BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          AB 1067 (Huber)
          As Amended April 25, 2011
          Hearing Date: June 14, 2011
          Fiscal: No
          Urgency: No
          RD   
                    

                                        SUBJECT
                                           
                          Civil Procedure: Appeal of Orders

                                      DESCRIPTION  

          This bill would provide that an order denying a motion for 
          reconsideration made as specified, is not itself separately 
          appealable.  This bill would further provide that if the order 
          that was the subject of a motion for reconsideration is 
          appealable, then the denial of the motion for reconsideration is 
          reviewable as part of an appeal from that order. 

                                      BACKGROUND  

          As a general rule, the Code of Civil Procedure provides that 
          appeals may be taken only from such judgment or orders as are 
          made appealable by statute.  Conversely, the existence of an 
          appealable judgment is a jurisdictional prerequisite to an 
          appeal.  (Code Civ. Proc. Sec. 904.1; see also 4 Ca Jur 
          Appellate Review (3rd edition 2011) Appealability of Judgments 
          and Orders, Sec. 24.)  A well-recognized reason for this rule is 
          the judiciary's interest in limiting the number of appeals 
          possible.  

          Likewise, Code of Civil Procedure Section 1008(a), seeks to 
          limit the appeals a court may hear by permitting a party who 
          made an application for an order to only make a motion for 
          reconsideration requesting that the same court or same judge 
          reconsider the matter and modify, amend or revoke the prior 
          order if the motion is made within 10 days of service of entry 
          of written notice of the original (underyling) order and if the 
          motion for reconsideration is based upon new facts, 
                                                                (more)



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          circumstances, or law not available to the party at the time of 
          the original order.  As stated by the California Supreme Court, 
          Section 1008 "clearly limitİs] the parties' ability to file 
          repetitive motions."  The purpose and design of the statute is 
          "to conserve the court's resources by constraining litigants who 
          would attempt to bring the same motion over and over."  (Le 
          Francois v. Goel (2005) 35 Cal.4th 1094.)  (Notably, however, 
          the California Supreme Court, in reviewing and upholding the 
          constitutionality of Section 1008 in Le Francois, clarified that 
          this section does not govern the court's ability, on its own 
          motion, as opposed to a party's motion, to reevaluate its own 
          interim rulings.  Thus, a trial court retains the inherent 
          authority to change its decision at any time before entry of 
          judgment, and is not bound by the statute's requirement that 
          there be new fact or law.  Id. at 1104.)    
           
          California case law reveals a split in authority as to whether 
          an order denying a motion for reconsideration itself is 
          appealable.  (4 Ca Jur Appellate Review (3rd edition 2011) 
          Appealability of Judgments and Orders, Sec. 46.)  Some courts 
          have allowed the appeal if the underlying order was appealable 
          and if, as required by the governing statute, the motion for 
          reconsideration was based on new or different facts, but not if 
          the motion was based on the same factual showing as in the 
          original order.  (See, e.g., Santee v. Santa Clara Office of 
          Education (1990) 220 Cal.App.3d 702; Gill v. Hughes (1991) 227 
          Cal.App.3d 1299.) 

          Other courts, especially in recent years and now comprising the 
          majority in the split, have concluded that the better approach 
          is to treat an order denying reconsideration as nonappealable, 
          even if the new order states new facts, circumstances or laws, 
          in order to eliminate the possibilities that: (1) a 
          nonappealable order or judgment would be made appealable; (2) a 
          party would have two appeals from the same decision; and (3) a 
          party would obtain an unwarranted extension of time to appeal.  
          (In re Marriage of Burgard (1999) 72 Cal.App.4th 74; Crotty v. 
          Trader (1996) 50 Cal.App.4th 765; Annette v. Sharon (2005) 130 
          Cal.App.4th 1448.)  At least one court has reversed its own 
          position on this issue, to adopt the "better ruling . . . that a 
          denial of a motion of reconsideration is a nonappealable order." 
           (Rojes v. Riverside General Hospital (1988) 203 Cal.App.3d 
          1151.)  
          Observing this situation, a recent Advisory Committee Comment to 
          a California Rule of Court remarked that the added rule "takes 
          no position on whether a judgment is subject to a motion to 
                                                                      



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          reconsider or whether an order denying a motion to consider is 
          itself appealable (citations).  Both these issues are 
          legislative matters."  (CRC 8.108(e).)  

          This bill, sponsored by the Conference of California Bar 
          Associations (CCBA), would codify the majority viewpoint and 
          provide that an order denying a motion for reconsideration, made 
          as specified under existing law described above, is not itself 
          separately appealable (emphasis added).  However, this bill 
          would also provide that if the order that was the subject of a 
          motion for reconsideration is appealable, then the denial of the 
          motion for reconsideration is reviewable as part of an appeal 
          from that order (emphasis added).  

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that an appeal, other than in a limited 
          civil case, may be taken from any of the following to the Court 
          of Appeal:
           a judgment, except an interlocutory judgment or a judgment of 
            contempt that is made final and conclusive, as specified;
           an order made after a judgment made appealable by the above;
           an order granting a motion to quash service of summons or 
            granting a motion to stay the action, as specified;
           an order granting a new trial or denying a motion for judgment 
            notwithstanding the verdict;
           an order discharging or refusing to discharge an attachment or 
            granting a right to attach order;
           an order granting or dissolving an injunction, or refusing to 
            grant or dissolve an injunction;
           an order appointing a receiver;
           an interlocutory judgment, order, or decree, made or entered 
            in an action to redeem real or personal property, as 
            specified;
           an interlocutory judgment in an action for partition 
            determining the rights and interests of the respective parties 
            and directing partition to be made;
           an order made appealable by Probate Code and Family Code 
            provisions.
           an interlocutory judgment directing payment of monetary 
            sanctions by a party or an attorney for a party if the amount 
            exceeds five thousand dollars ($5,000);
           an order directing payment of monetary sanctions by a party or 
            an attorney for a party if the amount exceeds five thousand 
            dollars ($5,000); or
           an order granting or denying a special motion to strike, as 
                                                                      



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            specified under the Anti-SLAPP law.  (Code Civ. Proc. Sec. 
            940.1(a).) 

           Existing law  provides that, when an application for an order has 
          been made to a judge or to a court and is refused, either in 
          whole or in part, or is granted, or granted conditionally or on 
          terms, any party may, within 10 days, based upon new or 
          different facts, circumstances, or law, make an application to 
          the same judge or court to reconsider the matter and modify, 
          amend or revoke the prior order.   (Code Civ. Proc. Sec. 
          1008(a).)  For purposes of this section, an alleged new or 
          different law does not include a later enacted statute without 
          retroactive application.  (Code Civ. Proc. Sec. 1008(e).)   In 
          addition, the party moving for reconsideration must show that 
          the party has a satisfactory explanation for failing to produce 
          the evidence at an earlier time.  (New York Times Co. v. 
          Superior Court (2005) 135 Cal.App.4th 206, 213.)  

           Existing law  permits a party who originally made an application 
          for an order that was refused in whole or in part, or granted 
          conditionally or on terms, to make a subsequent application for 
          the same order upon new or different facts, circumstances, or 
          law.  This is known as a renewed motion.  (Code Civ. Proc. Sec. 
          1008(b).)  

           Existing law  provides that if a court at any time determines 
          there has been a change of law that warrants reconsideration of 
          a prior order it entered, it may do so on its own motion and 
          enter a different order.  (Code Civ. Proc. Sec. 1008(c).)  

           Existing law  makes a violation of Section 1008 punishable as 
          contempt and subject to sanctions, as specified.  In addition, 
          it permits an order made contrary to this section to be revoked 
          by a judge of the court in which the action or proceeding is 
          pending.  (Code Civ. Proc. Sec. 1008(d).) 

           This bill  would provide that an order denying a motion for 
          reconsideration made pursuant to Code of Civil Procedure Section 
          1008(a) (which permits any party, within 10 days after receiving 
          service of notice of entry of an order, to make an application 
          to the same judge or court issuing the order to reconsider the 
          matter and modify, amend or revoke the prior order based upon 
          new or different facts, circumstances or law) is not separately 
          appealable.  

           This bill  would also provide, however, that if the order that 
                                                                      



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          was subject of a motion for reconsideration is appealable, then 
          the denial of the motion for reconsideration is reviewable as 
          part of an appeal from that order. 
          
                                        COMMENT
           
          1.    Stated need for the bill  

          According to the author: 

            Until recently, there İwas] a notable split of authority among 
            the California appellate courts on whether an order denying a 
            motion for reconsideration is separately appealable.  . . . 
            However, "the majority of recent cases have concluded that 
            orders denying motions for reconsideration are not appealable, 
            even when based on new facts or new law." (Morton v. Wagner 
            (2007) 156 Cal.App.4th 963, 968-969, emphasis in original . . 
            . .)  The recent opinions have reached this conclusion by 
            noting that (1) Section 904.1 of the Code of Civil Procedure 
            does not authorize appeals from such orders and (2) "to hold 
            otherwise would permit, in effect, two appeals for every 
            appealable decision and promote the manipulation of the time 
            allowed for an appeal."  

            In addition to limiting appeals under Code of Civil Procedure 
            Section 904.1, existing law also limits a party's ability to 
            make motions for reconsideration under Section 1008.  Most 
            notablyİ,] Section 1008 prohibits a party from making the same 
            motion repeatedly or moving for reconsideration of a prior 
            order in the absence of new facts or new law.  . . . Section 
            1008 prohibits a party from making renewed motions that are 
            not based on new facts or new law, but it does not prevent a 
            court from reconsidering a prior decision on its own motion.  
            This line of cases, like the lines of cases considering 
            whether the denial of a motion for reconsideration is an 
            appealable order, support the overall conclusion that the 
            purpose of Section 1008 is to conserve judicial resources by 
            constraining litigants who would endlessly bring the same 
            motions over and over, or move for reconsideration of every 
            adverse order and then appeal the denial of the motion to 
            reconsider.   

          According to the bill's sponsor, the CCBA, "AB 1067 also 
          clarifies that, while a party cannot appeal the order denying 
          reconsideration by itself, the court can consider the issue in 
          connection with a timely appeal from the order that was the 
                                                                      



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          subject of the reconsideration motion.  . . .  Taken together, 
          these changes will provide clarity and consistency . . . ."  

          In support of the bill, the Judicial Council writes: 

            There is currently a split of authority in the appellate 
            courts on whether an order denying a motion for 
            reconsideration pursuant to İCode of Civil Procedure] 
            İS]ection 1008 is appealable. . . . AB 1067 would codify the 
            majority view that such orders are not appealable.  The 
            Judicial Council supports this change since it will provide 
            clarity, eliminate confusion and reduce the number of appeals 
            in this area. AB 1607 promotes judicial economy, which is 
            particularly beneficial for the courts during the current 
            fiscal crisis. 

          2.    This bill would resolve a split in authority on 
          appealability of motions to reconsider  

          This bill is intended to provide a measure of consistency in 
          California rules by codifying the majority rule among the 
          California courts adjudicating the issue of whether a denial of 
          a motion for reconsideration is itself appealable.  Currently, 
          California courts are split as to what rule they apply to these 
          cases.  This split on the issue of appealability goes to whether 
          the court has the necessary jurisdiction to hear the matter.  It 
          is not an issue that has to be necessarily raised by either 
          party; a court has the duty to dismiss an appeal if the judgment 
          or order is not appealable.  (4 Ca Jur Appellate Review (3rd 
          edition 2011) Appealability of Judgments and Orders, Sec. 24.)  
          As a result, in some California courts, there is jurisdiction to 
          hear an appeal on a denial of a motion for reconsideration where 
          there would be no jurisdiction for the exact same matter to be 
          heard in other California courts.  

          While California Code of Civil Procedure Section 904.1 generally 
          provides for the judgments and orders that are statutorily 
          appealable, it does not directly address this issue of 
          appealability of motions to reconsider.  For many years, the 
          courts that allowed for a denial of a motion for reconsideration 
          to be appealed did so on the basis that while orders for 
          reconsideration motions were not specifically listed, they fell 
          under the category of an "order after a judgment."  (See 
          discussion Rojes 203 Cal.App.3d at 1162.)  At the same time, 
          Section 1008(a) imposes the requirements that the original 
          motion for reconsideration be timely made (within 10 days of 
                                                                      



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          service of written notice of order) and that it be based upon 
          new facts, circumstances, or law.  In Blue Mountain Development 
          Co. v. Carville (1982), the court held that the order denying 
          reconsideration may be treated as "an order made after judgment" 
          and thus an appealable order, if the original ruling is an 
          appealable order and if the motion for reconsideration is based 
          upon new facts."  (132 Cal.App.3d 1005, 1010.)

          As discussed in the Background, and as recognized by recent 
          court decisions such as Tate v. Wilburn (2010) 184 Cal.App.4th 
          150, while many courts similarly believe that an appeal may be 
          made of a denial of motion for reconsideration under Section 
          904.1(b) so long as the appeal is timely and presents new facts, 
          circumstances, or law, as statutorily required by 1008(a), a 
          majority of the courts have come to reject that line of 
          reasoning and accept a rule that makes the denial of a motion 
          for reconsideration always nonappealable-including the court 
          that originally decided the Blue Mountain case.  (Compare Santee 
          v. Santa Clara Office of Education (1990) 220 Cal.App.3d 702 and 
          Gill v. Hughes (1991) 227 Cal.App.3d 1299 with In re Marriage of 
          Burgard (1999) 72 Cal.App.4th 74; Crotty v. Trader (1996) 50 
          Cal.App.4th 765; Annette F. v. Sharon S. (2005) 130 Cal.App.4th 
          1448 and Rojes v. Riverside General Hospital (1988) 203 
          Cal.App.3d 1151.) 
            
          The courts comprising this majority by and large point to three 
          policy reasons that support a finding that motions for 
          reconsideration are nonappealable: (1) a nonappealable order or 
          judgment would be made appealable; (2) a party would have two 
          appeals from the same decision; and (3) a party would obtain an 
          unwarranted extension of time to appeal.  (Rojes v. Riverside 
          General Hospital (1988) 203 Cal.App.3d 1151, 1161 (citations 
          omitted).)  

          As noted by the proponents of this bill, by codifying the 
          majority viewpoint, this bill would result in added clarity, 
          consistency, and a decrease in appeals, saving the state costs 
          and increasing the efficiency of courts, and overall promoting 
          judicial economy.  It arguably ensures a basic level of fairness 
          as well, by further ensuring that the same matter brought in one 
          California court is not treated differently for jurisdictional 
          purposes if brought in another California court.  

          3.    Allowing for reviewability in specified circumstances
           
          While this bill provides that a denial of a motion for 
                                                                      



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          reconsideration is not itself independently appealable in any 
          California court, it does allow for California courts to review 
          the denial as part of an appeal of the order underlying the 
          motion for reconsideration if the underlying order is 
          appealable. 

          The distinction between matters that are reviewable, as opposed 
          to appealable, is a relatively simple, but not insignificant 
          difference.  If a matter is appealable, it may be directly taken 
          before a higher court for review.  A matter that is reviewable, 
          however, is only open to consideration by the appellate court on 
          the record as made up for appeal from judgment.  (Ballentine's 
          Law Dictionary (2010) "Appealable," citing Collins v. Miller 
          (1952) 198 F2d 948.)  

          Therefore, only in a situation where the underlying order would 
          be appealable as statutorily provided by Code of Civil Procedure 
          Section 904.1, can a court review the denial of a motion for 
          reconsideration as part of the appeal of the underlying order.  
          Under this bill, the denial of the motion for reconsideration 
          itself, could not independently be appealed for review.  



           
          4.    Potential appealability issues with renewed motions under 
          Section 1008(b)  

          In a court case filed April 28, 2010, Tate v. Wilburn, the Court 
          of Appeal reviewed the split in authority described above and 
          agreed with the majority view holding that orders denying 
          motions for reconsideration under Section 1008(a) were 
          nonappealable.  The court, however, also faced a seemingly novel 
          issue: whether denials of renewed motions under Section 1008(b) 
          are appealable.  

          The court commented that "İn]either party has cited any case law 
          addressing whether an order denying a renewed motion to 
          İS]ection 1008, subdivision (b) is appealable, and our 
          independent research has not uncovered any such authority."  
          Noting, however, the extensive body of case law concerning the 
          appealability of an order denying a motion for reconsideration 
          under Section 1008(a) and that the text of motions for 
          reconsideration under that subdivision and renewed motions under 
          Section 1008(b) are closely related ("a party filing either a 
          motion under İS]ection 1008, subdivision (a) or (b) is seeking a 
                                                                      



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          new result in the trial court based upon 'new or different 
          facts, circumstances, or law"), the court held the same 
          appealability rule thereby applies to renewed motions.  (Tate, 
          184 Cal.App.4th 158, 159-160.)  

          Explaining its reasons for analogizing the two sections, the 
          court stated that the policy reasons (see Comment 2) behind 
          holding an order denying a motion for reconsideration 
          nonappealable were as applicable, if not more applicable, to 
          renewed motions.  Specifically, the court illuminated how the 
          possibility of a party obtaining an unwarranted extension of 
          time to appeal (the third policy consideration) is actually more 
          of a concern with respect to a renewed motion under Section 
          1008(b) than Section 1008(a), in light of the fact that such a 
          motion may be brought at any time, while a motion for 
          reconsideration must be brought "within 10 days after service 
          upon the party of written notice of entry of the İunderlying] 
          order."  While it recognized that a motion to renew a prior 
          motion seeks to renew a motion (not reconsider an order), does 
          not have a time limit, and may be heard by a new judge, the 
          court did not find any argument as to how those differences 
          rendered the policy reasons behind the nonreviewability of 
          orders denying motions to reconsider inapplicable to renewed 
          motions.      

          Though the Tate court effectively highlights the potential for 
          the same issue to arise in the scenario of renewed motions being 
          appealed, this bill does not address the appealability of 
          renewed motions and appears to have reason to refrain from doing 
          so.  Whereas this bill seeks to settle the issue of the 
          appealability of motions to reconsider where a split in 
          authority on the issue has caused incongruous rules to be 
          applied within California courts, in the case of the 
          appealability of renewed motions, courts have rarely reviewed 
          the issue and there does not appear to be a problem in with 
          current law.  The Tate court decision itself commented on the 
          novelty of the issue in case law.  Therefore, it would arguably 
          be premature for the Legislature to decide what the courts 
          should be allowed to resolve, absent a showing that a problem 
          exists.  
           
          Support  :  Judicial Council

           Opposition  :  None Known 

                                        HISTORY
                                                                      



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           Source  :  Conference of California Bar Associations (CCBA)

           Related Pending Legislation  :  None Known

           Prior Legislation  :  None Known

           Prior Vote  :

          Assembly Floor (Ayes 73, Noes 0)
          Assembly Judiciary Committee (Ayes 9, Noes 0) 

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