Consumer Advocacy Group, Inc. v. Kintetsu Enterprises of America

In 2002, the Legislature required judicial review of Proposition 65 settlements because of concern that “in some cases, defendants and private plaintiffs have found common ground by entering into a settlement that does not provide any real protection to the public in the event of a violation, but does provide compensation to the plaintiffs’ attorneys.” (Sen. Rules Com., Analysis of Sen. Bill No. 471 (2001-2002 Reg. Sess.) as amended Sept. 13, 2001, pp. 3-4.) The Legislature sought to prevent settlements “which simply result ion [sic] inadequate public warning in exchange for payments of attorney’s fees.” (Sen. Rules Com., Analysis of Sen. Bill No. 471 (2001-2002 Reg. Sess.) as amended Sept. 13, 2001, p. 3.)

Judicial review disclosed the accuracy of the Legislature’s concerns. The admission of “no violation” did not deter litigation or settlement (Consumer Cause, Inc. v. Johnson & Johnson (2005) 132 Cal.App.4th 1175, 1179 [ 34 Cal.Rptr.3d 258 ] (Johnson & Johnson)), and settlements were entered at the “direct expense of the public interest.” (Consumer Defense Group v. Rental Housing Industry Members (2006) 137 Cal.App.4th 1185, 1218 [ 40 Cal.Rptr.3d 832 ] (Consumer…