BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 731|
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                                    CONSENT


          Bill No:  SB 731
          Author:   Senate Judiciary Committee
          Amended:  3/29/11
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  4-0, 3/22/11
          AYES:  Evans, Harman, Corbett, Leno
          NO VOTE RECORDED:  Blakeslee


           SUBJECT  :    Civil actions

           SOURCE  :     Judicial Council


           DIGEST  :    This bill clarifies that existing law relating 
          to vexatious litigants applies to matters in the Courts of 
          Appeal.  This bill creates a process for the courts to 
          follow when a vexatious litigant seeks removal from 
          Judicial Council's vexatious litigant list, and this bill 
          also makes changes to the judicial arbitration program by 
          allowing parties to file a request for dismissal following 
          a satisfactory arbitration, as well as other changes, as 
          specified.

           ANALYSIS  :    Existing law prohibits a vexatious litigant 
          from filing any new litigation in pro per without first 
          obtaining permission of the presiding judge of the court 
          where the litigation is to be filed.  Existing law allows 
          for the presiding judge to permit the filing of litigation 
          by a vexatious litigant only if it appears that the 
          litigation has merit and has not been filed for the 
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          purposes of harassment or delay. (Code of Civil Procedure 
          Section 391.7 (a) and (b).)

          This bill adds "presiding justice" before "presiding judge" 
          to clarify that this section also applies to the Courts of 
          Appeal.  This bill also clarifies that the presiding 
          justice or presiding judge is authorized to designate 
          another justice or judge to perform his or her duties under 
          the statute. 

          Existing law prohibits the court clerk from filing any 
          litigation presented by a vexatious litigant subject to a 
          prefiling order unless the vexatious litigant first obtains 
          an order from a presiding judge permitting the order.  If 
          the litigation is mistakenly filed by the clerk without the 
          order, any party may file with the clerk to serve on the 
          plaintiff and other parties a notice stating that the 
          plaintiff is a vexatious litigant.  (Code of Civil 
          Procedure Section 391.7 (c).)

          This bill authorizes the presiding justice or presiding 
          judge, to order the clerk to give notice of a vexatious 
          litigant's status if the clerk mistakenly files the 
          litigation without a prefiling order. 

          Existing case law allows for a vexatious litigant to be 
          removed from Judicial Council's list of vexatious litigants 
          if he/she can demonstrate "a mending of the ways."  The 
          litigant must file an application in the court that entered 
          the prefiling order to vacate the order and be removed from 
          the vexatious litigant list.  The criteria for vacating a 
          prefiling order and removing a vexatious litigant from the 
          list are that (1) there has been a material change in the 
          facts upon which the order was entered, or (2) the "ends of 
          justice" would be served. (  Luckett v. Panos  (2008) 161 
          Cal.App.4th 77, 83;  PBA, LLC v. KPOD, Ltd.  (2003) 112 
          Cal.App.4th 9965, 978.) 

          This bill requires a vexatious litigant to follow specified 
          procedures in order to vacate a prefiling order and remove 
          his/her name from Judicial Council's list of vexatious 
          litigants.  A vexatious litigant would be required to file 
          an application in the court that entered the prefiling 
          order and the application must be made before the presiding 

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          justice or judge who originally declared the plaintiff to 
          be a vexatious litigant, if the justice or judge is 
          available.   The presiding justice or presiding judge of a 
          court may designate a justice or judge of the same court to 
          act on his/her behalf in exercising the authority and 
          responsibilities, as specified.

          This bill authorizes a judge to vacate the prefiling order 
          and remove the plaintiff's name from the list of vexatious 
          litigants upon a showing of a material change in the facts 
          and that the ends of justice will be served. 

          This bill limits a vexatious litigant to one application 
          per 12 month period following denial of the previous 
          application.

          Existing law requires courts with 18 or more judges to have 
          a judicial arbitration program for unlimited civil cases.  
          Courts are required to refer non-exempt cases into the 
          program if the amount in controversy is no more than 
          $50,000 per plaintiff.  (Code of Civil Procedure Section 
          1141.11.)

          Existing law allows parties to opt into the program under 
          certain circumstances. (Code of Civil Procedure Section 
          1141.12.)

          Existing law requires a party to request a trial de novo 
          within 30 days after the date of the filing of the 
          arbitrator's award with the court, or the award will be a 
          final judgment of law.  (Code of Civil Procedure Sections 
          1141.20 and 1141.23.)

          This bill allows parties to request a dismissal when they 
          are satisfied with the arbitration award instead of having 
          to file a request for a trial de novo or risk having a 
          judgment entered against them. 

          This bill extends the time period to request the dismissal 
          or trial de novo from 30 days to 60 days.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No


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           SUPPORT  :   (Verified  3/29/11)

          Judicial Council (source)


           ARGUMENTS IN SUPPORT  :    According to the sponsor of this 
          bill, Judicial Council, "SB 731 will reduce costs for the 
          parties and the courts associated with preparing, filing, 
          and processing unnecessary trial de novo requests.  
          Providing parties with the option of filing a request for 
          dismissal to stop entry of the arbitrator's award as the 
          judgment will allow parties who are satisfied with that 
          award, or who were able to reach agreement with the help of 
          the award, to settle their cases without also having to 
          file a trial de novo request.  In addition, giving parties 
          an additional 30 days before the arbitrator's award is 
          entered as the judgment should also increase the number of 
          cases in which the parties have sufficient time to work out 
          the details of a settlement, further reducing the number of 
          unnecessary trial de novo requests that are filed."  

          In light of the state's financial crisis it is increasingly 
          important to find ways for the courts to run more 
          efficiently.  This bill will clarify and streamline the 
          procedures for courts dealing with vexatious litigants.  
          Minor substantive changes will be made to clarify that this 
          statute applies in the Courts of Appeal and that the 
          presiding justice or judge may designate another justice or 
          judge to carry out his or her duties, as is currently the 
          practice in most courts with multiple justices or judges.  
          Under this bill, the process for a vexatious litigant to be 
          removed from the list will be codified to ensure 
          consistency among the courts.  As a result of these 
          clarifications and additions there should be a savings of 
          time and money for both litigants and the courts. "


          RJG:do  3/30/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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