Client Alert

Proposition 64: Its Impact on 17200 Cases and Why It Should Apply Retroactively

November 15, 2004

Lawrence J. Gornick, Peter C. Meier and Sean Unger

On November 2, California voters passed Proposition 64, significantly curtailing the reach of California’s Unfair Competition Law in two key respects. First, private plaintiffs suing under the UCL must now show they have suffered an injury in fact and have “lost money or property” as a result. Second, private plaintiffs seeking to assert a “representative” action must now meet the requirements of Civil Procedure Code Section 382, California’s class action statute. The effect of the amendments going forward is clear; the burning question is whether Proposition 64 applies to cases pending before the Proposition took effect. We think it does.

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