BILL NUMBER: SB 1841	CHAPTERED
	BILL TEXT

	CHAPTER   77
	FILED WITH SECRETARY OF STATE   JUNE 26, 1998
	APPROVED BY GOVERNOR   JUNE 25, 1998
	PASSED THE ASSEMBLY   JUNE 15, 1998
	PASSED THE SENATE   MAY 7, 1998

INTRODUCED BY   Senator Burton

                        FEBRUARY 19, 1998

   An act to amend Section 883 of the Code of Civil Procedure, and to
amend Sections 2401.5, 8480, 9602, and 16441 of the Probate Code,
relating to liability.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1841, Burton.  Liability:  breach of trust or duty.
   Existing law provides that a joint debtor, other than a joint
tortfeasor, entitled to compel contribution or repayment in a civil
action, may apply for an order determining liability for contribution
or repayment at any time before the judgment is satisfied in full or
within 10 days thereafter.
   This bill would extend that time to within 30 days after the
judgment is satisfied in full.
   Existing law imposes liability for a breach of trust by a trustee,
or a breach of a fiduciary duty by a guardian or conservator or a
personal representative.  That liability is in the amount of the loss
or depreciation to the estate, the loss of profit that would have
accrued to the estate, or the profit to the person who breached the
trust or duty.  However, where that person acted reasonably and in
good faith under the circumstances known to the person at the time,
the court is authorized to excuse the person, in whole or in part,
from liability.  Existing law also makes that person liable for
interest on the amount for which he or she is held liable.
   This bill would authorize the court to excuse the persons
described above from liability for the interest where those persons
act reasonably and in good faith under the circumstances known to
them at the time.
   Existing law requires every person appointed as a personal
representative to give a bond conditioned on the faithful execution
of the duties of the office.  Where 2 or more persons are appointed,
the court may require either a separate bond from each or a joint and
several bond.
   This bill would provide that if a joint bond is furnished, the
liability on the bond is joint and several.


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


  SECTION 1.  Section 883 of the Code of Civil Procedure is amended
to read:
   883.  (a) A judgment debtor entitled to compel contribution or
repayment pursuant to this chapter may apply on noticed motion to the
court that entered the judgment for an order determining liability
for contribution or repayment.  The application shall be made at any
time before the judgment is satisfied in full or  within 30 days
thereafter.
   (b) The order determining liability for contribution or repayment
entitles the judgment debtor to the benefit of the judgment to
enforce the liability, including every remedy that the judgment
creditor has against the persons liable, to the extent of the
liability.
   (c) Nothing in this section limits any other remedy that a
judgment debtor entitled to contribution or repayment may have.
  SEC. 2.  Section 2401.5 of the Probate Code is amended to read:
   2401.5.  (a) If the guardian or conservator is liable for interest
pursuant to Section 2401.3, the guardian or conservator is liable
for the greater of the following amounts:
   (1) The amount of interest that accrues at the legal rate on
judgments.
   (2) The amount of interest actually received.
   (b) If the guardian or conservator has acted reasonably and in
good faith under the circumstances as known to the guardian or
conservator, the court, in its discretion, may excuse the guardian or
conservator in whole or in part from liability under subdivision (a)
if it would be equitable to do so.
  SEC. 3.  Section 8480 of the Probate Code is amended to read:
   8480.  (a) Except as otherwise provided by statute, every person
appointed as personal representative shall, before letters are
issued, give a bond approved by the court.  If two or more persons
are appointed, the court may require either a separate bond from each
or a joint and several bond.  If a joint bond is furnished, the
liability on the bond is joint and several.
   (b) The bond shall be for the benefit of interested persons and
shall be conditioned on the personal representative's faithful
execution of the duties of the office according to law.
   (c) If the person appointed as personal representative fails to
give the required bond, letters shall not be issued.  If the person
appointed as personal representative fails to give a new, additional,
or supplemental bond, or to substitute a sufficient surety, under
court order, the person may be removed from office.
  SEC. 4.  Section 9602 of the Probate Code is amended to read:
   9602.  (a) If the personal representative is liable for interest
pursuant to Section 9601, the personal representative is liable for
the greater of the following amounts:
   (1) The amount of interest that accrues at the legal rate on
judgments.
   (2) The amount of interest actually received.
   (b) If the personal representative has acted reasonably and in
good faith under the circumstances as known to the personal
representative, the court, in its discretion, may excuse the personal
representative in whole or in part from liability under subdivision
(a) if it would be equitable to do so.
  SEC. 5.  Section 16441 of the Probate Code is amended to read:
   16441.  (a) If the trustee is liable for interest pursuant to
Section 16440, the trustee is liable for the greater of the following
amounts:
   (1) The amount of interest that accrues at the legal rate on
judgments in effect during the period when the interest accrued.
   (2) The amount of interest actually received.
   (b) If the trustee has acted reasonably and in good faith under
the circumstances as known to the trustee, the court, in its
discretion, may excuse the trustee in whole or in part from liability
under subdivision (a) if it would be equitable to do so.