BILL ANALYSIS
SENATE JUDICIARY COMMITTEE
Senator Ellen M. Corbett, Chair
2009-2010 Regular Session
AB 2485 (Feuer)
As Amended June 21, 2010
Hearing Date: June 29, 2010
Fiscal: No
Urgency: No
TW:jd
SUBJECT
Courts: Civil Actions: Design or Construction Defects
DESCRIPTION
This bill would extend the sunset to July 1, 2017 for provisions
regulating actions filed in superior court by a common interest
development association against a builder, developer, or general
contractor for design or construction defects.
This bill also would increase the court application fee for out
of state attorneys appearing in California superior courts from
$250 to $500. This bill would designate $250 of these fees to
be deposited in the Trial Court Trust Fund.
BACKGROUND
1. Design or construction defect claims
In 1995, pre-litigation dispute resolution processes and
procedures were established for design or construction defect
claims made by a common interest development (CID) association
against a builder, developer, or general contractor of a CID.
(SB 1029 (Calderon, Ch. 864, Stats. 1995); Civ. Code Sec. 1375.)
In 2001, procedures were established for superior court actions
regarding these claims. (AB 1700 (Steinberg, Ch. 824, Stats.
2001); Civ. Code Sec. 1375.05.) Civil Code Sections 1375 and
1375.05 were set to expire on July 1, 2010. AB 927 (Calderon,
Ch. 7, Stats. 2009) extended the sunset to July 1, 2017 for
Civil Code Section 1375. This bill would extend the sunset date
to July 1, 2017 for Civil Code Section 1375.05.
(more)
AB 2485 (Feuer)
Page 2 of ?
2. Pro hac vice application fees
In 2008, the Legislature recognized a need to improve the
physical infrastructure of California courts because the courts
were in danger of losing their ability to safely and effectively
provide access to the courts and to carry out justice. Under SB
1407 (Perata, Chapter 311, Statutes of 2008), various mechanisms
were created in order to generate money for the court system.
The Immediate and Critical Needs Account of the State Court
Facilities Construction Fund (Fund) was established to receive
the money generated.
One of the mechanisms of generating money for the Fund was the
imposition of fees associated with pro hac vice applications.
The fee of $250 was to be charged to out of state attorneys
applying to represent parties in superior courts, 100 percent of
which would be deposited in the Fund.
This bill seeks to generate additional revenue for trial courts
by increasing the fee charged in connection with pro hac vice
applications filed by out of state attorneys representing
parties in California courts.
CHANGES TO EXISTING LAW
1. Existing law provides pre-litigation dispute resolution
processes and procedures for construction or design defects
claims made by a CID association against a builder, developer,
or general contractor of a CID. (Civ. Code Sec. 1375.)
Existing law sunsets these provisions on July 1, 2017. (Civ.
Code Sec. 1375(s).)
Existing law , until July 1, 2010, provides that, if parties to
a construction or design defect claim fail to resolve the
dispute, the CID association can file, as specified, an action
in the superior court against a builder, developer, or general
contractor. (Civ. Code Sec. 1375.05.)
This bill would extend this sunset on Civil Code Section
1375.05 to July 1, 2017.
2. Existing law provides that out of state attorneys can appear
pro hac vice (without being licensed in California) in
California superior courts upon the satisfaction of specified
requirements. (Rules of Ct. Sec. 9.40.)
AB 2485 (Feuer)
Page 3 of ?
Existing law provides that the fee payable to the State Bar
for filing a pro hac vice application is $50. (Rules of Ct.
Sec. 940.)
Existing law provides that the fee payable to the filing court
for filing a pro hac vice application is $250; the entirety of
this fee is deposited in the Immediate and Critical Needs
Account of the State Court Facilities Construction Fund.
(Gov. Code Sec. 70617(e).)
Existing law provides that funds collected in the Immediate
and Critical Needs Account of the State Court Facilities
Construction Fund are used for the planning, design,
construction, rehabilitation, renovation, replacement, or
acquisition of courts facilities, repayment loans made from
lease-revenue bonds for the purpose of leasing court
facilities, and payment of lease contracts for court
facilities. (Gov. Code Sec. 70371.5.)
Existing law provides that funds collected in the Trial Court
Trust Fund are used to pay for trial court operations. (Gov.
Code Sec. 68085.)
This bill would increase the court application fee for an
application to appear pro hac vice in the superior court to
$500.
This bill would provide that $250 of the pro hac vice
application fee would be distributed into the Immediate and
Critical Needs Account of the State Court Facilities
Construction Fund, and $250 of this fee would be deposited
into the Trial Court Trust Fund.
COMMENT
1. Stated need for the bill
The author writes:
This bill is designed to increase financial support for the
courts during a period of unprecedented cuts and threats of
further reductions to the court budget, while simultaneously
limiting the burden on the courts in civil matters so that
they can operate [as] productively and efficiently as
possible.
AB 2485 (Feuer)
Page 4 of ?
This bill increases the fee paid by non-California lawyers who
seek the privilege of being temporarily admitted to practice
for the purpose of a particular case from $250.00 to $500.00,
with the funds going for the support of the courts.
This bill also extends by 7 years the sunset on the
construction defect litigation rules so that they are
continued in effect until 2017, identically to the comparable
sunset period for the related pre-litigation dispute
resolution procedure.
Co-sponsor California Defense Counsel argues in favor of the
bill as follows: "AB 2485 makes a narrow change to the
Government Code to increase fees charged for pro hac vice
appearances (appearances by out-of-state counsel) from $250 to
$500. This Government Code fee is statutorily directed to the
court's critical needs account, so important in these days of
shortages in court funding. We are advised that pro hac vice
fees in many states have been increased in recent years. It is
not unreasonable that lawyers in other states, offered the
privilege of temporarily practicing law in California pursuant
to their out-of-state licenses, help defray expenses in our
courts. Should consensus items be identified, AB 2485 might be
an appropriate vehicle to make changes; of course, in that case,
the Committee will be asked to re-evaluate the bill if it
changes. AB 2485 is a small piece of an absolutely critical
discussion of court funding."
Co-Sponsor Consumer Attorneys of California (CAOC) write:
"Beyond its existing language, this bill is also intended as a
vehicle for discussions on additional ways to increase
efficiencies in the civil courts. We have been involved in
discussions with the bench and bar on how civil courts can be
run in the most effective way possible, saving time and costs
for all involved. We hope that as this bill moves through the
process it can be amended to add civil efficiency measures that
reflect best practices from around the state. At a time when
the courts are struggling with horrendous budget cuts and
struggling to provide the most basic level of services, it is
crucial to make sure that they operate at maximum efficiency."
2. Extending sunset for superior court actions brought by CID
associations
This bill would extend the sunset to July 1, 2017 for provisions
AB 2485 (Feuer)
Page 5 of ?
regulating an action filed in superior court by a CID
association against a builder, developer, or general contractor
for design or construction defects provided under Civil Code
Section 1375.05. The sunset provision under this bill is the
same as that enacted by AB 927 (Calderon, Ch. 7, Stats. 2009),
which extended the sunset to July 1, 2017 for Civil Code Section
1375, the companion section to Civil Code Section 1375.05. AB
927 inadvertently failed to include Civil Code Section 1375.05.
Given that Civil Code Section 1375 appears to be working
properly pursuant to the passage of AB 927, it is appropriate to
extend the sunset of Civil Code Section 1375.05 to July 1, 2017.
3. Pro hac vice application fees
This bill would increase the court application fee for out of
state attorneys appearing in California superior courts from
$250 to $500, and would designate $250 of these fees to be
deposited in the Trial Court Trust Fund. CAOC argues that the
fee increase proposed by this bill would generate over a half
million dollars in additional funds for the courts annually.
Under existing law, $250 of the pro hac vice application fee
goes to the Immediate and Critical Needs Account of the State
Court Facilities Construction Fund, which is used to pay for
various court facility needs. The Trial Court Trust Fund is
used for trial court operations. The increased fee proposed by
this bill would help alleviate the financial needs of trial
courts.
Support : None Known
Opposition : None Known
HISTORY
Source : California Defense Counsel; Consumer Attorneys of
California
Related Pending Legislation : None Known
Prior Legislation : See Background.
Prior Vote :
Assembly Judiciary Committee (Ayes 7, Noes 3)
AB 2485 (Feuer)
Page 6 of ?
Assembly Appropriations Committee (Ayes 11, Noes 5)
Assembly Floor (Ayes 44, Noes 27)
**************