BILL NUMBER: SB 1511	CHAPTERED
	BILL TEXT

	CHAPTER   121
	FILED WITH SECRETARY OF STATE   JULY 10, 1998
	APPROVED BY GOVERNOR   JULY 9, 1998
	PASSED THE ASSEMBLY   JUNE 25, 1998
	PASSED THE SENATE   MAY 14, 1998
	AMENDED IN SENATE   MAY 5, 1998

INTRODUCED BY   Senator Haynes
   (Principal coauthor:  Assembly Member Olberg)
   (Coauthor:  Senator Rainey)
   (Coauthors:  Assembly Members Ackerman, Baldwin, Bordonaro,
Campbell, Granlund, Leach, Margett, Morrow, Oller, Richter, and
Woods)

                        FEBRUARY 6, 1998

   An act to amend Section 128.6 of, and to amend and repeal Section
128.7 of, the Code of Civil Procedure, relating to civil procedure.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1511, Haynes.  Civil procedure:  sanctions.
   Existing law requires every pleading, petition, written notice of
motion, or other similar paper to be signed by the attorney of
record, or if a party is unrepresented, by the party, thereby
certifying to the best of the person's knowledge, information, and
belief that it is not being presented for an improper purpose, as
specified, and that the claims, defenses, legal, and factual
contentions are warranted, as specified.  Existing law provides that
trial courts may impose sanctions upon attorneys, law firms, or
parties that violate these provisions in a complaint, petition, or
other paper filed after January 1, 1995, and also provides for the
repeal of these provisions as of January 1, 1999.
   This bill would  extend the repeal  date of these provisions to
January 1, 2003.
   Existing law, operative January 1, 1999, contingent upon the
repeal of the first specified provision, provides that every trial
court may order a party, the party's attorney, or both to pay
reasonable expenses, including attorney's fees, incurred by another
party as a result of a bad faith action or tactic that is frivolous
or solely intended to cause unnecessary delay.
   This bill would instead provide for this provision to become
operative as of January 1, 2003, if the first described provision is
repealed as of that date.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 128.6 of the Code of Civil Procedure is amended
to read:
   128.6.  (a) Every trial court may order a party, the party's
attorney, or both to pay any reasonable expenses, including attorney'
s fees, incurred by another party as a  result of bad-faith actions
or tactics that are frivolous or solely intended to cause unnecessary
delay.  This section also applies to judicial arbitration
proceedings under Chapter 2.5 (commencing with Section 1141.10) of
Title 3 of Part 3.
   (b) For purposes of this section:
   (1) "Actions or tactics" include, but are not limited to, the
making or opposing of motions or the filing and service of a
complaint or cross-complaint.  The mere filing of a complaint without
service thereof on an opposing party does not constitute "actions or
tactics" for purposes of this section.
   (2) "Frivolous" means (A) totally and completely without merit or
(B) for the sole purpose of harassing an opposing party.
   (c) Expenses pursuant to this section shall not be imposed except
on notice contained in a party's moving or responding papers; or the
court's own motion, after notice and opportunity to be heard.  An
order imposing expenses shall be in writing and shall recite in
detail the conduct or circumstances justifying the order.
   (d) In addition to any award pursuant to this section for conduct
described in subdivision (a), the court may assess punitive damages
against the plaintiff upon a determination by the court that the
plaintiff's action was an action maintained by a person convicted of
a felony against the person's victim, or the victim's heirs,
relatives, estate, or personal representative, for injuries arising
from the acts for which the person was convicted of a felony, and
that the plaintiff is guilty of fraud, oppression, or malice in
maintaining the action.
   (e) The liability imposed by this section is in addition to any
other liability imposed by law for acts or omissions within the
purview of this section.
   (f) This section shall become operative on January 1,  2003,
unless a statute that becomes effective on or before this date
extends or deletes the repeal date of Section 128.7.
  SEC. 2.  Section 128.7 of the Code of Civil Procedure is amended to
read:
   128.7.  (a) Every pleading, petition, written notice of motion, or
other similar paper shall be signed by at least one attorney of
record in the attorney's individual name, or, if the party is not
represented by an attorney, shall be signed by the party.  Each paper
shall state the signer's address and telephone number, if any.
Except when otherwise provided by law, pleadings need not be verified
or accompanied by affidavit.  An unsigned paper shall be stricken
unless omission of the signature is corrected promptly after being
called to the attention of the attorney or party.
   (b) By presenting to the court, whether by signing, filing,
submitting, or later advocating, a pleading, petition, written notice
of motion, or other similar paper, an attorney or unrepresented
party is certifying that to the best of the person's knowledge,
information, and belief, formed after an inquiry reasonable under the
circumstances, all of the following conditions are met:
   (1) It is not being presented primarily for an improper purpose,
such as to harass or to cause unnecessary delay or needless increase
in the cost of litigation.
   (2) The claims, defenses, and other legal contentions therein are
warranted by existing law or by a nonfrivolous argument for the
extension, modification, or reversal of existing law or the
establishment of new law.
   (3) The allegations and other factual contentions have evidentiary
support or, if specifically so identified, are likely to have
evidentiary support after a reasonable opportunity for further
investigation or discovery.
   (4) The denials of factual contentions are warranted on the
evidence or, if specifically so identified, are reasonably based on a
lack of information or belief.
   (c) If, after notice and a reasonable opportunity to respond, the
court determines that subdivision (b) has been violated, the court
may, subject to the conditions stated below, impose an appropriate
sanction upon the attorneys, law firms, or parties that have violated
subdivision (b) or are responsible for the violation.  In
determining what sanctions, if any, should be ordered, the court
shall consider whether a party seeking sanctions has exercised due
diligence.
   (1) A motion for sanctions under this section shall be made
separately from other motions or requests and shall describe the
specific conduct alleged to violate subdivision (b).  Notice of
motion shall be served as provided in Section 1010, but shall not be
filed with or presented to the court unless, within 30 days after
service of the motion, or such other period as the court may
prescribe, the challenged paper, claim, defense, contention,
allegation, or denial is not withdrawn or appropriately corrected.
If warranted, the court may award to the party prevailing on the
motion the reasonable expenses and attorney's fees incurred in
presenting or opposing the motion.  Absent exceptional circumstances,
a law firm shall be held jointly responsible for violations
committed by its partners, associates, and employees.
   (2) On its own motion, the court may enter an order describing the
specific conduct that appears to violate subdivision (b) and
directing an attorney, law firm, or party to show cause why it has
not violated subdivision (b), unless, within 30 days of service of
the order to show cause, the challenged paper, claim, defense,
contention, allegation, or denial is withdrawn or appropriately
corrected.
   (d) A sanction imposed for violation of subdivision (b) shall be
limited to what is sufficient to deter repetition of this conduct or
comparable conduct by others similarly situated.  Subject to the
limitations in paragraphs (1) and (2), the sanction may consist of,
or include, directives of a nonmonetary nature, an order to pay a
penalty into court, or, if imposed on motion and warranted for
effective deterrence, an order directing payment to the movant of
some or all of the reasonable attorney's fees and other expenses
incurred as a direct result of the violation.
   (1) Monetary sanctions may not be awarded against a represented
party for a violation of paragraph (2) of subdivision (b).
   (2) Monetary sanctions may not be awarded on the court's motion
unless the court issues its order to show cause before a voluntary
dismissal or settlement of the claims made by or against the party
that is, or whose attorneys are, to be sanctioned.
   (e) When imposing sanctions, the court shall describe the conduct
determined to constitute a violation of this section and explain the
basis for the sanction imposed.
   (f) In addition to any award pursuant to this section for conduct
described in subdivision (b), the court may assess punitive damages
against the plaintiff upon a determination by the court that the
plaintiff's action was an action maintained by a person convicted of
a felony against the person's victim, or the victim's heirs,
relatives, estate, or personal representative, for injuries arising
from the acts for which the person was convicted of a felony, and
that the plaintiff is guilty of fraud, oppression, or malice in
maintaining the action.
   (g) This section shall not apply to disclosures and discovery
requests, responses, objections, and motions.
   (h) A motion for sanctions brought by a party or a party's
attorney primarily for an improper purpose, such as to harass or to
cause unnecessary delay or needless increase in the cost of
litigation, shall itself be subject to a motion for sanctions.  It is
the intent of the Legislature that courts shall vigorously use its
sanctions authority to deter such improper conduct or comparable
conduct by others similarly situated.
   (i) This section shall apply to a complaint or petition filed on
or after January 1, 1995, and any other pleading, written notice of
motion, or other similar paper filed in such a matter.
   (j) This section shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.