BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1927| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ CONSENT Bill No: AB 1927 Author: Jones (R) Amended: 6/25/12 in Senate Vote: 21 SENATE JUDICIARY COMMITTEE : 4-0, 7/3/12 AYES: Evans, Blakeslee, Corbett, Leno NO VOTE RECORDED: Harman ASSEMBLY FLOOR : 74-0, 5/10/12 (Consent) - See last page for vote SUBJECT : Easements: maintenance: arbitration SOURCE : Conference of California Bar Associations DIGEST : This bill clarifies that an easement owner can apply, as specified, to either the small claims court or superior court for enforcement of easement maintenance responsibilities against other easement owners. ANALYSIS : Existing law requires the owner of any easement in the nature of a private right-of-way, or of any land to which any such easement is attached, to maintain it in repair. (Civil Code (CIV) Section 845(a)) Existing law provides that, if the easement is owned by more than one person, or is attached to parcels of land under different ownership, the cost of maintaining it in repair shall be shared by each owner of the easement or the CONTINUED AB 1927 Page 2 owners of the parcels of land, as the case may be, pursuant to the terms of any agreement entered into by the parties for that purpose. If any owner who is a party to the agreement refuses to perform or fails after demand in writing to pay the owner's proportion of the cost, an action for specific performance or contribution may be brought against that owner in a court of competent jurisdiction by the other owners, either jointly or severally. (CIV Section 845(b)) Existing law provides that, in the absence of an agreement, the cost of maintaining an easement shall be shared proportionately to the use made of the easement by each owner. (CIV Section 845(c)) Existing law provides that, in the event an owner of an easement fails to share the cost to maintain an easement, any owner of the easement, or any owner of land to which the easement is attached, may apply to any court where the right-of-way is located and that has jurisdiction over the amount in controversy for the appointment of an impartial arbitrator to apportion the cost. (CIV Section 845(c)) Existing law provides that the application for enforcement of easement maintenance costs may be made before, during, or after performance of the maintenance work. If the arbitration award is not accepted by all of the owners, the court may enter a judgment determining the proportionate liability of each owner. The judgment may be enforced as a money judgment by any party against any other party to the action. (CIV Section 845(c)) Existing law provides that, in the event that snow removal is not required or under any independent contractual or statutory duty, an agreement entered into, as specified, to maintain the easement in repair shall be construed to include snow removal within the maintenance obligations of the agreement if all of the following exist: snow removal is not expressly precluded by the terms of the agreement; snow removal is necessary to provide access to the properties served by the easement; and AB 1927 Page 3 snow removal is approved in advance by the property owners or their elected representatives in the same manner as provided by the agreement for repairs to the easement. (CIV Section 845(d)) Existing law provides that the above provisions do not apply to rights-of-way held or used by railroad common carriers subject to the jurisdiction of the Public Utilities Commission. (CIV Section 845(e)) This bill authorizes an owner of an easement to recover that owner's agreed proportionate share of the cost of easement maintenance, or for specific performance or contribution in an action before, during, or after performance of the maintenance work, as follows: (1) The action may be brought in the small claims court if the amount claimed to be due as the owner's proportion of the cost does not exceed the jurisdictional limit of the small claims court. A small claims judgment shall not affect apportionment of any future costs that are not requested in the small claims action. (2) Except as provided in (1), the action must be filed in the superior court and shall be subject to judicial arbitration, as specified. A superior court judgment shall not affect apportionment of any future costs that are not requested in the action, unless otherwise provided in the judgment. (3) In the absence of an agreement addressing the maintenance of the easement, any action for specific performance or contribution must be brought in a court in the county in which the easement is located. (4) Nothing in this bill would preclude the use of any available alternative dispute resolution program to resolve actions regarding the maintenance of easements in the small claims court or the superior court. AB 1927 Page 4 FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 7/6/12) Conference of California Bar Associations (source) ARGUMENTS IN SUPPORT : The bill's sponsor, the Conference of California Bar Associations, writes, "Filing in Superior Court requires a larger filing fee, and brings into play full Superior Court rules on discovery. The paying landowner must file a Petition asking the Court to appoint at an arbitrator. The arbitrator is appointed and the arbitration held. If the defendant doesn't like the decision of the arbitrator, the defendant can request and the court must provide a full trial on the issue. As a result, a $500.00 dispute can easily end up in Superior Court, go through non-binding arbitration, and then go through a full court trial. The cost to the paying landowners is thousands of dollars in attorney fees and costs, to collect from one or more recalcitrant landowners. And, since there is no road maintenance agreement, there is no attorney fees clause, and the Court will not award attorney fees, only the costs. And, what is to keep the same or another landowner from doing the same thing the next time repairs are needed?" ASSEMBLY FLOOR : 74-0, 5/10/12 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Davis, Dickinson, Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Pan, Perea, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Cook, Fletcher, Furutani, Jeffries, Olsen, V. Manuel Pérez AB 1927 Page 5 RJG:m 7/6/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****