AB 1682,
as amended, Mark Stone. begin deleteConfidential settlement end deletebegin insertSettlement end insertagreements: 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 wouldbegin delete additionallyend deletebegin insert insteadend insert prohibit abegin delete confidentiality or secrecyend delete provision in a settlement agreementbegin insert
that prevents the disclosure of factual information related to the actionend insert in a civil action with a factual foundation establishing a cause of action for civil damagesbegin insert for an act that may be prosecuted as a felony sex offense and would additionally make these provisions applicable to a cause of action for civil damagesend insert 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 restricts disclosure of this information, as specified. 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 abegin delete confidentiality or secrecyend delete
provision in a settlementbegin delete agreement,end deletebegin insert agreement that prevents the disclosure of factual information related to the action,end insert 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 an attorney’s failure to comply with these provisionsbegin insert by demanding that a provision be included in a settlement agreement that prevents the disclosure of factual information related to the action, as specified, as a condition of settlement or advising a client to sign an agreement that includes such a provisionend insert may be grounds for 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 other law, abegin delete confidentiality or provision within a settlement agreementbegin insert that prevents the
4secrecyend delete
5disclosure of factual information related to the actionend insert is prohibited
6in any civil action the factual foundation for which establishes a
7cause of action for civil damages for any of the following:
8(1) An act that may be prosecuted as a felony sex offense.
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
12Section 11165.1 of the Penal Code, or conduct prohibited with
13
respect to a minor pursuant to Section 311.1, 311.5, or 311.6 of
14the Penal Code.
P3 1(4) An act of sexual assault, as defined in paragraphs (1) to (9),
2inclusive, of subdivision (e) of Section 15610.63 of the Welfare
3and Institutions Code, against an elder or dependent adult, as
4defined in Sections 15610.23 and 15610.7 of the Welfare and
5Institutions Code.
6(b) Notwithstanding any other law, in a civil action described
7inbegin insert paragraphs (1) to (4), inclusive, ofend insert subdivision (a), a court shall
8not enter, by stipulation or otherwise, an order that restricts the
9disclosure of information in a manner that conflicts with
10subdivision (a).
11(c) Subdivisions (a) and (b) do not preclude an agreement
12preventing the disclosure of any medical information or personal
13identifying information, as defined in subdivision (b) of Section
14530.55 of the Penal Code, regarding the victim of the offense listed
15in subdivision (a) or of any information revealing the nature of the
16relationship between the victim and the defendant. This subdivision
17shall not be construed to limit the right of a crime victim to disclose
18this information.
19(d) Except as authorized by subdivision (c), abegin delete confidentiality or provision within a settlement agreementbegin insert that prevents the
20secrecyend delete
21disclosure of factual information related to the actionend insert
described
22in subdivision (a) that is entered into on or after January 1, 2017,
23is void as a matter of law and against public policy.
24(e) An attorney’s failure to comply with the requirements of
25this sectionbegin insert by demanding that a provision be included in a
26settlement agreement that prevents the disclosure of factual
27information related to the action described in subdivision (a) that
28is not otherwise authorized by subdivision (c) as a condition of
29settlement, or advising a client to sign an agreement that includes
30such a provision,end insert may be grounds for professional discipline and
31the State Bar of California shall investigate and take appropriate
32action in any such case brought to its attention.
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