GOVERNOR SIGNS CALCHAMBER-SUPPORTED BILL PROTECTING BUSINESSES FROM MERITLESS LAWSUITS
A California Chamber of Commerce-supported bill that protects businesses from meritless lawsuits was signed by Governor Arnold Schwarzenegger last week.
SB-367 (Negrete-McLeod; D-Chino) allows businesses to continue offering discounts and other incentives to consumers negatively affected by these challenging economic times without the fear of litigation.
Specifically, the bill helps prevent litigation against California businesses that give discounts to consumers who have lost jobs or pay in the economic downturn by clarifying that such discounts are not a form of illegal discrimination under the State's Unruh Civil Rights Act.
Business groups supporting the new law agreed that it is imperative that these businesses are protected from unwarranted lawsuits brought by lawyers inappropriately seeking to benefit from the generosity and compassion of businesses in this economic downturn. SB-367 simply clarifies current law, establishing that it is not a violation of the Unruh Civil Rights Act when a business provides discounts to people who have suffered a loss or reduction in employment.
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Sincerely,Richard S. RosenbergPartnerBRG&S, LLP |