Los Angeles has claimed the top spot on the American Tort Reform Foundation’s (ATRF) annual list of “Judicial Hellholes.”  The Report claims that “lawsuit abuse in Los Angeles . . . has propelled the jurisdiction to the very top of the list.”  According to the ATRF, the plaintiffs’ bar resorts to various litigation tactics that drive Los Angeles’ notorious nuclear verdicts (i.e., those exceeding $10 million), including:

  • “Anchoring tactics” by lawyers who plant extremely high amounts in jurors’ minds to set a base dollar amount for a pain and suffering award;
  • Third-party litigation financing, which seeks to maximize profit and discourage reasonable settlement in pursuit of larger damage awards at trial; and
  • Use of the so-called “reptile theory”—a tactic that manipulates jurors into deciding cases based on raw emotion and perceived threats rather than evidence presented at trial.  For example, some courts routinely permit evidence of a company’s general policies, practices, or alleged lack of compliance with government regulations, even if only remotely related to the plaintiff’s case, in order to portray the business as a threat to public safety.

Other highlights include:

  • Abusive ADA litigation in Los Angeles, which often targets small businesses that lack the resources to defend themselves and are more likely to settle;
  • A flood of lawsuits under the recently “reformed” Private Attorneys General Act (PAGA), which has done little to help workers in cases in which the bulk of the proceeds paid by employers go to plaintiffs’ lawyers;
  • An increase in environmental litigation, which has become an active growth area for the trial bar, especially in California; and
  • Los Angeles courts leading the charge to significantly curtail the availability of arbitration as an efficient and effective means of resolving claims. 

Economic Impact Data:

According to the ATRF’s report, lawsuit abuse and excessive tort costs wipe out billions of dollars of economic activity annually. California residents pay a “tort tax” of $2,458.33 (fifth highest in the nation) and 829,255 jobs are lost each year according to a recent study by The Perryman Group.  In Los Angeles, the numbers are even worse.  Los Angeles residents pay a “tort tax” of $3,658.00 and over 407,500 jobs were lost.  If California enacted specific reforms targeting lawsuit abuse, the state would increase its gross domestic product by $95.8 billion.

Read the ATRF’s full report here.

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Photo of Tony Oncidi Tony Oncidi

Anthony J. Oncidi is the Co-Chair Emeritus of the Labor & Employment Law Department and heads the West Coast Labor & Employment group in the firm’s Los Angeles office.

Tony represents employers and management in all aspects of labor relations and employment law…

Anthony J. Oncidi is the Co-Chair Emeritus of the Labor & Employment Law Department and heads the West Coast Labor & Employment group in the firm’s Los Angeles office.

Tony represents employers and management in all aspects of labor relations and employment law, including litigation and preventive counseling, wage and hour matters, including class actions, wrongful termination, employee discipline, Title VII and the California Fair Employment and Housing Act, executive employment contract disputes, sexual harassment training and investigations, workplace violence, drug testing and privacy issues, Sarbanes-Oxley claims and employee raiding and trade secret protection. A substantial portion of Tony’s practice involves the defense of employers in large class actions, employment discrimination, harassment and wrongful termination litigation in state and federal court as well as arbitration proceedings, including FINRA matters.

Tony is recognized as a leading lawyer by such highly respected publications and organizations as the Los Angeles Daily JournalThe Hollywood Reporter, and Chambers USA, which gives him the highest possible rating (“Band 1”) for Labor & Employment.  According to Chambers USA, clients say Tony is “brilliant at what he does… He is even keeled, has a high emotional IQ, is a great legal writer and orator, and never gives up.” Other clients report:  “Tony has an outstanding reputation” and he is “smart, cost effective and appropriately aggressive.” Tony is hailed as “outstanding,” particularly for his “ability to merge top-shelf lawyerly advice with pragmatic business acumen.” He is highly respected in the industry, with other commentators lauding him as a “phenomenal strategist” and “one of the top employment litigators in the country.”

“Tony is the author of the treatise titled Employment Discrimination Depositions (Juris Pub’g 2020; www.jurispub.com), co-author of Proskauer on Privacy (PLI 2020), and, since 1990, has been a regular columnist for the official publication of the Labor and Employment Law Section of the State Bar of California and the Los Angeles Daily Journal.

Tony has been a featured guest on Fox 11 News and CBS News in Los Angeles. He has been interviewed and quoted by leading national media outlets such as The National Law JournalBloomberg News, The New York Times, and Newsweek and Time magazines. Tony is a frequent speaker on employment law topics for large and small groups of employers and their counsel, including the Society for Human Resource Management (“SHRM”), PIHRA, the National CLE Conference, National Business Institute, the Employment Round Table of Southern California (Board Member), the Council on Education in Management, the Institute for Corporate Counsel, the State Bar of California, the California Continuing Education of the Bar Program and the Los Angeles and Beverly Hills Bar Associations. He has testified as an expert witness regarding wage and hour issues as well as the California Fair Employment and Housing Act and has served as a faculty member of the National Employment Law Institute. He has served as an arbitrator in an employment discrimination matter.

Tony is an appointed Hearing Examiner for the Los Angeles Police Commission Board of Rights and has served as an Adjunct Professor of Law and a guest lecturer at USC Law School and a guest lecturer at UCLA Law School.

Photo of Philippe A. Lebel Philippe A. Lebel

Philippe (Phil) A. Lebel represents employers in all aspects of employment litigation, including wage and hour, wrongful termination, discrimination, harassment, retaliation, defamation, trade secrets, and breach of contract litigation, in both the single-plaintiff and class- and/or representative-action context, at both the trial and…

Philippe (Phil) A. Lebel represents employers in all aspects of employment litigation, including wage and hour, wrongful termination, discrimination, harassment, retaliation, defamation, trade secrets, and breach of contract litigation, in both the single-plaintiff and class- and/or representative-action context, at both the trial and appellate levels, as well as before administrative agencies.

In addition to his litigation work, Phil regularly advises clients regarding compliance with federal, state and local employment laws, and assists a variety of companies and financial firms in evaluating labor and employment issues in connection with corporate transactions. Phil also has experience assisting employers with sensitive employee investigations, cutting edge-trainings, pay equity analyses and comprehensive audits of employment practices.

Phil has assisted clients in a wide array of sectors including in the biotech, education, entertainment, fashion, financial services, fitness, healthcare, high-tech, legal services, manufacturing, media, professional services, retail, sports, and staffing industries, among others.

Phil regularly speaks on emerging issues for employers and has been published or quoted in Law360, the Daily JournalThe Hollywood ReporterBusiness Insurance, and SHRM.org regarding a variety of labor and employment law topics.

Before law school, Phil was an intern with the National Gay and Lesbian Task Force and the Gay and Lesbian Victory Fund, during which he assisted on political campaigns in Alabama and Georgia. Phil is a former member of the Board of Directors of the AIDS Legal Referral Panel.

Photo of Jennifer McDermott Jennifer McDermott

Jennifer McDermott is an associate in the Labor & Employment Law Department and a member of the Employment Litigation & Arbitration Practice Group, the Wage and Hour Practice Group, and the Class and Collective Action Practice Group. Jennifer defends employers in a variety…

Jennifer McDermott is an associate in the Labor & Employment Law Department and a member of the Employment Litigation & Arbitration Practice Group, the Wage and Hour Practice Group, and the Class and Collective Action Practice Group. Jennifer defends employers in a variety of labor and employment matters in both state and federal courts, including wage and hour single-plaintiff lawsuits and class, collective, and Private Attorneys General Act (PAGA) representative actions. In addition to her wage and hour work, Jennifer defends employers in single-plaintiff wrongful termination, discrimination, harassment, and retaliation cases, and in employment arbitrations. Jennifer is also a contributor to Proskauer’s California Employment Law Blog.

Jennifer received her B.A. from UCLA, where she graduated summa cum laude and was elected Phi Beta Kappa, and she earned her J.D. from UCLA School of Law. While in law school, Jennifer completed a judicial externship for the Honorable Richard A. Paez of the U.S. Court of Appeals for the 9th Circuit. She also served as a legal writing advisor to first-year students and worked as a legal advocate at the Lanterman Special Education Law Clinic. Jennifer received a Dean’s Merit Scholarship, the B. Epstein and C. Kim Tax Law Scholarship, and two Masin Family Academic Excellence Gold Awards for the highest grade in Legal Research & Writing and Disability Law.

Jennifer was selected to be a Protégée for Proskauer’s Women’s Sponsorship Program, an initiative for high-performing, midlevel associates that champions future leaders.  She was also selected to participate in Starbucks Diversity Mentorship Program and previously participated in Proskauer’s Mentorship Circle Program, both of which are programs designed to enhance the development of diverse associates.