Argument in Favor of Proposition 202

Proposition 202 limits what lawyers can take out of your pocket when you win a lawsuit that settles quickly. Along with Proposition 200 and Proposition 201, it'll stop unfair legal practices and runaway lawsuits from costing California more jobs and more money.

There are too many phony lawsuits in California. And in legitimate cases, lawyers often take too much, leaving victims too little.

In California, seven lawsuits are filed every minute of every working day--nearly one million every year. Why? Because close to one out of every five lawyers in America lives in California. In 1992, they pocketed $16.3 billion in fees.

With so many lawyers competing for business, it's inevitable that some file unnecessary lawsuits looking for a quick buck. They ruin our business climate and create a huge backlog in our courts. Proposition 202 takes away the incentives for filing phony lawsuits.

Proposition 202 also encourages faster settlements of legitimate cases, and puts more money in victims' pockets. Usually, lawyers who represent deserving victims are only paid if they win. Typically, they take between 30% and 40% of the award, plus expenses. That's very steep, but lawyers argue that if they work for several years on a case, they deserve a big fee.

That may be true, but some cases settle quickly. The lawyers do little for their clients except write letters demanding payment. Do they still deserve big fees? No. But that's what many take. It's not fair because the dollars come right out of the pockets of the victims.

Proposition 202 protects legitimate victims. Here's how:

• If a case settles quickly (within 60 days), your lawyer can take no more than 15% as a fee.
• You, not the lawyer, decide whether or not to accept a settlement.
• If you reject an early settlement, or if no settlement is offered, your lawyer may be paid for the additional work required. In that event, your lawyer can charge whatever you and he have agreed on. However, the 15% limit still applies to the amount originally offered.
• Lawyers failing to inform their clients about this system are severely punished.

This simple proposition solves a number of problems in California:

• Legitimate claims will be settled quicker. Wrongdoers will make fair settlement offers (to avoid legal expenses) because victims will be more likely to accept those offers if lawyers' fees are limited to 15% .
• Our clogged court system can handle legitimate cases faster.
• More money will go to deserving victims and less to lawyers.
• Lawyers trying to get rich quick won't be as tempted to file frivolous lawsuits hoping to settle fast and walk away with 30% to 40%. This will reduce the number of phony lawsuits damaging our business climate.

Proposition 202 does nothing to discourage the serious and legitimate cases that deserve their day in court. Good, honest lawyers will still represent genuine victims.

Proposition 202 is good for consumers, good for victims, and good for California. THE ONLY LOSERS ARE THE LAWYERS.

MARY ANDERSON
Executive Director, California Business Roundtable

GARRY DELOSS
Former Executive Director, California Consumer Organization

THOMAS PROULX
Author of Quicken personal finance software