BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                        SB 131|
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                                    THIRD READING


          Bill No:  SB 131
          Author:   Beall (D) and Lara (D), et al.
          Amended:  5/28/13
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  5-1, 5/7/13
          AYES:  Evans, Corbett, Jackson, Leno, Monning
          NOES:  Anderson
          NO VOTE RECORDED:  Walters

           SENATE APPROPRIATIONS COMMITTEE  :  5-1, 5/23/13
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NOES:  Walters
          NO VOTE RECORDED:  Gaines


           SUBJECT  :    Damages:  childhood sexual abuse:  statute of  
          limitations

           SOURCE  :     National Center for Victims of Crime


           DIGEST  :    This bill provides that the time limits for  
          commencement of an action for recovery of damages suffered as a  
          result of childhood sexual abuse be applied retroactively to any  
          claim that has not been adjudicated to finality on the merits as  
          of January 1, 2014.  This bill revives, for a period of one  
          year, a cause of action, as specified, that would otherwise be  
          barred by the statute of limitations as of January 1, 2014,  
          provided that the plaintiff's 26th birthday was before January  
          1, 2003, and the plaintiff discovered the cause of his/her  
          injury on or after January 1, 2004.  This bill provides that a  
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          plaintiff is entitled to conduct discovery before the court may  
          rule on a motion challenging the sufficiency of the plaintiff's  
          showing that a person or entity knew or had reason to know, or  
          was otherwise on notice, of any unlawful sexual conduct and  
          failed to take reasonable steps, and to implement reasonable  
          safeguards, to avoid those act in the future.  This bill  
          specifies that this entitlement does not apply to a cause of  
          action revived pursuant to these provisions.

           ANALYSIS  :    

          Existing law:

           1. Generally provides that the time for commencing a civil  
             action for damages shall be within two years of the injury or  
             death caused by the wrongful act or neglect of another.   
             (Code of Civil Procedure (CCP) Section 340)  

           2. Provides that the time for commencing an action based on  
             injuries resulting from childhood sexual abuse, as defined,  
             shall be eight years after the plaintiff reaches majority  
             (i.e., 26 years of age) or within three years of the date the  
             plaintiff discovers or reasonably should have discovered that  
             the psychological injury or illness occurring after the age  
             of majority was caused by the abuse, whichever occurs later.   
             (CCP Section 340.1)

           3. Provides that in civil actions, as described above, against  
             persons or entities other than the perpetrator, whose  
             intentional, negligent, or wrongful act was the legal cause  
             of the sex abuse, the plaintiff must show that the person or  
             entity knew or had reason to know, or was otherwise on  
             notice, of unlawful sexual conduct of an employee or agent,  
             and failed to take reasonable steps, as specified, to avoid  
             acts of unlawful sexual conduct in the future.  (CCP Section  
             340.1)

           4. For a period of one year commencing January 1, 2003,  
             existing law revived certain actions that would otherwise be  
             barred solely because the applicable statute of limitations  
             had expired.

          This bill:


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          1. Provides that the time limits for commencement of an action  
             for recovery of damages suffered as a result of childhood  
             sexual abuse be applied retroactively to any claim that has  
             not been adjudicated to finality on the merits as of January  
             1, 2014. 

          2. Revives, for a period of one year, a cause of action, as  
             specified, that would otherwise be barred by the statute of  
             limitations as of January 1, 2014, provided that the  
             plaintiff's 26th birthday was before January 1, 2003, and the  
             plaintiff discovered the cause of his/her injury on or after  
             January 1, 2004.  

          3. Provides that a plaintiff is entitled to conduct discovery  
             before the court may rule on a motion challenging the  
             sufficiency of the plaintiff's showing that a person or  
             entity knew or had reason to know, or was otherwise on  
             notice, of any unlawful sexual conduct and failed to take  
             reasonable steps, and to implement reasonable safeguards, to  
             avoid those act in the future. 

          4. Specifies that this entitlement does not apply to a cause of  
             action revived pursuant to these provisions.

           Background
           
          Before 1990, claims of childhood sexual abuse were governed by a  
          one year statute of limitations.  (CCP Section 340(3).)   
          However, if the cause of action accrued while the plaintiff was  
          a minor, the statute was tolled until he/she became an adult.   
          (CCP Section 352(a).)  Thus, any complaint had to be filed  
          within one year of the plaintiff's 18th birthday. 

          In 1990, the Legislature rewrote the statute of limitations for  
          cases involving adult trauma caused by childhood sexual abuse.   
          (SB 108 (Lockyer), Chapter 1578, Statutes of 1990)  That law  
          provides that the time for commencing an action based on  
          injuries resulting from "childhood sexual abuse" shall be eight  
          years after the plaintiff reaches majority (i.e., age 26) or  
          within three years of the date of the plaintiff discovers or  
          reasonably should have discovered that the psychological injury  
          or illness occurring after the age of majority was caused by the  
          abuse, whichever occurs later.  As subsequently interpreted by  
          the courts, SB 108 changed the statute of limitations for  

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          actions against the perpetrators, but did not change it for  
          actions against other responsible third parties.  (See Debbie  
          Reynolds Prof. Rehearsal Studios v. Superior Court (1994) 25  
          Cal.App.4th 222; Tietge v. Western Province of the Services  
          (1997) 55 Cal.App.4th 382)

          In 1998, the Legislature responded to this interpretation and  
          enacted AB 1651 (Ortiz, Chapter 1021, Statutes 1998) to apply  
          the extended statute of limitations in actions against third  
          parties.  However, any action against any person or entity other  
          than the sexual abuser would have to be commenced before the  
          plaintiff's 26th birthday.  (CCP Section 340.1(b).)  In 2002, SB  
          1779 (Burton and Escutia, Chapter 149, Statutes of 2002) was  
          enacted to extend the statute of limitations in cases against a  
          third party who was not the perpetrator of the sexual abuse  
          beyond age 26, when the third party knew or had reason to know  
          of complaints against an employee or agent for unlawful sexual  
          conduct and failed to take reasonable steps to avoid similar  
          unlawful conduct by that employee or agent in the future.  SB  
          1779 also created a one year window in which victims could bring  
          a claim against a third party, when that claim would have  
          otherwise been barred solely because the statute of limitations  
          had expired. 

          Almost 1,000 cases were filed in California during the one year  
          window in 2003.    However, between 2005 and 2012, about 50  
          cases were filed by victims who were over the age of 26 in 2003,  
          but did not make a causal connection between childhood abuse and  
          problems as an adult until after 2003.  The Quarry brothers, who  
          filed suit in 2007, were among those who filed one of these  
          cases.  The trial court dismissed the case based on their age in  
          2003 (over 26 years of age), stating that the brothers should  
          have brought their case within the one year window under SB  
          1779.  The First District Court of Appeal reversed the trial  
          court's decision, and held that the one year window only applied  
          to victims who were both over the age of 26 and had made the  
          required causal connection more than three years prior to  
          January 1, 2003.  It held that victims like the Quarry brothers  
          were not barred as of January 1, 2003, and could avail  
          themselves of the option of filing a claim within three years  
          from discovery. 

          Ultimately the Quarry case and about 20 others were taken up by  
          the California Supreme Court.  (Quarry v. Doe (2009) 53 Cal.4th  

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          945.)  The Court held that the Legislature failed to make its  
          retroactive intent in SB 1779 clear, and the rules of statutory  
          construction required that when the Legislature amends a statute  
          of limitations, that amendment is presumed to be prospective,  
          and is retroactive only if the Legislature expressly provides  
          that it is intended to be retroactive and revive previously  
          time-barred claims.  The majority found the language of SB 1779  
          did not satisfy that rule of construction, and must be  
          interpreted prospectively, or limited to the one year window.   
          The dissent disagreed, and invited the Legislature to fix the  
          problem.

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

           SUPPORT  :   (Verified  5/28/13)

          National Center for Victims of Crime (source)
          California Coalition Against Sexual Assault
          California Police Chiefs
          California Protective Parents Association
          Child Abuse Listening Mediation, Inc.
          College Democrats at Pacific Union College
          Consumer Attorneys of California
          Crime Victims United
          Lawyers Against the Sex Abuse of Children
          National Partnership to End Interpersonal Violence Across the  
          Lifespan
          National Safe Child Coalition
          Waste Less Living, Inc.

           OPPOSITION  :    (Verified  5/28/13)

          Almaden Country School
          Alverno High School
          Berkeley Hall School
          California Association of Private School Organizations
          California Catholic Conference
          California Council of Nonprofit Organizations
          Clairbourn School
          Crestview Preparatory School
          Echo Horizon School
          Flintridge Sacred Heart Academy
          Konocti Christian Academy

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          Los Encinos School
          Miriam School
          New Community Jewish High School
          PS1 Pluralistic School
          Rolling Hills Preparatory School
          Sacramento Country Day School
          Sea Crest School, St. Matthew's Parish School
          Stoneybrooke Christian Schools
          Viewpoint School,
          Village School
          Webb Schools
          Wesley School, Westmark School
          Wildwood School

           ARGUMENTS IN SUPPORT  :    According to the author, "Over the last  
          27 years the California Legislature has come to have a better  
          understanding of the insidious and latent nature of the injuries  
          suffered by a child who has been sexually abused and the reasons  
          why victims of childhood sex abuse often wait years before  
          reporting the abuse to law enforcement or otherwise.  California  
          Code of Civil Procedure Section 340.1, a remedial statute  
          intended to provide redress the child sex abuse victims, has  
          been amended no less than five times since its original  
          enactment in 1986, consistent with this evolving knowledge of  
          the latent effects of the original abuse."

           ARGUMENTS IN OPPOSITION  :    The opposition argues that many  
          private entities acted in reliance on SB 1779 (Burton and  
          Escutia) which created a one year window in which victims of  
          child sex abuse could bring claims.  The Sacramento Country Day  
          School writes that this bill will "break faith with assurances  
          given by the Legislature ten years ago when it enacted SB 1779  
          (Burton), a one-time, one year lifting of the statute of  
          limitations for all of 2003 that allowed any victim of sexual  
          abuse-regardless of how long ago it occurred-a second chance to  
          file a lawsuit."


          AL:k  5/28/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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