Attorney-Client Fee Arrangements. Securities Fraud. Lawsuits.
Summary: Prohibits restrictions on fee arrangements attorneys may make with clients, except those existing on January 1, 1995. Allows courts to prohibit illegal or unconscionable fees. Prohibits deceptive conduct in purchase or sale of securities resulting in loss to institutional or personal retirement funds, savings. Imposes civil liability, including punitive damages, for losses. Authorizes class actions, derivative suits; declares "fraud on market" doctrine applicable. Business entities cannot indemnify officers found liable for specified deceptive practices, but may purchase insurance covering such liability. Declares measure conflicts with ballot measures restricting attorney fees or securities fraud actions.
Fiscal Impact: Probably minor net fiscal impact on state and local governments.
A YES vote on this measure means: The law will be broadened to make it easier for an individual with retirement investments to sue for securities fraud. Also, the Legislature could no longer change the laws concerning any attorney-client fee arrangements.
A NO vote on this measure means: Current law regarding securities fraud will remain unchanged. Also, the Legislature could still change the laws concerning any attorney-client fee arrangements.
The State Ballot Pamphlet, published by the Secretary of State, features the text, fiscal analysis, and pro/con arguments.
Official Contact Information
Proponents: Lois Wellington
Contact in Support: Sean Crowley
Citizens for Retirement Protection and Security
Contact in Opposition: Taxpayers Against Frivolous Lawsuits
915 L Street, #C307
Sacramento, CA 95814
Fax: (916) 774-0429
Related Web Sites
Support: Citizens for Retirement Protection and Security Opposition: Taxpayers Against Frivolous Lawsuits Neutral: None available to date.
This initiative was placed on the ballot through petition of the voters.
Source information for this material is available.
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