BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2202
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          Date of Hearing:  March 23, 2004

                           ASSEMBLY COMMITTEE ON JUDICIARY
                               Ellen M. Corbett, Chair
                 AB 2202 (Pacheco) - As Introduced: February 18, 2004
                                           
          SUBJECT  :  SUMMARY JUDGMENT:  TIME PERIODS

           KEY ISSUE  :  SHOULD THE TIME PERIODS FOR FILING SUMMARY JUDGMENT  
          MOTIONS BE REVISED TO PROVIDE MORE TIME FOR PARTIES WHO SEEK  
          SUMMARY JUDGMENT (TYPICALLY DEFENDANTS) IF THE COURT SO ORDERS  
          OR THE PARTIES AGREE? 
                                      SYNOPSIS
          
          The summary judgment statute, as amended by SB 688 (Burton and  
          Wesson), Ch. 448 of 2002, gives parties opposing the motion 75  
          days notice and an opportunity to file opposition papers prior  
          to the hearing.  This period cannot be reduced by the court.   
          Supporters of this bill, sponsored by the California Defense  
          Counsel, take issue with SB 688 and argue that it can work  
          unjust results by making it difficult or impossible to file a  
          summary judgment motion when such a motion is warranted.  In  
          opposition, the Consumer Attorneys of California argue that it  
          is appropriate that every party opposing summary judgment has a  
          specified minimum period in which to do so.  CAOC further argues  
          that existing rules, as recently strengthened by the Judicial  
          Council, account for SB 688 and are sufficient to give the court  
          discretion in setting trial dates and granting continuances to  
          avoid any potentially harsh results.

           SUMMARY  :   Revises the time periods for filing summary judgment  
          motions.  Specifically,  this bill  allows parties moving for  
          summary judgment additional time in which to file the motion if  
          the court decides there is good cause or the parties so agree.

           EXISTING LAW:

           1)Provides a court the authority to dismiss any civil action  
            without a trial if the court finds that there is no genuine  
            issue of material fact.  (Code of Civil Procedure Section  
            437c(g).)

          2)Allows a party who wishes to seek summary judgment to file  
            such a motion within 75 days before the time appointed for the  
            hearing.  (Code of Civil Procedure Section 437c(a).)








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          3)Requires the party opposing a motion for summary judgment to  
            file the opposition not less than 14 days before the hearing.   
            (Code of Civil Procedure Section 437c(b)(2).)
           
          FISCAL EFFECT  :   As currently in print this bill is keyed  
          non-fiscal.

           COMMENTS  :  The author states that the Second District Court of  
          Appeal recently held in McMahon v. Superior Court, 106 Cal. App.  
          4th 112 (2003) that judges do not have authority to change the  
          75-day filing period required by the summary judgment statute.   
          The sponsor, California Defense Counsel, an association of  
          lawyers specializing in civil litigation defense, argues that  
          this ruling makes it difficult or impossible to file motions for  
          summary judgment in certain meritorious cases.  The sponsor  
          points to Code of Civil Procedure section 2034, providing that  
          the exchange of information regarding expert witnesses does not  
          occur until 50 days before trial, by which time it is too late  
          to file a motion for summary judgment.  CDC states, "The  
          practical effect of the conflict between the timeframes in CCP  
          437c and 2034 is to force counsel to seek relief by filing a  
          motion to continue the trial date.  California Rule of Court 375  
          indicates that while such motions should be considered on their  
          individual merits, trial dates should be considered firm, and  
          continuances are disfavored."

          The Civil Justice Association of California supports the bill,  
          focusing its arguments primarily on the 75-day time period for  
          summary judgment motions as established by SB 688 (Burton and  
          Wesson), Ch. 448, Stats 2002.  CJAC argues that the 75-day  
          period "fouled the process for filing motions for summary  
          judgment," contending that it "provides the plaintiff greater  
          opportunity for gamesmanship" and "interferes with the court's  
          ability to process cases under the Delay Reduction Act or  
          Fasttrack system." 

          The California Association of Health Facilities also supports  
          the bill, and takes issue with SB 688.  CAHF states, "Whatever  
          can be done to enhance [the availability of summary judgment] is  
          in the public interest; however, legislation (SB 688/Burton)  
          that was passed in 2002 expanded the notice required to be given  
          the opposing party from 28 days to 75 days.  This has made it  
          more difficult to bring a summary judgment motion."  CAHF  
          argues, "Litigants are frequently down to the last few days when  








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          filing such motions under the current notice rule, especially  
          given the other time limitations applicable to summary  
          judgment."

          Likewise, the American Electronics Association argues that "AB  
          2202 would take a small step to mitigate the problem [i.e., a  
          party seeking summary judgment has less time to complete  
          discovery before bringing the motion] created by the enactment  
          of SB 688?."

           Was the Legislature Reasonable In Its Determination That Parties  
          Opposing Dismissal Of Their Claims Should Be Entitled To A  
          Certain Minimum Time Period In Which To Prepare Their Defense?     
          As the sponsor correctly notes, the 75-day summary judgment  
          notice period has been held to be beyond the power of a judge to  
          shorten.  In McMahon v. Superior Court, 106 Cal. App. 4th 112,  
          115 (2003), the court observed that the summary judgment statute  
          contains three minimum time requirements: a 60-day period  
          regarding when the motion may first be filed; a 75-day period by  
          which the motion must be filed; and a 30-day period by which the  
          motion must be heard.  Construing the plain language of the  
          statute, the court held that it "gives trial courts discretion  
          to shorten only two of these time periods - the 60 days that  
          must have elapsed since the general appearance of a party  
          against whom the motion is directed before a summary judgment  
          motion can be filed, and the minimum 30 days before trial when a  
          summary judgment motion can be heard.  The subdivision does not  
          contain any language authorizing courts to shorten the 75-day  
          notice period." 

          The McMahon court went on to comment: "Because it is potentially  
          case dispositive and usually requires considerable time and  
          effort to prepare, a summary judgment motion is perhaps the most  
          important pretrial motion in a civil case.  Therefore, the  
          Legislature was entitled to conclude that parties should be  
          afforded a minimum notice period for the hearing of summary  
          judgment motions so that they have sufficient time to assemble  
          the relevant evidence and prepare an adequate opposition."   
          (McMahon v. Superior Court, at 118.)

          The facts of the McMahon case underscore the impact that  
          granting judges such discretion may have.  There, the court  
          without explanation slashed the time for preparing the  
          plaintiffs' opposition from 75 days to 21 days.  (McMahon v.  
          Superior Court, at 114.)








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           Do The Summary Judgment Motion Time Periods Cause Conflicts That  
          Courts Cannot Fairly Resolve?    The sponsor points to the 50-day  
          deadline before trial for designating expert witnesses as the  
          source of conflict causing summary judgment motions to be  
          impossible in some cases.  This hypothetical necessarily arises  
          only if two conditions are met.  First, the case must be one on  
          which the entire claim stands or falls on expert testimony, as  
          opposed to other evidence.  Such cases, while not inconceivable,  
          are not common.  Second, the expert testimony at issue must be  
          so unequivocal and one-sided as to leave no genuine issue as to  
          any material fact.  Such cases, combining both conditions, are  
          rare.

          Do the rules nevertheless hamstring judges in the prudent  
          administration of cases in light of the court's goals to advance  
          civil litigation to a speedy conclusion?  Concern about the  
          impact of delay-reduction rules, or so-called "fasttrack" case  
          processing standards, including their impact on motion practice,  
          caused the Judicial Council to appoint a Blue-Ribbon Task Force  
          last year to study the issue.  Comprising representatives of  
          both the plaintiff and defense bars as well as judges, the task  
          force unanimously elected to respond to the issue by revising  
          the Rules of Court and Standards of Judicial Administration to  
          make clear that in setting a case for trial the court must  
          consider all facts and circumstances relevant to the case,  
          including the nature and extent of law and motion proceedings  
          anticipated, and including specifically whether any summary  
          judgment motions will be filed.  (Rules of Court 213 (j)(15).)  

          In addition, the Task Force drafted a new rule regarding  
          continuance of trial dates to make clear that, although not  
          favored, a continuance is to be granted for good cause,  
          including the absence of discovery (such as expert witness  
          issues), and that the court must consider all the facts and  
          circumstances relevant to the fair determination of the motion,  
          including the interests of justice and any prejudice to the  
          parties.  This rule is believed to be sound guidance allowing  
          courts to consider every set of circumstances justifying a  
          continuance.  Finally, the Task Force also rewrote the rules  
          regarding trial target dates, somewhat reducing the pressure to  
          schedule trials within one year and thus providing a longer  
          period of time in which to file a summary judgment motion.

           Current Law Allows Parties To Shorten The Summary Judgment Time  








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          Period By Mutual Agreement.   Although judges do not have the  
          authority to impose a reduced time period for the summary  
          judgment motion, the sponsor has not suggested or cited  
          authority holding that the parties could not do so by mutual  
          agreement.  Indeed, such stipulations are common in civil  
          litigation and routinely honored.

           ARGUMENTS IN OPPOSITION:   The Consumer Attorneys of California  
          writes in opposition that AB 2202 would "effectively roll back  
          the important protections" established by SB 688.  CAOC states,  
          "Last year court rules were relaxed to permit parties to seek  
          continuances of trial dates.  We understand that defense counsel  
          were concerned about the ability of a defendant who was served  
          late in a case to have adequate time to file a motion for  
          summary judgment.  The liberalized continuance process should  
          provide some relief under those circumstances."  CAOC adds,  
          "Further, it is our understanding that parties can, under  
          existing law, stipulate to a shorter time period.  Therefore the  
          proposed changes are unnecessary."
           
          Prior/Pending Related Legislation.   AB 2211 (Plescia), scheduled  
          for hearing before the Committee today, proposes to revise the  
          summary judgment time periods to give parties filing the motion  
          more time, and parties opposing the motion less time, to prepare  
          and file their papers. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Defense Counsel (sponsor)
          American Electronics Association
          California Association of Health Facilities
          Civil Justice Association of California

           Opposition 
           
          Consumer Attorneys of California
           
          Analysis Prepared by  :  Kevin G. Baker / JUD. / (916) 319-2334