Amended in Senate March 28, 2016

Senate Bill No. 1306

Introduced by Senator Stone

February 19, 2016

An act to amend Section 1780 of the Civil Code, relating to consumer remedies.

LEGISLATIVE COUNSEL’S DIGEST

SB 1306, as amended, Stone. Consumer remedies: attorney’s fees and litigation begin delete costs: prevailing party. end delete begin insert costs. end insert

Existing law, the Consumer Legal Remedies Act, authorizes a consumer who suffers damage from the use of unfair methods of competition and unfair or deceptive acts, as defined, to bring an action to recover damages or other relief. Existing law requires a court to award court costs and attorney’s fees to the prevailing plaintiff in begin delete an action brought end delete begin insert litigation filed end insert pursuant to those provisions. Existing law also permits a court to award reasonable attorney’s fees to a prevailing defendant only if the court finds that the plaintiff’s prosecution of the action was not in good faith.

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This bill would revise those provisions to instead require a court to award court costs and attorney’s fees to the prevailing party in the action.

end delete begin insert

This bill, in litigation pertaining to the California Environmental Quality Act that is filed pursuant to the Consumer Legal Remedies Act, would require the court to award court costs and attorney’s fees to the prevailing party in the action.

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Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 1780 of the Civil Code is amended to
read:

1780.  

(a) Any consumer who suffers any damage as a result
of the use or employment by any person of a method, act, or
practice declared to be unlawful by Section 1770 may bring an
action against that person to recover or obtain any of the following:

(1) Actual damages, but in no case shall the total award of
damages in a class action be less than one thousand dollars
($1,000).

(2) An order enjoining the methods, acts, or practices.

(3) Restitution of property.

(4) Punitive damages.

(5) Any other relief that the court deems proper.

(b) (1) Any consumer who is a senior citizen or a disabled
person, as defined in subdivisions (f) and (g) of Section 1761, as
part of an action under subdivision (a), may seek and be awarded,
in addition to the remedies specified therein, up to five thousand
dollars ($5,000) where the trier of fact does all of the following:

(A) Finds that the consumer has suffered substantial physical,
emotional, or economic damage resulting from the defendant’s
conduct.

(B) Makes an affirmative finding in regard to one or more of
the factors set forth in subdivision (b) of Section 3345.

(C) Finds that an additional award is appropriate.

(2) Judgment in a class action by senior citizens or disabled
persons under Section 1781 may award each class member that
additional award if the trier of fact has made the foregoing findings.

(c) Whenever it is proven by a preponderance of the evidence
that a defendant has engaged in conduct in violation of paragraph
(24) of subdivision (a) of Section 1770, in addition to all other
remedies otherwise provided in this section, the court shall award
treble actual damages to the plaintiff. This subdivision shall not
apply to attorneys licensed to practice law in California, who are
subject to the California Rules of Professional Conduct and to the
mandatory fee arbitration provisions of Article 13 (commencing
with Section 6200) of Chapter 4 of Division 3 of the Business and
Professions Code, when the fees charged or received are for
providing representation in administrative agency appeal
proceedings or court proceedings for purposes of procuring,
maintaining, or securing public social services on behalf of a person
or group of persons.

(d) An action under subdivision (a) or (b) may be commenced
in the county in which the person against whom it is brought
resides, has his or her principal place of business, or is doing
business, or in the county where the transaction or any substantial
portion thereof occurred.

In any action subject to this section, concurrently with the filing
of the complaint, the plaintiff shall file an affidavit stating facts
showing that the action has been commenced in a county described
in this section as a proper place for the trial of the action. If a
plaintiff fails to file the affidavit required by this section, the court
shall, upon its own motion or upon motion of any party, dismiss
the action without prejudice.

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(e) The court shall award court costs and attorney’s fees to a
prevailing party in litigation filed pursuant to this section.

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(e) (1) Except as provided in paragraph (2), the court shall
award court costs and attorney’s fees to a prevailing plaintiff in
litigation filed pursuant to this section. Reasonable attorney’s fees
may be awarded to a prevailing defendant upon a finding by the
court that the plaintiff’s prosecution of the action was not in good
faith.

end insert begin insert

(2) In litigation pertaining to the California Environmental
Quality Act that is filed pursuant to this section, the court shall
award court costs and attorney’s fees to a prevailing party in the
action.

end insert