BILL NUMBER: SB 122 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 6, 2003
INTRODUCED BY Senator Escutia
FEBRUARY 4, 2003
An act to amend Section 17204 of add
Section 17204.6 to the Business and Professions Code, relating
to unfair competition.
LEGISLATIVE COUNSEL'S DIGEST
SB 122, as amended, Escutia. Private enforcement actions.
Existing law provides remedies for unfair competition that may be
enforced by a governmental agency, including the district attorney,
or by a private party acting for the interests of itself, its
members, or the general public.
This bill would require a private party bringing
, subject to specified exceptions, the court to review
attorney's fees in a proposed settlement, compromise, dismissal, or
disposition of an unfair competition action to notify
the district attorney and to file proof of service of the
notification with the court brought by a private party
on behalf of the general public . The bill would
preclude the court from awarding any relief until the proof of
service has been filed also specify disgorgement as an
available remedy for acts of unfair competition and would set forth
principles for joining these actions. The bill would make its
provisions contingent upon AB 95 being enacted and becoming effective
on or before January 1, 2004 .
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 17204 of the Business and Professions
SECTION 1. Section 17204.6 is added to the Business and
Professions Code, to read:
17204.6. (a) In a private action for relief brought on behalf of
the general public, a court shall review attorney's fees in a
proposed settlement, compromise, dismissal, or disposition on the
merits of an action brought pursuant to this chapter. An attorney
who fails to submit the attorney's fees for review by the court is
subject to disciplinary action by the State Bar of California.
(b) Subdivision (a) shall not apply to a lawsuit brought by a
labor organization or by a representative of a labor organization or
by a joint labor management committee established pursuant to the
federal Labor Management Corporation Act of 1978 (29 U.S.C. Sec.
175a) or by an established employment or civil rights organization on
behalf of employees or the general public. For purposes of this
section, an employment or civil rights organization shall be in
existence for a minimum of five years in order to qualify for an
exemption and have as one of its purposes the vindication of labor,
civil, constitutional or human rights.
(c) Disgorgement relief is an available remedy under Section
17203. A court shall assure that any disgorgement relief in excess
of any restitution paid by a defendant shall be distributed as a
fluid recovery or cy pres award, to the extent possible, in a manner
designed either to further the purposes of the underlying causes of
action or to promote justice for all Californians.
(d) (1) All persons may be joined in one action as defendants if
there is asserted against them:
(A) Any right to relief jointly, severally, or in the alternative,
in respect of or arising out of the same transaction, occurrence, or
series of transactions or occurrences and if any question of law or
fact common to all these persons will arise in the action; or
(B) A claim, right, or interest adverse to them in the property or
controversy which is the subject of the action.
(2) It is not necessary that each defendant be interested as to
every cause of action or as to all relief prayed for. Judgment may
be given against one or more defendants according to their respective
liabilities.
(3) Where the plaintiff is in doubt as to the person from whom he
or she is entitled to redress, he or she may join two or more
defendants, with the intent that the question as to which, if any, of
the defendants is liable, and to what extent, may be determined
between the parties.
(4) The fact that individual defendants are engaged in the same or
similar businesses and are alleged to have violated the same or
similar laws or regulations shall not, in itself, constitute a basis
for joinder under this chapter.
SEC. 2. The provisions of paragraph (4) of subdivision (d) of
Section 17204.6 of the Business and Professions Code are declaratory
of existing law.
SEC. 3. This act shall become effective only if Assembly Bill 95
of the 2003-04 Regular Session is enacted and becomes effective on or
before January 1, 2004. Code is amended to read:
17204. (a) Actions for any relief pursuant to this chapter shall
be prosecuted exclusively in a court of competent jurisdiction by the
Attorney General or any district attorney or by any county counsel
authorized by agreement with the district attorney in actions
involving violation of a county ordinance, or any city attorney of a
city, or city and county, having a population in excess of 750,000,
and, with the consent of the district attorney, by a city prosecutor
in any city having a full-time city prosecutor or, with the consent
of the district attorney, by a city attorney in any city and county
in the name of the people of the State of California upon their own
complaint or upon the complaint of any board, officer, person,
corporation or association or by any person acting for the interests
of itself, its members, or the general public.
(b) A person acting for the interests of itself, its members, or
the general public shall serve notice of the action for relief and a
copy of the complaint within three days of its filing date, on the
district attorney for the county in which the action is filed. Proof
of service of the notice and complaint shall be filed with the
court. No judgment or temporary or permanent relief shall be granted
until the proof of service is filed with the court.