WASHINGTON, D.C. — A fundraiser benefiting Jin and Soo Chung, operators of Washington, D.C.’s Custom Cleaners, netted more than $62,000 last week to help cover legal costs incurred in defending themselves against an ongoing $54 million lost-pants lawsuit.
“The Chungs have incurred tens of thousands of dollars in legal expenses as a result of this frivolous lawsuit, and they have lost countless nights of sleep to aggravation and worry,” said Lisa Rickard, president of the U.S. Chamber Institute for Legal Reform, which cohosted the event with the American Tort Reform Association (ATRA). “Although we can’t give them back their sleepless nights, we have taken a big step toward whittling their legal bills down to size.”
The pair of pants the Chungs say they found after making numerous attempts to settle a claim with the plaintiff, D.C. Administrative Judge Roy Pearson, was on display at the cocktail party. An armed guard stood close by, since the pants are evidence in the ongoing case.
Pearson lost the case last month, but is expected to appeal the ruling. The Chungs have filed a motion against him to recover the resulting legal costs, which now total more than $100,000. If the motion is successful, any extra proceeds from the fundraiser will be donated to charity.
“Without your support, the Chungs could very well have gone bankrupt,” said Christopher Manning, attorney for the defense and partner in the D.C. law firm of Manning & Sossamon. The Chungs also made an appearance to thank the approximately 150 attendees.
Advocates of tort reform spearheaded the event, seeing Pearson’s $54 million claim as the ultimate frivolous lawsuit. “Tonight’s fundraiser is primarily an effort to offset some of [the Chungs’] losses,” said Sherman “Tiger” Joyce, ATRA president. “But it’s also an opportunity to speak out on behalf of small-business owners like the Chungs who are regularly targeted by personal-injury lawyers because — unlike large companies — they often don’t have the resources to defend themselves.”
Three-quarters of small-business owners surveyed recently by Harris Interactive reported that they were worried about becoming the target of a frivolous or unfair lawsuit, Rickard added. “The Chungs epitomize the spirit of enterprise — building a small business, helping their neighbors and living the American dream — until someone saw the chance to strike it rich playing the litigation lottery over a pair of temporarily misplaced slacks.”
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