The following is not meant to be legal advice.
In Californians for Disability Rights v. Mervyn’s LLC, 39 Cal. 4th 223 (Cal. 2006), the California Supreme Court enforced Proposition 64’s limitations on who can sue under California’s Unfair Competition Statute.
California’s Unfair Competition Law (UCL), which plaintiffs’ lawyers used to bring overtime and discrimination claims, was narrowed significantly by the California Supreme Court. The plaintiff, a non-profit corporation, sued on behalf of the general public for alleged violations of disability law related to pathways and fixtures in a department store. The department store allegedly did not permit adequate access for persons using mobility aids (e.g., wheelchairs, scooters, crutches and walkers). The plaintiff did not claim to have suffered any harm as a result of the department store’s conduct.
The store prevailed in the trial court and while the plaintiff’s appeal was pending, Proposition 64 became effective. The store moved to dismiss the appeal, arguing that the plaintiff no longer had standing to continue the litigation.
The Supreme Court agreed to hear the case. The Supreme Court held that Proposition 64’s limitation that UCL claims be brought only by people who have suffered actual injury (in the form of lost money or property) as a result of unfair competition applied to cases pending at the time Proposition 64 took effect even if the case was on appeal..
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