Re: [Paddlewise] Design copies

> From: "Peter Treby" <ptreby_at_ozemail.com.au>

> Jackie: The examples you gave of shakedown suits
> as at
> http://www.bizjournals.com/sacramento/stories/2004/02/02/editorial3.html
> seem to be a particular problem in California, not
> a widespread situation, thankfully. 

Frivolous lawsuits are a problem in more states than just
California.  The method referenced here is unique to California
because of a state code (17204).

> Reading these
> examples, I wondered why the small businesses
> threatened with frivolous actions, or their
> insurers, don't just get some spine and stare down
> the threat.

It takes more than spine.  It takes a lot of money and often
these small businesses don't have it.  In the U.S., a frivolous
lawsuit can be thrown out of court without the plaintiff having
to compensate for the costs to either the court or the defendent.
The cost to the pro bono plaintiff's lawyer is his/her own time 
and filing fees. However, the defendent must pay attorneys' fees 
to fight the claim which can and sometimes does bring tremendous 
financial burden to the defendent.  

> Hopefully this situation is not
> directly related to any kayak manufacturer or
> retailer in California.
> Have you heard of anyone
> involved in the commercial side of canoes/kayaks
> facing a "shakedown" suit?  

 
Here's the law: 

http://caselaw.lp.findlaw.com/cacodes/bpc/17200-17210.html

     17204.  Actions for any relief pursuant to this chapter shall be
     prosecuted exclusively in a court of competent jurisdiction by the
     Attorney General or any district attorney or by any county counsel
     authorized by agreement with the district attorney in actions
     involving violation of a county ordinance, or any city attorney of a
     city, or city and county, having a population in excess of 750,000,
     and, with the consent of the district attorney, by a city prosecutor
     in any city having a full-time city prosecutor or, with the consent
     of the district attorney, by a city attorney in any city and county
     in the name of the people of the State of California upon their own
     complaint or upon the complaint of any board, officer, person,
     corporation or association or by any person acting for the interests
     of itself, its members or the general public.

Pretty amazing, huh.  Easy to be a target for those out shooting at
targets.

> Are shakedown suits
> possible anywhere else in the US? 

Depends on your meaning of shakedown.  Frivolous lawsuits are
filed throughout the U.S. in the hopes the defendent will settle
out of court (concession could be monetary or other) rather 
than pay the costs associated with fighting it.   

btw, I've been notified of settlements "in my favor" in more than 
one class action case where I never sought participation.  I've 
never collected a dime.  Maybe it's just me but I don't like being
an automatic plaintiff to a lawsuit without my consent.

 
Cheers,

Jackie
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