09/19/2007
CONTACT: Melissa Sharp, 202-314-2068
Washington, D.C.--In reaction to Mr. and Mrs. Chung's announcement earlier today that they are closing Custom Cleaners, the dry-cleaning store that was sued by D.C. Administrative Law Judge Roy Pearson for $54 million over a pair of pants, Karen Harned, executive director of the National Federation of Independent Business Legal Foundation, issued the following statement:
"Small-business owners, like the Chungs, live in fear every day that they will be the next victim of a frivolous lawsuit and could possibly lose their business. For the Chungs, this fear has become a reality − forcing them to close the doors to Custom Cleaners. Even after they were victorious at trial, the costs and pressures of the ongoing lawsuit have now taken the business that they worked so hard to maintain and operate. It is disgraceful that our legal system operates this way. Outrageous litigants should not be able to use our judicial system to take advantage of innocent small-business owners.
"NFIB hopes the D.C. government will follow through with the proper proceedings to ensure Mr. Pearson is no longer entrusted with the authority to make legal decisions on behalf of the people of the District of Columbia. Removing Pearson's robe as an administrative judge is a small, but important, step towards changing the system so that the courts are no longer used to kill the American dream. It unfortunately is too late to save Custom Cleaners. However, we hope this regrettable story will help the public and government officials realize that tort reform is needed to prevent these types of frivolous lawsuits from killing another small business."
