Calif. court OKs countersuit in “shakedown” case

Just over a year ago, following numerous scandals about law firms’ filing of mass shakedown suits based on California’s s. 17200 unfair-competition law (UCL), the state’s voters curtailed somewhat the law’s extortive potential by requiring that actual harm to a complainant be shown. Last month, a California appeals court gave the nod to a second, […]

Just over a year ago, following numerous scandals about law firms’ filing of mass shakedown suits based on California’s s. 17200 unfair-competition law (UCL), the state’s voters curtailed somewhat the law’s extortive potential by requiring that actual harm to a complainant be shown. Last month, a California appeals court gave the nod to a second, potentially powerful way of restraining unwarranted s. 17200 suits, namely countersuits from outraged defendants. As Kimberly Kralowec notes (Dec. 20), “the Court of Appeal held that the litigation privilege did not bar a suit against lawyers accused of filing Trevor-like ‘shakedown’ suits under the former UCL. [The Trevor Law Group was the most notorious filer of shotgun UCL suits — ed.] In a now-familiar irony, the lawyers were themselves sued for violating the UCL, as well as for intentional interference with prospective economic advantage.” The case (Word document format) is American Products Co. v. Law Offices of Geller, Stewart & Foley, LLP.

One Comment

  • Stupid 17200 Claim of the Day

    (That’s California’s “Unfair Competition Law,” Cal. Bus. & Prof. Code 17200).
    There haven’t been many of these since Prop 64 passed. But in Pizarro v. Lamb’s Players Theatre, 2006 WL 163612 (Cal.App. 4 Dist. J…