers, while Alabama and Texas, despite extensive reforms and the success of business-oriented candidates in many judicial races, also languish in the lower ranks with continuing problems such as the litigation atmosphere of east Texas [Lou Ann Anderson/Watchdog Arena] More: Bob Dorigo Jones. Related, from ALEC: State Lawsuit Reform.

College and offense-screening: a message from the White House

In light of President Obama’s (quite admirable) recent comments on college as a place for the open exchange of ideas, could his administration call off its rules pressuring colleges to adopt unconstitutional speech codes? [Hans Bader, Glenn Reynolds, USA Today] “University of California considering recognizing a ‘right’ to be ‘free from … expressions of intolerance'” [Eugene Volokh; regents go back to drawing board; Sarah McLaughlin/FIRE; AAUP] “Deciding who is eligible to complain about microaggressions is itself an act by which the majority imposes its will.” [Megan McArdle] And the New Yorker contributes a politically correct “Lord of the Flies.”

September 23 roundup