BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1796


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          Date of Hearing:  March 8, 2016


                           ASSEMBLY COMMITTEE ON JUDICIARY


                                  Mark Stone, Chair


          AB 1796  
          (Wilk) - As Introduced February 4, 2016


                    PROPOSED CONSENT (As Proposed to be Amended)


          SUBJECT:  CIVIL ACTIONS: INTERVENTION


          KEY ISSUE:  SHOULD A NON-CONTROVERSIAL LITIGATION PRACTICE,  
          WHICH ALLOWS A PERSON SEEKING TO INTERVENE IN AN ONGOING LAWSUIT  
          THE OPTION TO FILE AN ANSWER-IN-INTERVENTION, RATHER THAN A  
          COMPLAINT-IN-INTERVENTION, BE CODIFIED?


                                      SYNOPSIS


          Currently, a person who is not party to an existing lawsuit but  
          wants to join that lawsuit applies for intervention - a  
          procedural mechanism which generally allows a third person to  
          either join a plaintiff or a defendant in an ongoing legal  
          action.  After a court grants the intervention, the intervenor  
          pleads by filing a complaint-in-intervention. However, since  
          filing a complaint is normally associated with a plaintiff, the  
          current intervention pleading method (i.e.  
          complaint-in-intervention) makes it difficult for the existing  
          parties to determine which side the intervenor has joined. 









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          This non-controversial bill merely allows intervenors the option  
          of filing an alternative intervention pleading: an  
          answer-in-intervention.  By codifying an existing practice, this  
          bill provides clarity to existing law and makes it easier for  
          parties to locate specific pleadings when searching through the  
          court's documents.  This bill also makes technical and  
          clarifying amendments intended to clean-up a code section that  
          has not been amended since 1977.  The bill is sponsored by the  
          Conference of California Bar Associations, and has received no  
          opposition.


          SUMMARY:  Allows a party seeking to intervene the option of  
          filing an answer-in-intervention, rather than a  
          complaint-in-intervention.  Specifically, this bill:


          1)Provides that a person seeking to intervene shall timely seek  
            leave of court by setting forth the grounds upon which the  
            intervention rests and by lodging a complaint, an answer, or  
            both. 


          2)Provides that the service of pleadings after the court has  
            granted leave to intervene includes a copy of the order  
            granting intervention, or a notice of the court's decision or  
            order.


          3)Makes other technical and conforming changes.


          EXISTING LAW:  


          1)Provides that upon timely application, any person who has an  
            interest in the matter in litigation, or in the success of  
            either of the parties, or an interest against both, may  








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            intervene in the action or the proceeding.  (Code of Civil  
            Procedure Section 387.  All further references are to this  
            code unless otherwise stated.)


          2)Provides that an intervention takes place when a third person  
            is permitted to become a party to an action or proceeding  
            between other persons, either by joining the plaintiff in  
            claiming what is sought by the complaint, or by uniting with  
            the defendant in resisting the claims of the plaintiff, or by  
            demanding anything adversely to both the plaintiff and the  
            defendant. Provides that the intervention is made by  
            complaint, setting forth the grounds upon which the  
            intervention rests, filed by leave of the court and served  
            upon the parties, as provided. (Section 387(a).)


          3)Provides that a party served with a complaint in intervention  
            may within 30 days after service move, demur, or otherwise  
            plead to the complaint in the same manner as to an original  
            complaint.  (Id.)


          4)Requires a court, upon timely application, to permit a person  
            to intervene if any provision of law confers an unconditional  
            right to intervene or if the person seeking intervention  
            claims an interest relating to the property or transaction  
            which is the subject of the action and that person is so  
            situated that the disposition of the action may as a practical  
            matter impair or impede that person's ability to protect that  
            interest, unless that person's interest is adequately  
            represented by existing parties.  (Section 387(b).)


          5)Provides that a plaintiff includes a cross-complainant or a  
            party who files a complaint in intervention, and that a  
            defendant includes a cross-defendant, or a person against whom  
            a complaint is filed.  (Section 1032.)









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          FISCAL EFFECT:  As currently in print this bill is keyed  
          non-fiscal.


          COMMENTS:  In a civil case, a lawsuit might begin when a  
          plaintiff files a complaint against a defendant and alleges (or  
          pleads) facts and causes of action.  Then, the defendant files  
          an answer to that complaint, outlining (or pleading) defenses or  
          admissions to those allegations.  As this lawsuit proceeds, a  
          third person-who is not a party to the lawsuit-may determine  
          that the lawsuit affects him or her, and that he or she needs to  
          participate in the action to protect his or her rights.  To do  
          so, the person asks the court to join or intervene in the  
          lawsuit.  If the court grants the request, the person must file  
          pleadings, and the lawsuit continues with an additional party. 


          Intervention is a procedural mechanism that allows a third  
          person to join an existing legal action.  The main purpose of  
          intervention is to prevent delay and discourage the multiplicity  
          of lawsuits by creating an opportunity for those who are  
          directly affected in the subject matter to join an action that  
          has already been instituted.  (Belt Casualty Co. v. Furman  
          (1933) 218 Cal. 359, 362.)


          Generally, in order to intervene, the third person must request  
          permission from the court, and demonstrate why he or she should  
          be allowed to intervene.  If permitted to intervene, the third  
          person may join the plaintiff, the defendant, or sometimes, take  
          a position that is adverse to both parties.  Under current law,  
          an intervening person pleads by filing a  
          complaint-in-intervention, even if the intervening person is  
          joining the defendant.


          According to the author, requiring an intervenor who is aligned  
          with the defendant to file a complaint-in-intervention - a  








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          pleading normally associated with a plaintiff, creates confusion  
          as to the posture of the intervenor.  


          This modest bill merely allows a person who seeks to intervene  
          in a pending action the option of pleading with an  
          answer-in-intervention, rather than a complaint-in-intervention.  
           According to the author and the sponsors of the bill, this will  
          help eliminate the confusion over the status of an intervenor in  
          a civil action by specifying that the intervening party's  
          pleadings be clearly designated as either a  
          complaint-in-intervention, or an answer-in-intervention.


          An answer-in-intervention is not new; California courts have  
          long recognized that parties seeking to intervene may file an  
          answer-in-intervention.  (See People v. Rath Packing Co. (1978)  
          85 Cal. App. 3d 308, 317; Fuller v. San Bernardino Valley  
          Municipal Water Dist. (1966) 242 Cal. App. 2d 52, 55; California  
          Bank v. Stimson (1949) 89 Cal. App. 2d 552, 553; Miller v.  
          Pierce (1944) 66 Cal. App. 2d 126, 130.)  Since an  
          answer-in-intervention already exists at common law, this bill  
          will merely codify this well-established practice.  


          There is, however, value in codifying this practice.  This bill  
          provides clarity to intervening parties on the available  
          pleading methods, particularly unrepresented parties who may be  
          unfamiliar with intervention.  Moreover, by establishing this  
          practice in law, this bill should make it easier for parties to  
          locate specific pleadings when searching through the court's  
          records.  This bill also codifies a best practice where the  
          service of pleadings after the court has granted leave to  
          intervene includes a copy of the order granting intervention, or  
          a notice of the court's decision or order.


          Although a complaint and an answer operate differently  
          procedurally, this bill does not seek to affect the rights of  








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          intervening parties.  For example, an intervening person who  
          files an answer-in-intervention could still file a demurrer  
          under the Code of Civil Procedure.  By providing an  
          answer-in-intervention, this bill simply provides additional  
          clarity to the statute.  To that end, this bill, as proposed to  
          be amended, also makes technical and clarifying amendments  
          intended to clean-up a code section that has not been amended  
          since 1977.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Conference of California Bar Associations (sponsor)




          Opposition


          None on file




          Analysis Prepared by:Eric Dang / JUD. / (916) 319-2334















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