Proposition 201

Attorneys' Fees. Shareholder Actions. Class Actions.

March 26, 1996

 


This measure changes who is responsible for paying the legal expenses of persons involved in shareholder lawsuits. Specifically, the measure requires the losing party in shareholder lawsuits to pay the winning party's reasonable legal expenses, including attorney fees. The measure permits the court, however, to waive the liability of the losing party if it finds that the lawsuit was substantially justified and the payment of the legal expenses would be unjust. The court may also reduce the expenses or require the losing attorney, rather than the losing client, to pay all or part of the expenses.