Vince Fong, U.S. Representative for California’s 20th Congressional District, has raised concerns about the impact of frivolous lawsuits on small businesses. In a public newsletter, Fong said that these businesses are targeted by plaintiff attorneys due to laws that encourage quick settlements instead of actual justice.
“They are targeted by abusive plaintiff attorneys that squeeze money out of them because our laws incentivize quick settlements over the pursuit of actual justice,” said Fong, U.S. Representative of California’s 20th Congressional District (D).
Frivolous lawsuits are reportedly affecting Central Valley small businesses significantly. Many owners feel compelled to settle quickly rather than endure lengthy and costly court battles. According to the San Joaquin Valley Sun, there is a growing call for legislative action to protect businesses from predatory legal tactics, with many business owners viewing these settlements as a necessary survival strategy.
A survey conducted by Californians Against Predatory Lawsuits found that nearly 90% of California business owners facing legal threats from such lawsuits opt for out-of-court settlements. The organization indicates that these settlements often lead to substantial financial strain on small businesses across the state, as they aim to avoid the high costs and uncertainties associated with litigation.
California’s civil litigation system ranks among the fastest in the nation, which adds pressure on defendants to agree to quick settlements rather than engage in prolonged court cases. According to Yahoo News, this swift pace contributes to an environment where quick settlements are more prevalent than full trials.
Fong was born on October 24, 1979, in Bakersfield and assumed office as U.S. Representative on June 3, 2024, after serving several terms in the California State Assembly. A Republican, he previously served as district director for Congressman Kevin McCarthy before his election to the Assembly in 2016.
