A Tax You May Not Know You're Paying

Californians are paying over $2,500 each year in what's called a "tort tax." Bret and Veronica spoke to Victor Gomez, executive director of California Citizens Against Lawsuit Abuse.

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Episode Transcript

Speaker 1 (00:00):
We're paying about twenty five hundred dollars each in a
torte tax every year. Represents the hidden costs associated with
all the lawsuits that are filed.

Speaker 2 (00:08):
Joining us now on the Cocoa News liveline is the
executive director of California Citizens Against Lawsuit Abuse, Victor Gomez. Victor,
thank you for joining us in San Diego's morning News.

Speaker 3 (00:18):
Yeah, absolutely, pleasure, good to be with you both.

Speaker 2 (00:20):
Let's start off at the beginning. What is a torte tax?

Speaker 3 (00:23):
Well, look, I mean everyone knows that housing prices, gas prices,
grosser prices, everything's expensive these days, but most Californians don't
actually realize that there's another hitting costs. And that's what
economists call it tort tax. It's not a receipt, it's
not something that you're going to see come in the
mail as an invoice. It's something that's wrapped into everything
from your state income taxes to your everyday purchases. And

(00:46):
really it all goes back to one thing, and that
is rebulous lawsuits. Whether we're talking about these accessibility lawsuits,
ADA lawsuits, private Attorney General Act lawsuits, props sixty five lawsuits.
We end up paying all of that right through again insurance,
higher prices, higher income taxes, and that's what we call
essentially a tour tax.

Speaker 1 (01:06):
So in other words, if everybody's suing candy stores, then
the candy prices are going to go up because the
owners are having to pay court costs, so they're having
to pay possibly settlements.

Speaker 3 (01:17):
Absolutely, Ronie Bill, Look, I mean, I've spent seventeen years
in the franchise industry. This is why I'm so focused
on trying to get the state legislature, the attorney General,
the governor to make some changes here in California. As
a franchiseee somebody again that employed hundreds of people generally,
you know, ninety percent of them were sixteen to twenty

(01:38):
one years old. I was proud of that. I was
proud that I could put these kids to work, provide
a lot of teenagers an opportunity to work after school.
But I'll tell you right now, I was hit by
a couple of EIGHTYA lawsuits and for really some crazy reasons.
One of them happened to be the parking stall in
front of the restaurant. So it was actually the original

(01:58):
blue that is required through Ada. But unfortunately, over time
it fades well, one of these frivolous attorneys that's just
out here trying to everybody left and right. If they
see that they're going to take that opportunity, well, guess
what that's going to equate to me having less money
to spend, so one less person I could hire.

Speaker 2 (02:16):
We're speaking with Victor Gomez, the executive director of California
Citizens Against Lawsuit Abuse. You mentioned trying to get the
attention of lawmakers and the governor to try and curb
the abuse of a so called tortax. Are there solutions
there are?

Speaker 3 (02:31):
You know, and I'm happy, really happy to share that
with you both today. I mean, look, we've worked really hard.
California just continues to be the stomping ground when it
comes to these eighty eight lawsuits. A third of all
nationwide ADA lawsuits are in California, and that number continues
to increase. Last year, thanks to Senator Roger Niello out

(02:52):
of the Sacramento area, he submitted what we call an
Ada Curing Bill SB eighty four that allows businesses, before
you get suit, you have ninety days to fix the issue.
And we think, okay, that makes sense, right. Unfortunately, we're
in the second year of that bill, and Assembly Member
oshklera at A San Jose, who chairs the Judicial Committee
for the Assembly, who takes a ton of contributions from

(03:13):
the trial bar by the way, has decided not to
hear the bill. Has said, I do not want this
bill coming up because my friends, the trial attorneys are
going to be hurt by this, are not going to
be able to do these frivolous lawsuits. So sorry, I'm
not going to hear it. We're putting pressure, of course,
on that committee to try to get that bill heard,
and we're hoping that it is scheduled before this may deadline.

Speaker 2 (03:32):
Well, the eighty eight does a lot of good, but
at the same time it sounds like you guys are
trying to meet middle ground.

Speaker 3 (03:38):
We are. And you know, the good thing Brett about
this is that in a bill like SB eighty four
is that it brings us all together. We are fully
supportive of the Americans with Disabilities Act, and so this
bill actually would encourage you to fix the issue. The
problem we have with these frivolous ADA lawsuits right now
is you could settle for five ten thousand dollars with
that attorney, but it never fixes the ramp. Never fix

(04:00):
the park. Install never fixes the issue in the bathroom.
That's what the attorneys want. They don't want you to
have accessibility. They want you to not have it. That
way they could sue, and it really doesn't help the
business and again doesn't help the person in need.

Speaker 1 (04:14):
All Right, this has been really interesting. Thank you so
much for joining us today.

Speaker 3 (04:17):
Absolutely, Ronica Brett, thank you very much. Really appreciate the
opportunity to get and be with you.

Speaker 1 (04:21):
All Right, We're been talking to Victor Gomez, executive director
of California Citizens Against Lawsuit Abuse,