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1972 – 50 years of service to the commercial industrial retail real estate industry – 2022.


October 15, 2013

Another measure we have been supporting has been signed by Governor Brown. AB 227 (Gatto; D-Silver Lake) reforms Proposition 65 and will help shield businesses from some frivolous lawsuits. The bill allows business owners who receive notice of a technical Prop. 65 signage violation to fourteen days to get into compliance and pay a civil fine – instead of going to court. In certain cases, if a business complies, they also are protected from certain types of legal action and from the $2,500 per-day retroactive fines.

The author of the measure Assemblymember Gatto stated the following, “This bill won’t halt all Proposition 65 lawsuits, but will halt almost all unjust Proposition 65 lawsuits.”

The bill addresses one very avoidable cost that results from the practice of a handful of law firms in targeting businesses with drive-by lawsuits alleging they do not have adequate signage required by Proposition 65. These lawsuits can easily cost several thousand dollars to litigate, causing many small businesses to settle out of court whether or not they actually needed to have signage posted at their business establishments, or if they failed to realize signage was necessary in a good faith mistake.

We thank the Governor for signing this important measure. Click here to read the new law – AB 227 (Gatto).

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