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« A Lesson in Pricing | Main | International Trade is Not Like Politics »

More Lawsuits

The Oakland A's are in the same division as the Anaheim Angels.  They share more than that, though... they are also being sued for discrimination under the Unruh Civil Rights Act:

A group of San Diego men denied free Mother's Day weekend giveaways at major league baseball games are suing some teams -- including the Oakland A's -- over their lost tote bags and reversible bucket hats.

Alfred Rava, a San Diego attorney, filed suit in Alameda County Superior Court May 8 for sex discrimination against the Oakland A's after he did not receive a free
plaid reversible bucket hat during a promotion at the A's game May 8, 2004.

A reversible bucket hat?  Like this?

311666sysimagemedium

Make it white and you could be the next Gilligan.  But, as usual, I digress.

Sex and age discrimination lawsuits are not new to Rava. Just last month, the San Diego Union Tribune reported Rava and another man, Steven Surrey, have filed more than 30 such lawsuits in San Diego, Los Angeles, Orange and Ventura counties against restaurants, nightclubs and other businesses that offer Ladies' Nights and similar discounts to a select group of people.

So, as I read it, third-degree price discrimination, where individuals from different groups are charged different prices based upon the group's sensitivity to price changes, is illegal under the Unruh Act.  If so, then businesses that offer student discounts, senior citizen discounts, and ladies nights discounts would be in violation of the Act.  It's well-known that allowing price discrimination can lead to voluntary exchanges that would not otherwise occur.  So firms that engage in such exchanges can be held liable for damages under the Unruh Act?  Talk about unintended consequences!

In many of those lawsuits -- including the one against the A's -- Rava cites California's Unruh Civil Rights Act as the primary anti-discrimination law violated. Penalties for violating the law include the awarding of damages of $4,000 per violation.

Some of the lawsuits have been settled out of court, while some have been thrown out, according to the paper.

I am not a lawyer, I didn't stay at a Holiday Inn Express last night, and I don't watch lawyer shows.  But these lawsuits, while legitimate under California Law (as Kip pointed out in my previous post linked to below), not only seem frivolous but also potentially damaging.  Perhaps this is another reason why U Haul rates for trips out of California are higher than U Haul rates for trips into California.

Here is my earlier post on the Angels' lawsuit.  Peter Schmuck offers more here.

HT to Sports Business Daily.

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