BILL ANALYSIS Ó AB 1796 Page 1 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. AB 1796 Page 2 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 AB 1796 Page 3 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.) AB 1796 Page 4 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 AB 1796 Page 5 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 AB 1796 Page 6 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 AB 1796 Page 7