Amended in Senate August 2, 2016

Amended in Senate May 4, 2016

Amended in Assembly February 29, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1682


Introduced by Assembly Member Mark Stone

(Coauthor: Assembly Member Ting)

January 20, 2016


An act to amend Section 1002 of the Code of Civil Procedure, relating to civil procedure.

LEGISLATIVE COUNSEL’S DIGEST

AB 1682, as amended, Mark Stone. Confidential settlement agreements: sexual offenses.

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 confidentiality or secrecy provision in a 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 or an act of sexual assault against an elder or dependent adult, as specified. The bill would prohibit a court from entering an order in any of these types of civil actions that restrictsbegin delete access to information obtained through discovery, as prescribed.end deletebegin insert disclosure of this information, as specified.end insert 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 confidentiality or secrecy provision in a 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 provide that anbegin delete attorney who demands such a confidentiality or secrecy provision in a settlement agreement as a condition of settlement or who advises a client to sign an agreement with such a confidentiality or secrecy provision is presumed to have committed an act involving moral turpitude that is subject toend deletebegin insert attorney’s failure to comply with these provisions may beend insertbegin insert grounds forend insert 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:

P2    1

SECTION 1.  

Section 1002 of the Code of Civil Procedure is
2amended to read:

3

1002.  

(a) Notwithstanding any other law, a confidentiality or
4secrecy provision within a settlement agreement is prohibited in
5any civil action the factual foundation for which establishes a cause
6of action for civil damages for any of the following:

7(1) An act that may be prosecuted as a felony sex offense.

8(2) An act of childhood sexual abuse, as defined in Section
9340.1.

10(3) An act of sexual exploitation of a minor, as defined in
11Section 11165.1 of the Penal Code, or conduct prohibited with
12 respect to a minor pursuant tobegin delete Sectionsend deletebegin insert Sectionend insert 311.1, 311.5, or
13311.6 of the Penal Code.

14(4) An act of sexual assault, as defined in paragraphs (1) to (9),
15inclusive, of subdivision (e) of Section 15610.63 of the Welfare
16and Institutions Code, against an elder or dependent adult, as
17defined in Sections 15610.23 and 15610.7 of the Welfare and
18Institutions Code.

begin delete

P3    1(b) Notwithstanding any other law, in a civil action described
2in subdivision (a), a court shall not enter, by stipulation or
3otherwise, an order that does any of the following:

end delete
begin delete

4(1) Restricts the disclosure of information obtained through
5discovery.

end delete
begin delete

6(2) Approves a settlement agreement that would restrict the
7disclosure of information obtained through discovery.

end delete
begin delete

8(3) Restricts access to court records regarding information
9obtained through discovery.

end delete
begin insert

10
(b) Notwithstanding any other law, in a civil action described
11in subdivision (a), a court shall not enter, by stipulation or
12otherwise, an order that restricts the disclosure of information in
13a manner that conflicts with subdivision (a).

end insert

14(c) Subdivisions (a) and (b) do not preclude an agreement
15preventing the disclosure of any medical information or personal
16identifying information, as defined in subdivision (b) of Section
17530.55 of the Penal Code, regarding the victim of the offense listed
18in subdivision (a) or of any information revealing the nature of the
19relationship between the victim and the defendant. This subdivision
20shall not be construed to limit the right of a crime victim to disclose
21this information.

22(d) Except as authorized by subdivision (c), a confidentiality or
23secrecy provision within a settlement agreement described in
24subdivision (a) that is entered into on or after January 1, 2017, is
25void as a matter of law and against public policy. begin delete An attorney who
26demands a confidentiality or secrecy provision within a settlement
27agreement described in subdivision (a), that is not otherwise
28authorized by subdivision (c), as a condition of settlement or who
29advises a client to sign an agreement with such a confidentiality
30or secrecy provision is presumed to have committed an act
31involving moral turpitude, as set forth in Section 6106 of the
32Business and Professions Code and shall be subject to professional
33discipline and the State Bar of California shall investigate and take
34appropriate action in any such case brought to its attention.end delete

begin insert

35
(e) An attorney’s failure to comply with the requirements of this
36section may be grounds for professional discipline and the State
37Bar of California shall investigate and take appropriate action in
38any such case brought to its attention.

end insert


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