DA's Lawsuit Against Potter Handy Law Firm Dismissed (extortion is okay)

sfgate.com

A state court judge on Monday dismissed a high-profile lawsuit that former San Francisco District Attorney Chesa Boudin and his Los Angeles counterpart, George Gascon, brought against the San Diego law firm Potter Handy LLC.

The civil case, filed April 11 in San Francisco Superior Court, accused Potter Handy and 15 of its lawyers -- including name partners Mark Potter and Russell Handy -- of violating California's Unfair Competition Law by bringing fraudulent and deceitful litigation under the Americans with Disabilities Act.

The filing alleged that the firm schemed to avoid state court rules designed to rein in serial ADA plaintiffs by filing their new cases in federal court where the state rules did not apply. The problem, according to the district attorneys, was that litigants in federal court can only bring suit when they have proper legal "standing."

The district attorneys asserted that many -- perhaps most -- of Potter Handy' clients lied to make it appear that they had standing, and that even though the firm allegedly knew that, Potter Handy filed the cases anyway.

MORE: https://www.sfgate.com/news/bayarea/article/Da-s-Lawsuit-Against-Potter-Handy-Law-Firm-17408200.php

HIGHLIGHTS & BACKGROUND (from the link):

• The ADA is enforced by disabled individuals suing to correct violations.

• Over the past 32 years since the ADA was enacted, a cottage industry of plaintiffs (and their lawyers) has developed to litigate cases.

• Since 2010, more than 36,397 ADA lawsuits had been filed in federal court in California.

• Ten plaintiffs filed 85 percent of those cases -- they were all represented by law firm Potter Handy.

• Some plaintiffs, it has been reported, never enter or interact with the business being sued.

• The defendant is generally a small business, like a mom and pop operation.

• Most of the cases settle for between $10,000 and $20,000 apiece—it's cheaper for the businesses to settle than fight the lawsuit.

• Potter Handy was filing an average of three new suits a day, seven days a week

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The ADA is necessary, and serious violations do need to be corrected, but it's not a free pass for blood-sucking law firms to extort money from small business. According the link, California's DAs have pledged to find a way to stop law firms from this profiteering practice.