How business will benefit by AB1208

Posted on May 29, 2011


The nice thing about being a private business is that not only do you get to look at legislation that might affect you but there are organizations, like the California Chamber of Commerce that will take up causes on your behalf. 

Oftentimes scratching the surface is all it takes to understand that what appears to be a pro-business position on legislation was bought and paid for. These positions tend to favor one business position over all others. It is the logic behind the position that often gives it away. Sometimes the chamber gets it right and sometimes the chamber misses the mark.  The California Chamber of Commerce has added AB1208 to its “Job Killers” list for 2011 saying that the bill will result in inflated liability costs.

AB 1208 (C. Calderon; D-Montebello) Court Inefficiency
Creates uncertainty, inefficiency and unpredictability for litigants, further aggravating California’s reputation as a bad place to do business, by decentralizing control of trial court funds. This bill was passed on for a vote by the full Assembly.

That’s the hype promoted by Deloitte because the jobs that will be lost are theirs. And now the facts for businesses.

The chamber missed the memo that courthouses were being shut down, employees were being laid off and courthouse hours were being curtailed. They also missed the memo that indicates case backlogs are increasing and access to justice is being sacrificed. They missed the memo that long court lines are getting longer impacting worker productivity, thereby impacting business directly. They missed the memo on how much justice that is delayed really costs business in California.

When the local courthouse is closed down due to the AOC taking local trial court money to finance a 3 billion dollar bridge to nowhere, both businesses and workers must spend more time traveling to a court that remains open.

Uncertainty, inefficiency and unpredictability for litigants is a situation created by the Administrative Office of the Courts when they choose to raid trial court funds for central politburo boondoggles. This virtual collapse of the California justice system, this uncertainty, this inefficiency and the unpredictability for litigants was not the trial courts doing. However, with AB1208 being passed, this uncertainty, inefficiency and unpredictability will be reduced when the politburo is no longer permitted to raid trial court operating funds.

The case above is a case where the chamber has chosen one business, Deloitte, over all others in foisting a position that most businesses do not agree with. This is where the chamber has got it wrong.