BILL NUMBER: AB 1505	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 10, 2007

INTRODUCED BY   Assembly Member Parra

                        FEBRUARY 23, 2007

    An act to amend Section 382 of the Code of Civil
Procedure, relating   An act to repeal and add Section
1781 of the Civil Code, and to add Section 383 to, and to repeal and
add Section 382 of, the Code of Civil Procedure, relating  to
civil actions.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1505, as amended, Parra. Joinder: representative actions.
   Under existing law, if the consent of any person who should have
been joined as a plaintiff cannot be obtained, that person may be
made a defendant, and the complaint shall state the reason. Existing
law authorizes one or more persons to sue or defend for the benefit
of all if the question is one of a common or general interest of many
persons, or if the parties are numerous and it is impracticable to
bring them all before the court.  The Consumers Legal Remedies
Act permits a consumer who suffers any damage as a result of certain
commercial practices to bring an action on the behalf of other
consumers similarly situated, pursuant to specified procedures 
 . 
   This bill would  make technical, nonsubstantive changes to
these provisions.   repeal and reenact the provisions
described above and would create a comprehensive set of procedures to
be followed in all class actions. The bill would establish the
prerequisites for a class action and would prohibit the maintenance
of a class action unless other criteria are met. The bill would
provide a process for defining or certifying a class, appointment of
class counsel, notification to members of a class and payment for the
notification, withdrawal by a member of a class, orders for the
conduct of class actions, for the settlement, dismissal or compromise
of class action, and for appeals from a class action. The bill would
require a court that certifies a class for a class action to appoint
class council pursuant to specified requirements. The bill would
permit a court to award of attorney's   fees in class
actions, except as specified. The bill would provide that its
provisions are severable. The bill would also make a related
statement of legislative findings and intent. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares
that:  
   (a) Class action lawsuits are an important and valuable part of
the legal system when they permit the fair and efficient resolution
of legitimate claims of numerous parties by allowing the claims to be
aggregated into a single action against a defendant that has
allegedly caused harm.  
   (b) The lack of clear standards for the certification and
management of class actions in California has led to abuses of the
class action device that have harmed class members with legitimate
claims as well as defendants who have acted responsibly and these
abuses have undermined public respect for our judicial system. 

   (c) It is the intent of the Legislature in enacting this act to
implement a uniform set of standards for the certification and
management of all class actions in California that is modeled on Rule
23 of the Federal Rules of Civil Procedure and that will provide
judges with adequate guidelines and tools for the fair and efficient
oversight of class actions.  
   (d) It is the intent of the Legislature in enacting this act to
eliminate any presumption or policy in favor of class certification
and to allow class certification only when all requirements set forth
in this act are satisfied.  
   (e) It is the intent of the Legislature in enacting this act that
all prior case law in conflict with this act shall be of no further
force or effect after the enactment of this act. 
   SEC. 2.    Section 1781 of the   Civil Code
  is repealed.  
   1781.  (a) Any consumer entitled to bring an action under Section
1780 may, if the unlawful method, act, or practice has caused damage
to other consumers similarly situated, bring an action on behalf of
himself and such other consumers to recover damages or obtain other
relief as provided for in Section 1780.
   (b) The court shall permit the suit to be maintained on behalf of
all members of the represented class if all of the following
conditions exist:
   (1) It is impracticable to bring all members of the class before
the court.
   (2) The questions of law or fact common to the class are
substantially similar and predominate over the questions affecting
the individual members.
   (3) The claims or defenses of the representative plaintiffs are
typical of the claims or defenses of the class.
   (4) The representative plaintiffs will fairly and adequately
protect the interests of the class.
   (c) If notice of the time and place of the hearing is served upon
the other parties at least 10 days prior thereto, the court shall
hold a hearing, upon motion of any party to the action which is
supported by affidavit of any person or persons having knowledge of
the facts, to determine if any of the following apply to the action:
   (1) A class action pursuant to subdivision (b) is proper.
   (2) Published notice pursuant to subdivision (d) is necessary to
adjudicate the claims of the class.
   (3) The action is without merit or there is no defense to the
action.
   A motion based upon Section 437c of the Code of Civil Procedure
shall not be granted in any action commenced as a class action
pursuant to subdivision (a).
   (d) If the action is permitted as a class action, the court may
direct either party to notify each member of the class of the action.
The party required to serve notice may, with the consent of the
court, if personal notification is unreasonably expensive or it
appears that all members of the class cannot be notified personally,
give notice as prescribed herein by publication in accordance with
Section 6064 of the Government Code in a newspaper of general
circulation in the county in which the transaction occurred.
   (e) The notice required by subdivision (d) shall include the
following:
   (1) The court will exclude the member notified from the class if
he so requests by a specified date.
   (2) The judgment, whether favorable or not, will include all
members who do not request exclusion.
   (3) Any member who does not request exclusion, may, if he desires,
enter an appearance through counsel.
   (f) A class action shall not be dismissed, settled, or compromised
without the approval of the court, and notice of the proposed
dismissal, settlement, or compromise shall be given in such manner as
the court directs to each member who was given notice pursuant to
subdivision (d) and did not request exclusion.
   (g) The judgment in a class action shall describe those to whom
the notice was directed and who have not requested exclusion and
those the court finds to be members of the class. The best possible
notice of the judgment shall be given in such manner as the court
directs to each member who was personally served with notice pursuant
to subdivision (d) and did not request exclusion. 
   SEC. 3.    Section 1781 is added to the  
Civil Code   , to read:  
   1781.  Any consumer entitled to bring an action under Section 1780
may, if the unlawful method, act, or practice has caused damage to
other consumers similarly situated, bring an action on behalf of
himself or herself and the other consumers to recover damages or
obtain other relief as provided for in Section 1780. These class
actions shall be subject to the requirements and provisions set forth
in Section 383 of the Code of Civil Procedure. 
   SEC. 4.    Section 382 of the   Code of
Civil Procedure   is repealed.  
   382.  If the consent of any one who should have been joined as
plaintiff cannot be obtained, he may be made a defendant, the reason
thereof being stated in the complaint; and when the question is one
of a common or general interest, of many persons, or when the parties
are numerous, and it is impracticable to bring them all before the
court, one or more may sue or defend for the benefit of all.

   SEC. 5.    Section 382 is added to the  
Code of Civil Procedure   , to read:  
   382.  If the consent of any one who should have been joined as
plaintiff cannot be obtained, he or she may be made a defendant, the
reason being stated in the complaint. 
   SEC. 6.    Section 383 is added to the  
Code of Civil Procedure   , to read:  
   383.  (a) One or more members of a class may sue or be sued as
representative parties on behalf of all members of the class only if
all of the following are true:
   (1) The class is so numerous that joinder of all members is
impracticable.
   (2) There are questions of law or fact common to the class.
   (3) The claims or defenses of the representative parties are
typical of the claims or defenses of the class.
   (4) The representative parties will fairly and adequately protect
the interests of the class.
   (b) An action may be maintained as a class action only if the
prerequisites of subdivision (a) are satisfied, and any of the
following are true:
   (1) The prosecution of separate actions by or against individual
members of the class would create a risk of either of the following:
   (A) Inconsistent or varying adjudications with respect to
individual members of the class that would establish incompatible
standards of conduct for the party opposing the class.
   (B) Adjudications with respect to individual members of the class
that would, as a practical matter, be dispositive of the interests of
the other members not parties to the adjudications or substantially
impair or impede their ability to protect their interests.
   (2) The party opposing the class has acted or refused to act on
grounds generally applicable to the class, thereby making appropriate
final injunctive relief or corresponding declaratory relief with
respect to the class as a whole.
   (3) (A) The court finds all of the following:
   (i) That the questions of law or fact common to the members of the
class predominate over any questions affecting only individual
members.
   (ii) That the evidence likely to be admitted at trial regarding
the elements of the claims for which certification is sought and of
the defenses to them is substantially the same as to all class
members.
   (iii) That a class action is superior to other available methods
for the fair and efficient adjudication of the controversy.
   (B) The matters pertinent to these findings include:
   (i) The interest of members of the class in individually
controlling the prosecution or defense of separate actions.
   (ii) The extent and nature of any litigation concerning the
controversy already commenced by or against members of the class.
   (iii) The desirability or undesirability of concentrating the
litigation of the claims in the particular forum.
   (iv) The difficulties likely to be encountered in the management
of a class action.
   (v) The extent to which the allegations at issue are subject to
the jurisdiction of federal or state regulatory agencies.
   (c) (1) (A) When a person sues or is sued as a representative of a
class, the court shall, at an early practicable time, determine by
order whether to certify the action as a class action.
   (B) An order certifying a class action shall define the class and
the class claims, issues, or defenses, and shall appoint class
counsel under subdivision (g).
   (C) An order under this subdivision may be altered or amended
before final judgment.
   (2) Upon motion of any party, the court shall hold a hearing on
class certification. The court shall make a certification
determination on the basis of a written order addressing all factors
required by subdivisions (a) and (b) and shall specify the evidence,
or lack of evidence, on which the court has based its decision.
   (3) A court shall not certify that an action may be maintained as
a class action unless, on the basis of a full record on the relevant
issues, it determines that the action complies with all requirements
for certification set forth in subdivisions (a) and (b). The court's
obligation to make these determinations is not lessened by an overlap
between a requirement set forth in subdivisions (a) and (b) and a
merits issue.
   (4) The determination that an action may be maintained as a class
action shall not relieve any member of the class from the burden of
proving all elements of the member's cause of action, including
individual injury and the amount of damages.
   (5) (A) For any class certified under paragraph (1) or (2) of
subdivision (b), the court may direct appropriate notice to the
class.
   (B) For any class certified under paragraph (3) of subdivision
(b), the court shall direct to class members the best notice
practicable under the circumstances, including individual notice to
all members who can be identified through reasonable effort. The
notice shall concisely and clearly state the following in plain,
easily understood language:
   (i) The nature of the action.
   (ii) The definition of the class certified.
   (iii) The class claims, issues, or defenses.
   (iv) That a class member may enter an appearance through counsel
if the member desires.
   (v) That the court will exclude from the class any member who
requests exclusion, and state when and how members may elect to be
excluded.
   (vi) The binding effect of a class judgment on class members under
paragraph (6).
   (C) Unless the parties agree otherwise, the proponents of the
class shall bear the expense of notification required by this
subdivision. The court may require other parties to the litigation to
cooperate in securing the names and addresses of the persons within
the class for the purpose of providing individual notice, but any
costs incurred by the party in providing this cooperation shall be
paid initially by the party claiming the class action. Upon
termination of the action, the court may allow as taxable costs all
or part of the expenses incurred by the prevailing party.
   (6) The judgment in an action maintained as a class action under
paragraph (1) or (2) of subdivision (b), whether or not favorable to
the class, shall include and describe those whom the court finds to
be members of the class. The judgment in an action maintained as a
class action under paragraph (3) of subdivision (b), whether or not
favorable to the class, shall include and specify or describe those
to whom the notice provided in paragraph (5) of subdivision (c) was
directed, and who have not requested exclusion, and whom the court
finds to be members of the class.
   (7) When appropriate, an action may be brought or maintained as a
class action with respect to particular issues, or a class may be
divided into subclasses and each subclass treated as a class, and the
provisions of this section shall then be construed and applied
accordingly.
   (d) In the conduct of actions to which this section applies, the
court may make appropriate orders:
   (1) Determining the course of proceedings or prescribing measures
to prevent undue repetition or complication in the presentation of
evidence or argument.
   (2) Requiring, for the protection of members of the class or
otherwise for the fair conduct of the action, that notice be given in
such manner as the court may direct to some or all of the members of
any of the following:
   (A) Any step in the action or of the proposed extent of the
judgment.
   (B) The opportunity of members to signify whether they consider
the representation fair and adequate, to intervene and present claims
or defenses, or otherwise to come into the action.
   (C) A proposed settlement by a defendant that is not approved by
class counsel or class representatives in which class members would
be given the opportunity to present a claim and obtain compensation
on any terms and conditions as the defendant, with the court's
approval, may propose. In determining whether to approve a
defense-sponsored settlement, the court shall follow the provisions
set forth in subdivision (e).
   (3) Imposing conditions on the representative parties or on
intervenors.
   (4) Requiring that the pleadings be amended to eliminate
allegations as to representation of absent persons, and that the
action proceed accordingly.
   (5) Addressing with procedural matters within the case that are
similar. These orders may be altered or amended as may be desirable
from time to time.
   (6) Except for good cause shown, staying all discovery directed
solely to the merits of the claims or defenses in the action until
the court has issued its written decision regarding certification of
the class.
   (e) (1) (A) The court shall approve any settlement, voluntary
dismissal, or compromise of the claims, issues, or defenses of a
certified class.
   (B) The court shall direct notice in a reasonable manner to all
class members who would be bound by a proposed settlement, voluntary
dismissal, or compromise.
   (C) The court may approve a settlement, voluntary dismissal, or
compromise that would bind class members only after a hearing and on
finding that the settlement, voluntary dismissal, or compromise is
fair, reasonable, and adequate.
   (2) The parties seeking approval of a settlement, voluntary
dismissal, or compromise under paragraph (1) shall file a statement
identifying any agreement made in connection with the proposed
settlement, voluntary dismissal, or compromise.
   (3) In an action previously certified as a class action under
paragraph (3) of subdivision (b), the court may refuse to approve a
settlement unless it affords a new opportunity to request exclusion
to individual class members who had an earlier opportunity to request
exclusion but did not do so.
   (4) (A) Any class member may object to a proposed settlement,
voluntary dismissal, or compromise that requires court approval under
paragraph (1).
   (B) An objection made under this paragraph may be withdrawn only
with the court's approval.
   (f) The courts of appeals shall hear appeals for orders of the
superior court granting or denying class certification if a notice of
appeal is filed within 20 days after service of a written notice of
entry of an order granting or denying a class certification motion.
The failure of a party to appeal from an order granting or denying a
class certification motion shall not bar that party from raising
issues concerning class certification in any later appeal in the
case. An appeal does not stay proceedings in the trial court unless
the trial judge or the court of appeals so orders.
   (g) (1) (A) Unless a statute provides otherwise, a court that
certifies a class shall appoint class counsel.
   (B) An attorney appointed to serve as class counsel shall fairly
and adequately represent the interests of the class.
   (C) (i) In appointing class counsel, the court shall consider:
   (I) The work counsel has done in identifying or investigating
potential claims in the action.
   (II) Counsel's experience in handling class actions, other complex
litigation, and claims of the type asserted in the action.
   (III) Counsel's knowledge of the applicable law.
   (IV) The resources counsel will commit to representing the class.
   (ii) In appointing class counsel, the court may:
   (I) Consider any other matter pertinent to counsel's ability to
fairly and adequately represent the interests of the class.
   (II) Direct potential class counsel to provide information on any
subject pertinent to the appointment and to propose terms for
attorney fees and nontaxable costs.
   (III) Make further orders in connection with the appointment.
   (2) (A) The court may designate interim counsel to act on behalf
of the putative class before determining whether to certify the
action as a class action.
   (B) When there is one applicant for appointment as class counsel,
the court may appoint that applicant only if the applicant is
adequate under subparagraphs (B) and (C) of paragraph (1). If more
than one adequate applicant seeks appointment as class counsel, the
court shall appoint the applicant best able to represent the
interests of the class.
   (h) In an action certified as a class action, the court may award
reasonable attorney fees and nontaxable costs authorized by law or by
agreement of the parties as follows:
   (1) A claim for an award of attorney fees and nontaxable costs
shall be made by motion, subject to the provisions of this
subdivision, at a time set by the court. Notice of the motion shall
be served on all parties and, for motions by class counsel, directed
to class members in a reasonable manner.
   (2) A class member, or a party from whom payment is sought, may
object to the motion.
   (3) The court may hold a hearing and shall find the facts and
state its conclusions of law on the motion.
   (4) The court may refer issues related to the amount of the award
to a special master or to a magistrate judge.
   (5) Reasonable attorney fees and nontaxable costs shall not
include fees and costs incurred litigating entitlement to attorney
fees and costs, including motions brought under this provision. 

   SEC. 7.    The provisions of this act are severable.
If any provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that
can be given effect without the invalid provision or application.
 
  SECTION 1.    Section 382 of the Code of Civil
Procedure is amended to read:
   382.  If the consent of any person who should have been joined as
a plaintiff cannot be obtained, that person may be made a defendant,
and the complaint shall state the reason. If the question is one of a
common or general interest of many persons, or if the parties are
numerous and it is impracticable to bring them all before the court,
one or more persons may sue or defend for the benefit of all in the
group.