BILL ANALYSIS                                                                                                                                                                                                    Ó






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


          AB 1865 (Alejo)
          As Amended June 25, 2012
          Hearing Date: July 3, 2012
          Fiscal: Yes
          Urgency: No
          BCP  
                    

                                        SUBJECT
                                           
                       Residential Tenancies: Eviction Notices

                                     DESCRIPTION  

          This bill would require the mandatory notice of filing of an 
          unlawful detainer (eviction) action by the clerk of the court to 
          include the name and telephone number of any entity certified as 
          a lawyer referral service that requests inclusion in the notice 
          of filing, as specified, and information on how to locate a 
          lawyer referral service through the State Bar. 

                                      BACKGROUND  

          Under existing law, tenants who are facing eviction in an 
          unlawful detainer action must be served a notice from the court 
          that includes the name and telephone number of the county bar 
          association as well as legal services projects that provide 
          legal services to low-income persons in the county.  Those 
          provisions were largely enacted by SB 892 (Lockyer, Chapter 
          1007, Statutes of 1991) in response to concerns about tenant 
          defense services soliciting business from defendants in unlawful 
          detainer actions.  This Committee's analysis of that bill noted 
          that:

            According to Legal Aid Foundation of Los Angeles County 
            (LAFLA), tenant defense services, which they refer to as 
            "rip-off" services, review the previous day's filings of 
            unlawful detainer actions in municipal court on a daily 
            basis.  The services then contact the tenant by mail, 
            telephone, and/or personal visits to the tenant's premises.  
            They charge anywhere from fifty to several hundred dollars 
                                                                (more)



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            -- guaranteeing that the tenant can continue to live in his 
            or her apartment rent-free for 6 or 7 months.

            The services actually provided to tenants range from no 
            services at all, to the filing of defective pleadings, the 
            filing of false "Arrieta" claims (a claim that the occupant 
            was not made a party to the unlawful detainer proceeding and 
            is therefore entitled to a court hearing) and/or the filing 
            of fraudulent bankruptcies.  According to LAFLA, in almost 
            all instances the tenant does not receive appropriate 
            assistance.

          This bill similarly seeks to provide additional information to 
          defendants in unlawful detainer actions by requiring the 
          mandatory court notice to include, upon request, the name and 
          telephone number of any entity that is certified as a lawyer 
          referral service, as specified, and information on how to locate 
          a lawyer referral service through the State Bar.
           
                                CHANGES TO EXISTING LAW
           
           Existing law  requires the court clerk, upon the filing of any 
          unlawful detainer action, to mail to each defendant named in the 
          action a notice that contains on its face the following:
           the name and telephone number of the county bar association; 
            and
           the name and telephone number of an office or offices funded 
            by the Legal Services Corporation or qualified legal service 
            projects that receive funds distributed through the State Bar 
            program for legal services to indigent persons, that provide 
            legal services to low-income persons in the county in which 
            the action was filed.  (Code Civ. Proc. Sec. 1161.2.)
          
           Existing law  requires the State Bar, with the approval of the 
          California Supreme Court, to formulate and enforce rules and 
          regulations which, among other things, do the following:
           establish minimum standards for lawyer referral services;
           require that an entity seeking to qualify as a lawyer referral 
            service register with the State Bar and obtain from the State 
            Bar a certificate of compliance with the minimum standards for 
            lawyer referral services; 
           require lawyer referral services to establish separate ongoing 
            activities or arrangements that serve persons of limited 
            means; and
           require each lawyer who is a member of a certified lawyer 
            referral service to comply with all applicable professional 
                                                                      



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            standards, rules, and regulations, and to possess a policy of 
            errors and omissions insurance, as specified.  (Bus. & Prof. 
            Code Sec. 6155(f).)
           
          This bill  would require the above notice to additionally 
          contain: 
           the name and telephone number of any entity that requests 
            inclusion in the notice if the entity demonstrates to the 
            satisfaction of the court that it has been certified by the 
            State Bar as a lawyer referral service and maintains a panel 
            of attorneys qualified in the practice of landlord-tenant law 
            pursuant to the minimum standards for a lawyer referral 
            service; and
           the following statement:

             "The State Bar of California certifies lawyer referral 
             services in California and publishes a list of certified 
             lawyer referral services organized by county. To locate a 
             lawyer referral service in your county, go to the State 
             Bar's website at www.calbar.ca.gov or call 1-866-442-2529."

                                        COMMENT
           
          1.  Stated need for the bill  

          According to the author:

            AB 1865 gives all non-profit bar associations the 
            opportunity to provide legal services and represent people 
            who have received an unlawful detainer notice in court by 
            listing them as a resource on the unlawful detainer notice. 
            As a result, it provides individuals greater access to legal 
            services.

          2.   Additional legal resources  

          This bill would allow courts to provide defendants (the tenants) 
          in unlawful detainer actions with contact information for lawyer 
          referral services that have requested inclusion in the unlawful 
          detainer notice, and information on how to locate a lawyer 
          referral service through the California State Bar.  That 
          information would be included in the mandatory notice mailed by 
          the court clerk to all defendants in the unlawful detainer 
          action.  Under existing law, those notices already include 
          contact information for the county bar association and legal 
          services projects that provide legal services to low-income 
                                                                      



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          persons.  Thus, information about other lawyer referral services 
          would provide another way for the tenant to locate an attorney 
          should he or she decide to seek legal representation in the 
          action.

          It should be noted that lawyer referral services must be 
          certified by the California State Bar and conform to standards 
          adopted by the California Supreme Court.  The State Bar's Web 
          site notes that the referral process generally works as follows:

            When you call a lawyer referral service, you will be asked 
            about your situation. If you have a legal problem, the 
            lawyer referral service will arrange an initial consultation 
            for you, or give you the name and number of a lawyer whom 
            you can contact directly to arrange a consultation. There is 
            usually a small charge for the consultation, but it may, in 
            some cases, be free. After the initial consultation, it is 
            up to you whether or not you want to hire the lawyer.

          Those certified lawyer referral services are subject to various 
          requirements, including that an attorney may not directly or 
          indirectly own or operate a lawyer referral service if the 
          attorney individually or jointly receives more than twenty 
          percent of the referrals.  Considering the prior issues with 
          "tenant defense services" raised with the enactment of SB 892 
          (Lockyer, Chapter 1007, Statutes of 1991) (see Background), 
          providing tenants with additional referral options that have 
          been certified by the State Bar would appear to further increase 
          access to legal services for those who desire to locate an 
          attorney to assist in the unlawful detainer action.  The 
          Watsonville Law Center, in support, similarly asserts:

            In many large counties . . . there can be several 
            metropolitan or geographic bar associations which are right 
            in the defendant's city, town or neighborhood, and which 
            also maintain non-profit, fully certified lawyer referral 
            services.  If other bar associations within a county provide 
            lawyer referrals to low-income individuals, there is no 
            reason why such information should not be provided to the 
            people who need it.

          As a result, this bill would allow courts to provide additional 
          information to defendants regarding lawyer referral services in 
          the area.


                                                                      



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           Support  :  California Rural Legal Assistance Foundation; City of 
          Santa Monica; Consumer Attorneys of California; Santa Clara 
          County La Raza Lawyers Association; Watsonville Law Center; 
          Western Center on Law & Poverty 

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Conference of California Bar Associations

           Related Pending Legislation  :  None Known

           Prior Legislation  : SB 892 (Lockyer, Chapter 1007, Statutes of 
          1991) See Background and Comment 2.

           Prior Vote  :

          Assembly Judiciary Committee (Ayes 10, Noes 0)
          Assembly Appropriations Committee (Ayes 16, Noes 0)
          Assembly Floor (Ayes 72, Noes 3)

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