AB 1682, as introduced, Mark Stone. Confidential settlement agreements:
Existing law prohibits a confidential settlement agreement in a civil action with a factual foundation establishing a cause of action for civil damages for an act that may be prosecuted as a felony sex offense. Existing law provides that the prohibition does not affect the ability of parties to enter into a settlement agreement or stipulated agreement requiring nondisclosure of the amount of money paid in settlement of a claim.
This bill would additionally prohibit a confidential settlement agreement in a civil action with a factual foundation establishing a cause of action for civil damages for an act of childhood sexual abuse or sexual exploitation of a minor, as defined. The bill would repeal the provision specifying that a settlement agreement or stipulated agreement that requires nondisclosure of the amount of money paid in settlement of a claim is not prohibited. The bill would make a confidential settlement agreement, as described in the bill, entered into on or after January 1, 2017, void as a matter of law and against public policy. The bill would make an attorney who demands such a confidential settlement agreement as a condition of settlement or who advises a client to sign such an agreement subject to professional discipline and would require the State Bar of California to investigate and take appropriate action in cases brought to its attention.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1002 of the Code of Civil Procedure is
2amended to read:
(a) Notwithstanding any otherbegin delete provision ofend delete law, a
4confidential settlement agreement is prohibited in any civil action
5the factual foundation for which establishes a cause of action for
6civil damages forbegin delete an act that may be prosecuted as a felony sex begin insert any of the following:end insert
7offense.end delete
8(1) An act that may be prosecuted as a felony sex offense.
end insertbegin insert
9(2) An act of childhood sexual abuse, as defined in Section
10340.1.
11(3) An act of sexual exploitation of a minor, as defined in Section
1211165.1 of the Penal Code.
13(b) Subdivision (a) does not preclude an agreement preventing
14thebegin delete defendant or any person acting on his or her behalf from begin insert disclosure ofend insert any medical information or personal
15disclosingend delete
16identifying information, as defined in subdivision (b) of Section
17begin delete 530.5end deletebegin insert 530.55end insert
of the Penal Code, regarding the victim of thebegin delete felony offensebegin insert listed in subdivision (a)end insert or of any information revealing
18sexend delete
19the nature of the relationship between the victim and the defendant.
20This subdivision shall not be construed to limit the right of a crime
21victim to disclose this information.
22(c) Subdivision (a) does not apply to or affect the ability of the
23parties to enter into a settlement agreement or stipulated agreement
24that requires the nondisclosure of the amount of any money paid
25in a settlement of a claim.
26(c) An agreement described in subdivision (a) that is entered
27into on or after January 1, 2017, is void as a matter of law and
28against public policy. An attorney who demands a confidential
29settlement agreement described in subdivision (a) as a condition
30of settlement or who advises a client to sign such an agreement
31shall be subject to professional discipline and the State Bar of
P3 1California shall investigate and take appropriate action in any
2such case brought to its attention.
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