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) AB 1865 (Alejo) Page 2 of ? -- 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 AB 1865 (Alejo) Page 3 of ? 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 AB 1865 (Alejo) Page 4 of ? 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. AB 1865 (Alejo) Page 5 of ? 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) **************