This is a
great win for small businesses that are often the target of
frivolous lawsuits because attorneys know that small employers
don't have the resources available to defend themselves against
these claims.
Karen Harned, Executive Director, NFIB Legal Foundation
The case stemmed from a complaint filed by Thomas Siebel against
two California trial attorneys. Siebel alleged that the two
attorneys filed frivolous employment discrimination claims
against him in order to force a settlement. The attorneys had
represented a former employee who sued Siebel for sexual
discrimination, fraud and unpaid commissions. The trial court
entered judgment in favor of Siebel on all counts. Siebel then
sued the attorneys, Carol Mittlesteadt and Rick Buell for
malicious prosecution based on their representation of the
former employee.
The National Federation of Independent Business Legal Foundation
filed an amicus brief with the court urging that the malicious
prosecution claim be supported. In its brief the NFIB Legal
Foundation stressed how costly and burdensome frivolous lawsuits
are to small businesses.
"The threat of a suit for malicious prosecution acts as an
important deterrent to frivolous lawsuits," said Karen Harned,
executive director of NFIB's Legal Foundation. "This is a great
win for small businesses that are often the target of frivolous
lawsuits because attorneys know that small employers don't have
the resources available to defend themselves against these
claims."
"Today's decision shows the court's resolve to discourage
baseless claims by allowing victims of unwarranted lawsuits to
take legal action against unscrupulous lawyers that allow
frivolous claims to proceed," Harned continued. "We hope this
decision will cause both claimants and their lawyers to think
twice before filing a baseless claim."
