Tensions Rise in California’s "Tort Wars": SB 799 Rejected Amid Lobbying Battles
By Dan Walters, CalMatters
Sacramento, CA — The ongoing "tort wars" in the California state Capitol have once again ignited fierce conflicts between personal injury attorneys and business groups over civil lawsuit regulations. This perennial clash escalates as both sides strive to reshape tort laws in their favor, either expanding or contracting the scope of actionable civil wrongs.
Historically marked by contentious negotiations, one of the notable moments occurred in 1987 with the controversial "napkin deal," where then-Assembly Speaker Willie Brown brokered a temporary truce among warring factions over tobacco regulations. Despite periodic successes for each side, the battles persist due to the immense financial stakes involved, with lobbyists and campaign contributions fueling the fight.
Recently, the passage of Senate Bill 799, proposed by Senator Ben Allen, aimed to extend California’s False Claims Act to high-dollar tax disputes, enabling lawyers to pursue tax scofflaws and claim fees for successful plaintiffs. This bill quickly garnered support from trial lawyers, labor unions, and government officials, but met significant opposition from business and insurance interests.
Despite initially clearing the Senate Judiciary Committee, SB 799 faced substantial resistance in the Senate Revenue and Taxation Committee, ultimately failing to advance. Opponents claimed the bill threatened to "unleash shakedown lawsuits" against business owners, underscoring the ongoing tensions regarding tort reform.
In a coincidental twist, Los Angeles Mayor Karen Bass visited Sacramento during the SB 799 debate, highlighting the city’s urgent budget deficit, attributed in part to soaring liability lawsuit payouts. She, along with city attorney Hydee Feldstein Soto, advocated for limiting damages in municipal lawsuits, prompting questions about the League of California Cities’ earlier support for SB 799.
As California grapples with its tort laws, the rise and fall of SB 799 exemplify the precarious balance between legal advocacy and economic interests in the state.
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