Consumer Protection Attorneys Fees

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STANDING UP FOR CONSUMERS 2014 SESSION: ATTORNEY GENERAL REQUEST LEGISLATION Office of the Attorney General BOB FERGUSON CONSUMER PROTECTION 1125 Washington St. SE PO Box 40100 Olympia, WA 98504 ATTORNEYS FEES 360-753-6200 www.atg.wa.gov OBJECTIVE OFFICE CONTACTS: Protect taxpayers and equalize the playing field for Washington Mike Webb consumers by bringing Washington law on attorneys’ fees in line Policy & Legislative Analyst with other states. [email protected] Ellen206-464-7744 Austin Hall PROBLEM Policy Analyst/Outreach Spec. only state in the nation [email protected] 206-389-3856 Washington is the responsible for paying attorneys’ fees when it does not prevail in a government enforcement action under the SUPPORT Consumer Protection Act. EDITORIAL Washington’s outlier status creates an unlevel playing field, putting • The Seattle Times Washington’s consumers atdo an not unfair disadvantage relative to private • The Everett Herald plaintiffs. In Washington, private plaintiffs who sue and lose a claim under the HOUSE• The Olympian Consumer Protection Act pay attorneys’ fees to the defendant. Not so Jay Rodne (R-5) for Washington state taxpayers represented by the Attorney General’s Office. Jeff Morris (D-40) Current law creates significant risk for taxpayers. Defendants can hire large Norma Smith (R-10) law firms who assign multiple attorneys at high billing rates. Whenever the Jamie Pedersen (D-43) Attorney General’s Office pursues a case againstState such v. Pacific a defendant, Health Center, it faces Terry Nealey (R-16) the specter of large attorneys’ fees – even for a purely technical “win” on a Roger Goodman (D-45) Inc. Tina Orwall (D-33) single claim by a defendant. For example, in Susan Fagan (R-9) (2006,) the state pursued action against a defendant who was practicing Norm Johnson (R-14) medicine without a license. The state wonmedicine at a trial level, but the Appeals Paul Harris (R-17) Court ruled that while practicing law without a license is apay violation $280,000 of the in Jim Moeller (D-49) Consumer Protections Act, practicing without a license is not. This Laurie Jinkins (D-27) attorneys’ fees. Steve Kirby (D-29) technical ruling meant Washington state was required to Charles Ross (R-14) Gerry Pollet (D-46) SENATEDawn Morrell (D-25) In 2011, recognizing the urgent need to reduce Washington state’s liability Jeannie Darneille (D-27) in consumer protection actions, Attorney General McKenna introduced HB 1032/SB 5079 as agency request legislation. Christine Rolfes (D23) LEGISLATION Steve Conway (D-29) (SB 5985 / HB 2055) Jeannie Kohl-Welles (D-36) This legislation removes Washington’s outlier status and treats the state the same as private plaintiffs who bring an action under the Consumer Protection Act. This bill will protect taxpayers and level the playing field for Washington consumers. updated: 1-14-14.

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