ATTORNEY-CLIENT FEE ARRANGEMENTS. SECURITIES FRAUD. LAWSUITS. INITIATIVE STATUTE. Prohibits restrictions on attorney-client fee arrangements, except as allowed by laws existing on January 1, 1995. Prohibits deceptive conduct by any person in securities transactions resulting in loss to pension, retirement funds, savings. Imposes civil liability, including punitive damages, for losses. Authorizes class actions, derivative suits; adds presumption fraudulent acts affected market value of security. Prohibits indemnification of officers found liable for fraudulent acts by business entities, but may purchase insurance to cover liability. Declares measure conflicts with other ballot measures that restrict attorney fees or securities fraud actions. Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: Potential increase in court-related costs to state and local governments of an unknown, but probably not significant, amount. Potential increase in revenue to the state of an unknown, but probably not significant, amount.
Popular Vote Results
Y: 2414216; A: 25.6; N: 6997003; B: 74.4
Lois Wellington, President, Congress of California Seniors; Kenneth E. Wilson, President, Retired Public Employees Association of California; Ramona E. Jacobs, Victim, Charles Keating's Lincoln Savings & Loan Fraud
Larry McCarthy, President, California Taxpayers Association; Martyn B. Hopper, State Director, National Federation of Independent Business/California; Kirk West, President, California Chamber of Commerce
Rebuttal Against Author
John R. (Jack) Quatman, Senior Prosecutor, Fraud Division; James Kenneth Hahn, Los Angeles City Attorney
Attorney-Client Fee Arrangements. Securities Fraud. Lawsuits. California Proposition 211 (1996).