BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 562
                                                                  Page  1

          Date of Hearing:  June 12, 2001

                           ASSEMBLY COMMITTEE ON JUDICIARY
                              Darrell Steinberg, Chair
                     SB 562 (Morrow) - As Amended:  June 7, 2001

           SENATE VOTE :  39-0

           SUBJECT  :  CIVIL PROCEDURE: CLASSIFICATION OF CIVIL ACTIONS,  
          HARMONIZATION OF STANDARDS AND PROCEDURES
           
          KEY ISSUE:  SHOULD THE CODES BE AMENDED TO CLARIFY CERTAIN TRIAL  
          COURT PROCEDURES AND THE CLASSIFICATION OF CIVIL CASES AS THE  
          RESULT OF TRIAL COURT UNIFICATION? 

                                      SYNOPSIS
           
           This bill, sponsored by the California Law Revision Commission  
          (CLRC), harmonizes the standard by which courts in limited and  
          unlimited civil cases may appoint a receiver, and adopts a  
          non-substantive change in the language describing that standard.  
           In addition, the bill classifies two types of currently  
          unclassified civil actions, replaces obsolete terms describing  
          the record of proceedings in the trial courts, and clarifies the  
          statutes relating to the authority of a trial court in which a  
          case is pending to transfer the case to another branch or  
          location of the court.  As noted in the analysis, these  
          technical changes are occasioned by unification of the municipal  
          and superior courts into one trial court in all 58 counties.  

           SUMMARY  :  Enacts recommendations of the CLRC to clarify  
          provisions of the codes regarding classification of civil cases  
          and court procedures as needed to reflect unification of the  
          trial courts.   Specifically,  this bill  :  

          1)Conforms the standards by which courts may appoint a receiver  
            in limited and unlimited civil cases and updates the  
            description of that standard.

          2)Specifies that a petition to release a mechanic's lien in a  
            limited civil case is itself a limited civil case.

          3)Specifies that where an action in tort against a public entity  
            would be classified as a limited civil case, a petition for  
            relief from the pre-filing presentment requirement of that  








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            claim is also classified as a limited civil case.

          4)Amends the codes, where appropriate, to replace obsolete  
            references to the terms "docket" and "docket entries" with the  
            current term "register of actions."

          5)States that where a statute expressly speaks to the authority  
            of a court to transfer either a limited or unlimited civil  
            case, the restriction of the statute to one classification of  
            cases does not, by itself, imply that the same authority is  
            lacking with regard to the other classification.

           

          EXISTING LAW  :  

          1)Describes the circumstances in which a superior court may  
            appoint a receiver in cases "other  than in a limited civil  
            case."  (Code of Civil Procedure Section 564.  All further  
            references are to this code unless otherwise noted.)  Existing  
            law likewise provides for the appointment of a receiver in a  
            limited civil case "where necessary to preserve the property  
            or rights of any party." (Section 86(a)(8).)

          2)Provides that actions to enforce and foreclose mechanics'  
            liens are limited cases where the total amount of the lien is  
            $25,000 or less.  (Section 86(a)(6).)

          3)Provides that, upon a public entity's rejection of a tort  
            claim against it on the grounds that it was filed late, the  
            claimant may petition the court for relief from the  
            requirement that the claim first be presented to the public  
            entity before filing suit.  (Government Code section 946.6.)

          4)Describes the record of proceedings in municipal courts and  
            justice courts as a "docket," (e.g., Section 396a(b); Section  
            398), and describes the record of proceedings in superior  
            courts as a "register of actions."  (E.g., Government Code  
            section 69845.) 

          5)Permits a court to transfer a pending limited case to another  
            branch or location of the court (e.g., Section 402.5), and  
            permits transfer of an unlimited civil case.  (E.g., Section  
            116.620.)









                                                                  SB 562
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           FISCAL EFFECT  :   As currently in print this bill is keyed  
          non-fiscal.

           COMMENTS  :   This bill, sponsored by the California Law Revision  
          Commission, is intended to make certain technical,  
          non-substantive changes to the codes relating to trial court  
          procedure to reflect the unification of the trial court and the  
          consequent disappearance of the municipal courts in every  
          county.  These revisions make uniform certain standards,  
          procedures and nomenclature regarding limited and unlimited  
          cases, and classify some previously unclassified civil actions.
           
          Appointment of Receivers :  The appointment of a receiver by a  
          court is an equitable remedy during litigation or after judgment  
          when necessary to preserve the rights of a party or to preserve  
          property that is the subject of the litigation.  A receiver is a  
          court officer or representative appointed to control and manage,  
          preserve and/or to dispose of property according to the court's  
          final judgment.  A receiver may not be appointed except where  
          expressly authorized by statute.  (  See  Authority to Appoint  
          Receivers, 30 Cal. L. Comm'n Reports 291 (2000), at 295.)

          CLRC recommends that the statute on appointment of a receiver in  
          an unlimited civil case be extended to limited cases, and that  
          this statute be amended to rephrase the general circumstances  
          under which a court may exercise its discretion to appoint a  
          receiver.  The provision governing appointment of a receiver in  
          an unlimited civil case currently states that the court may  
          appoint a receiver "where receivers have heretofore been  
          appointed by the usages of courts of equity."  (Section  
          564(b)(8).)  The language proposed to rephrase the standard is  
          borrowed from the more modern section Section 86(a)(8).  It  
          permits the appointment of a receiver "in all other cases where  
          necessary to preserve the property or rights of any party."   
          (Proposed Section 564(b)(9).)

          The CLRC explains that this language change is not intended to  
          be substantive, but to make the standard more understandable.   
          In order to rebut any contention that this change could be  
          construed as substantive, the CLRC states in its Comment  
          following the proposed revision that this change is not intended  
          to accomplish a substantive change.  (California Law Revision  
          Commission, Staff Memorandum, June 6, 2001, Revised Comment to  
          Code of Civil Procedure Section 564.)









                                                                  SB 562
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           Further Technical Changes .  Existing code provisions specify  
          that an action to enforce and foreclose a mechanic's lien of  
          $25,000 or less is a limited civil case, and prescribe a  
          procedure for obtaining the release of a mechanic's lien.   
          However, no provision specifies whether a release petition is a  
          limited civil case.  (Civil Procedure:  Technical Corrections,  
          30 Cal. L. Comm'n Reports 479 (2000), at 484.)  Thus, the bill  
          amends Section 86(a)(6) to state that where the amount of the  
          lien is $25,000 or less, a proceeding to release a mechanic's  
          lien is a limited civil case.  This parallels the treatment of  
          an action to enforce or foreclose a mechanic's lien.
            
           Likewise, the bill classifies petitions for relief from  
          presentment of tort claims.  Persons who wish to file a tort  
          claim against a public entity must first present their claim to  
          the public entity before filing suit.  A claimant may petition  
          the court for relief from this presentment  requirement.  But  
          existing law does not directly state whether a proceeding for  
          relief from the claim-filing requirement is a limited civil case  
          or an unlimited civil case.  The proposed change therefore  
          states that a petition for relief from the presentment  
          requirement is classified as a limited civil case "where an  
          action on the cause of action to which the claim relates would  
          be a limited civil case."  Similarly, the proposed amendment  
          also clarifies that the proper court is a superior court that  
          would be a proper court for trial of the action to which the  
          claim relates.

          The term "docket" in reference to the record kept by a trial  
          court in a civil case is obsolete as the result of unification.   
          The term "docket" was used by municipal courts and justice  
          courts, which no longer exist, while superior courts call the  
          record of proceedings in civil cases a "register of actions."   
          Thus, this bill amends various provisions of the Code of Civil  
          Procedure, the Vehicle Code and other codes to delete obsolete  
          references to a "docket" in a civil case, and replace those  
          references with the term "register of actions" where  
          appropriate.

          Finally, the CLRC notes that some statutes expressly relate to  
          court authority to transfer either a limited civil case or an  
          unlimited civil case to another branch or location of that  
          court.  While these separate statutes had relevance when the  
          municipal and superior courts were separate, they may now cause  
          confusion.  In order to avoid unduly limited construction of  








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          such statutes, this bill states that the existence of a statute  
          specifying the authority of the court in one class of cases does  
          not, by itself, imply that the same authority does or does not  
          apply in the other class of cases.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Law Revision Commission (sponsor)
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Kevin G. Baker / JUD. / (916) 319-2334