PRACTITIONER BLOG
Read our analyses of developments in Impact Litigation and stay current on class action law
IMPACT FUND & AMICI to CALIFORNIA COURT OF APPEAL: PROTECT CATALYST FEES
In June, Impact Fund filed an amicus brief on behalf of thirty-six other public interest law organizations in San Diego Tenant Union et al. v. San Diego Housing Commission et al., in the California Court of Appeal. Our brief asked the Court to affirm the availability of catalyst fees to plaintiffs' counsel in successful public interest lawsuits because nonprofit legal services organizations rely upon the fee-shifting provisions of catalyst fees to undertake important litigation. “Catalyst fees” are a legal mechanism by which defendants pay plaintiffs attorneys’ fees when plaintiffs’ lawsuit induces defendants to provide the relief sought by plaintiffs—in other words, when plaintiffs’ lawsuit “catalyzes” defendants’ change in conduct.
Talking Turkey: Impact Fund Files Amicus Brief To Protect Catalyst Fees For Plaintiffs
In Direct Action Everywhere v. Diestel Turkey Ranch, the plaintiff filed a false advertising lawsuit alleging that Diestel was deceiving customers about the condition in which it kept animals on its properties. Several days into the trial, Diestel voluntarily removed the allegedly false statements from its website as part of a “website refresh.” The trial court denied Direct Action’s motion for catalyst fees for multiple reasons, two of which stood out to the Impact Fund and its allies. First, the court scorned the plaintiff’s reason for bringing the lawsuit and, second, it criticized the plaintiff’s activities outside the courtroom.