California Opens the Floodgates, Supreme Court Decision Applies Retroactively

Over the years, lawyers and business people have come to expect that the California courts will issue decisions that favor plaintiffs, and make it more difficult and expensive to do business in the Golden State. But a recent decision by the California Supreme Court interpreting the Song-Beverly Credit Card Act of 1971 is remarkably anti-business, even by California standards. The decision in the Pineda case, which was handed down in February, has generated an avalanche of litigation, including over 100 class action lawsuits against major retailers in three months.