BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 131 (Beall) - Damages: childhood sexual abuse: statute of  
          limitations.
          
          Amended: May 9, 2013            Policy Vote: Judiciary 5-1
          Urgency: No                     Mandate: No
          Hearing Date: May 23, 2013      Consultant: Jolie Onodera
          
          SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          
          
          Bill Summary: SB 131 would extend the statute of limitations for  
          civil actions for recovery of damages suffered as a result of  
          childhood sexual abuse to be commenced, as follows:
                 For actions against the perpetrator, to within 25 years  
               (currently within 8 years) of the date the plaintiff  
               reaches the age of majority or within five years (currently  
               within 3 years of discovery) of the date the fact of the  
               psychological injury and its causal connection to the  
               sexual abuse is first communicated to the plaintiff by a  
               licensed mental health practitioner, whichever occurs  
               later.
                 For actions against third parties, within 12 years  
               (currently within 8 years) of the date the plaintiff  
               reaches the age of majority or within five years (currently  
               within 3 years of discovery) of the date the fact of the  
               psychological injury and its causal connection to the  
               sexual abuse is first communicated to the plaintiff by a  
               licensed mental health practitioner, whichever occurs  
               later.
                 Provides that the time limits noted above for  
               commencement of an action shall be applied retroactively,  
               and would revive, for a period of one year, a cause of  
               action against a third party that would otherwise be barred  
               by the statute of limitations as of January 1, 2014,  
               provided that the plaintiff discovered the cause of his or  
               her injury through communication by a mental health  
               practitioner on or after January 1, 2004. 
                 Provides that a plaintiff shall be 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 by an employee or  








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               agent, and failed to take reasonable steps to avoid those  
               acts in the future.

          Fiscal Impact (as approved on May 23, 2013): Unknown,  
          potentially significant state court costs (General Fund) to the  
          extent providing for the one-year retroactive window results in  
          additional civil cases. For every 25 additional claims filed,  
          assuming one week of court time, annual costs potentially in  
          excess of $500,000 (General Fund). 
            
          Background: Claims of childhood sexual abuse were governed by a  
          one-year statute of limitations prior to 1990. If the cause of  
          action accrued while the plaintiff was a minor, the statute was  
          tolled until the minor reached the age of majority, and a  
          complaint had to be filed within one year of the plaintiff's  
          18th birthday.
          
          SB 108 (Lockyer) Chapter 1578/1990 rewrote the statute of  
          limitations and extended the time limit for commencing an action  
          based on injuries resulting from childhood sexual abuse to eight  
          years after the age of majority (age 26) or within three years  
          of the date of discovery, whichever occurs later. SB 108 was  
          determined to apply only to actions against perpetrators, and  
          not actions against third parties. In 1998, AB 1651 (Ortiz)  
          Chapter 1021/1998 applied the extended statute of limitations to  
          actions against third parties. In 2002, SB 1779 (Burton/Escutia)  
          was enacted to extend the statute of limitations in cases  
          against a third party beyond age 26, when the third party knew  
          or had reason to know of complaints against an employee and  
          failed to take reasonable steps to prevent similar unlawful  
          conduct. In addition, SB 1779 created a one-year window in which  
          victims of any age 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 during the one-year period in  
          2003. Subsequently, between 2005 and 2012, about 50 cases were  
          filed by victims who were over age 26 in 2003 but did not make a  
          causal connection until after 2003. The Quarry brothers who  
          filed suit in 2007, had their case dismissed based on their age  
          in 2003 (over 26 years), where the court stated that the  
          brothers should have brought their case within the one-year  
          window under SB 1779. Ultimately, in Quarry v. Doe (2009) 53  
          Cal.4th 945, the court held that the Legislature failed to make  








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          its retroactive intent clear in SB 1779, and found the language  
          did not expressly provide for retroactivity and revive  
          previously time-barred claims. 
          
          Proposed Law: This bill would extend the statute of limitations  
          on actions against a person for committing an act of childhood  
          sexual abuse to 43 years (from the current 26 years) for actions  
          against a perpetrator, and would extend the statute of  
          limitations to 30 years of age (from the current 26 years) for  
          actions against third parties. 

          In addition, under current law, a claim may made against a  
          perpetrator or third party within three years of the date the  
          plaintive discovers or reasonably should have discovered that  
          the injury occurring after the age of majority was caused by the  
          abuse. This bill would extend and revise this provision of law  
          and allow claims against perpetrators and third parties within  
          five years of the date a mental health practitioner first  
          communicates the causal connection to the plaintiff. 

          This bill would apply the time limits retroactively to any claim  
          not adjudicated to finality on the merits as of January 1, 2014.  
          In addition, this bill creates a one-year window for actions  
          against third parties (excluding public entities) that would  
          otherwise be barred by the statute of limitations as of January  
          1, 2014, provided the plaintiff made the causal connection by  
          being informed by a licensed mental health practitioner after  
          January 1, 2004. 

          Related Legislation: AB 1628 (Beall) 2012 would have extended  
          the statute of limitations in civil cases involving child sexual  
          abuse to 35 years of age, prohibited confidential settlements,  
          and imposed new duties on private entities. This bill was held  
          in the Assembly Committee on Appropriations.

          SB 640 (Simitian) Chapter 383/2008 provided that child sex abuse  
          claims are not subject to the Government Torts Claim Act, which  
          provides that no lawsuit for money damages may be brought  
          against a governmental entity unless a written claim has been  
          properly filed within a six-month time limit. The bill's  
          provisions have been applied prospectively, thereby allowing  
          child sex abuse claims against public entities arising out of  
          conduct occurring on or after January 1, 2009, to not be limited  
          by the six-month time period.








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          Staff Comments: By extending the statute of limitations for  
          bringing an action against an alleged perpetrator or third  
          party, as well as reviving for one year a cause of action  
          against a third party that would otherwise be barred by the  
          statute of limitations as of January 1, 2014, as specified, this  
          bill would result in increased causes of action filed with the  
          courts. In addition, the change from the objective and  
          subjective component under the existing standard of "within  
          three years of the date the plaintiff discovers or reasonably  
          should have discovered," to "within five years of the date the  
          sexual abuse is first communicated to the plaintiff by a  
          licensed mental health practitioner practicing within the  
          state," could significantly extend the period of time in which a  
          plaintiff has to file a claim. 

          This bill would apply the extended time limits retroactively,  
          and create a one-year period in which victims who would  
          otherwise have been time barred to submit a claim provided  
          he/she made the required causal connection, as redefined, after  
          2004. This one year window would allow individuals who are over  
          the maximum age allowed by the statute of limitations, but who  
          made the causal connection after the one year window created by  
          SB 1779 (2002), to bring a case against a third party. The  
          following individuals could potentially be eligible to file a  
          claim:

               Persons older than 26 years as of December 31, 2013, and  
              who discovered the connection under the existing standards  
              more than three years prior to that date.
               Persons who were older than 26 years prior to 2003 and who  
              discovered the connection before 2003 (claimants who failed  
              to file during the one-year revival period in 2003).
               Persons who were older than 26 prior to 2003 but who  
              didn't discover the connection until after 2003 (those  
              barred by the Quarry case).

          In order to be eligible, the plaintiffs in the categories above  
          would have to "discover the cause of his or her injuries," by  
          being informed by a mental health practitioner on or after  
          January 1, 2004. In practical terms, even plaintiffs who would  
          have been barred under the existing standard of "knew or should  
          have known," could potentially file a claim due to the delayed  
          discovery standard requiring communication with a mental health  








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          practitioner of the injury.

          The provisions of this measure are not anticipated to have an  
          impact on the decision in Shirk v. Vista Unified School District  
          (2007) 42 Cal.4th 201, in which  the California Supreme Court  
          held that a timely public entity six-month claim is a  
          prerequisite to maintaining an action for childhood sexual abuse  
          against a public entity school district.  The Court based its  
          holding primarily on its finding that nothing in the express  
          language or legislative history indicated intent by the  
          Legislature to exempt Section 340.1 claims from the Act and its  
          six-month claim presentation requirement. Therefore, no claims  
          arising out of injuries suffered by victims of abuse by  
          employees of public entities where the conduct occurred prior to  
          January 1, 2009, would be eligible under this bill's revival  
          period. The extended and revised statute of limitations would  
          apply prospectively, however, for claims based on allegations of  
          abuse after January 1, 2009 (pursuant to provisions enacted  
          under SB 640 (Simitian) 2008, noted above). 

          It is unknown how many additional claims will be brought under  
          the retroactive and prospective provisions of this bill, but for  
          every 25 to 50 additional claims, assuming one week of court  
          time, costs would be in the range of $500,000 to $1 million  
          (General Fund), utilizing an estimated daily court cost of  
          $4,000. To the extent this bill results in extended litigation  
          due to the provision entitling plaintiffs to conduct discovery  
          before the court may rule on a motion challenging the  
          sufficiency of the plaintiff's showing in cases that otherwise  
          would have been dismissed, could also lead to increased  
          litigation costs.

          To the extent the provisions of this measure impact the  
          operation and enrollment levels of private schools statewide to  
          a level that causes some degree of displacement from private to  
          public school enrollment could result in future General Fund  
          cost pressure of an unknown, but potentially significant amount.

          Committee Amendments: 
                 Revert the statute of limitations and delayed discovery  
               provisions for actions against all parties back to existing  
               law. 
                 Narrow the retroactive one-year window to cases against  
               third parties that otherwise would have been barred solely  








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               by the statute of limitations as of January 1, 2014,  
               provided the plaintiff's 26th birthday was before January  
               1, 2003, and the plaintiff discovered the cause of his or  
               her injuries on or after January 1, 2004.