BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1322|
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                                 THIRD READING


          Bill No:  AB 1322
          Author:   Evans (D)
          Amended:  6/29/05 in Senate
          Vote:     27 - Urgency

           
           SENATE JUDICIARY COMMITTEE  :  7-0, 7/12/05
          AYES:  Dunn, Morrow, Ackerman, Cedillo, Escutia, Figueroa,  
            Kuehl
           
          ASSEMBLY FLOOR  :  74-0, 4/21/05 - See last page for vote


           SUBJECT  :    Judges:  disqualification standards

           SOURCE  :     California Judges Association
                      Judicial Council of California


           DIGEST  :    This bill supplements the disqualification rules  
          for any judge who has a current arrangement for prospective  
          employment or other compensated service as a dispute  
          resolution neutral, or who is having or has had within the  
          previous two years a discussion regarding that prospective  
          employment or service, to include disqualification where  
          (1) the judge directs the parties to participate in an  
          alternative dispute resolution process in which the dispute  
          resolution neutral will be an individual or entity with  
          whom the judge has the arrangement, has previously been  
          employed or served, or is discussing or has discussed the  
          employment or service, or (2) the judge will select a  
          dispute resolution neutral or entity to conduct an  
          alternative dispute resolution process in the matter before  
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          the judge, and among those available for selection is an  
          individual or entity with whom the judge has the  
          arrangement or with whom the judge is discussing or has  
          discussed the employment or service.  This bill defines the  
          phrases "participating in discussions" and "has  
          participated in discussions."

           ANALYSIS  :    Existing law sets forth a number of grounds  
          for the required disqualification of a judge.  [Section  
          170.1 of the Code of Civil Procedure (CCP)]  Under existing  
          law, one of those grounds for required disqualification is  
          where the judge has a current arrangement concerning or  
          other compensated service as a dispute resolution neutral  
          or is participating in, or, within the last two years has  
          participated in, discussions regarding such prospective  
          employment or service, and either of the following applies:  
           (1) the arrangement is, or the discussion was, with a  
          party to the proceeding, or (2) the matter before the judge  
          includes issues relating to the enforcement of an agreement  
          to submit a dispute to alternative dispute resolution or  
          the appointment or use of a dispute resolution neutral.   
          [Section 170.1(a)(8) of the CCP]

          This bill adds "prior employment or service as a dispute  
          resolution neutral" to Section (a)(8) as a ground for  
          disqualification, as specified.  

          This bill requires (in addition to (1) and (2) above)  
          disqualification where (1) the judge directs the parties to  
          participate in an alternative dispute resolution process in  
          which the dispute resolution neutral will be an individual  
          or entity with whom the judge has the arrangement  
          [concerning prospective employment or other compensated  
          service as a dispute resolution neutral], has previously  
          been employed or served, or is discussing or has discussed  
          the employment or service, or (2) the judge will select a  
          dispute resolution neutral or entity to conduct an  
          alternative dispute resolution process in the matter before  
          the judge, and among those available for selection is an  
          individual or entity with whom the judge has the  
          arrangement or with whom the judge is discussing or has  
          discussed the employment or service.

          This bill defines "participating in discussions" or "has  







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          participated in discussions" to mean that the judge  
          solicited or otherwise indicated an interest in accepting  
          or negotiating possible employment or service as an  
          alternative dispute resolution neutral or responded to an  
          unsolicited statement regarding, or an offer of, such  
          employment or service by expressing an interest in that  
          employment or service, making any inquiry regarding the  
          employment or service, or encouraging the person making the  
          statement or offer to provide additional information about  
          the employment or service.  This bill further provides  
          that, if a judge's response to an unsolicited statement  
          regarding a question about, or an offer of, prospective  
          employment or other compensated service as a dispute  
          resolution neutral is limited to responding negatively,  
          declining the offer, or declining to discuss such  
          employment or service, that response does not constitute  
          "participating in discussions."  

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  7/13/05)

          California Judges Association (co-source)
          Judicial Council of California (co-source)
          American Federation of State, County, and Municipal  
          Employees
          California Dispute Resolution Council
          Consumer Attorneys of California


           ARGUMENTS IN SUPPORT  :    The author states:

            "The purpose of AB 1322 is to prevent the wholesale  
            disqualification of civil judges which might result  
            from an overly broad interpretation of the standards  
            contained in Code of Civil Procedure Section 170.1.   
            Specifically, in  Hartford Casualty v. Superior Court   
            [review granted March 23, 2005], the Second District  
            Court of Appeal held that the language of Section  
            170.1, as it relates to alternative dispute resolution,  
            is unambiguous and must be applied as stated.  Read  
            literally, the language of subdivision (a)(8), could be  
            interpreted to require disqualification if a judge has  







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            had any discussions concerning prospective employment  
            as a dispute resolution neutral, even if the  
            discussions were entirely superficial or even negative,  
            if the matter before the judge involves any appointment  
            or use of a dispute resolution neutral, no matter how  
            far removed from the judge."

          The Judicial Council of California also asserts that the  
           Hartford  decision holding that application of Section  
          170.1(a)(8) is triggered even when a judge refers the  
          parties to mediation, but has no involvement in the  
          identification or selection of the mediator, is  
          problematic.  This is because, under Judicial Council case  
          management rules, judges are required to consider what ADR  
          (alternative dispute resolution) process might be  
          appropriate for a case, and the  Hartford holding could be  
          read to trigger Section 170.1 in virtually every civil  
          case, thus threatening the wholesale disqualification of  
          judges in civil cases.

          The author states:

            "The bill would clarify these [disqualification] tests  
            to better express the Legislature's intention that  
            disqualification is indicated only when the judge has  
            meaningfully participated in these discussions or  
            entertained the proposal, and only if the matter before  
            the judge, among other things, concerns the  
            enforceability of an ADR [alternative dispute  
            resolution] agreement, review of a decision arising  
            from an ADR process using the dispute resolution  
            neutral or ADR provider with whom the judge has the  
            defined conflict of interest or the judge will select  
            or use a dispute resolution neutral and the neutral or  
            provider with whom the judge has the conflict is among  
            [those with] whom the judge has participated in  
            [prospective employment] discussions."


           ASSEMBLY FLOOR  : 
          AYES:  Aghazarian, Arambula, Baca, Benoit, Berg, Bermudez,  
            Blakeslee, Bogh, Calderon, Canciamilla, Chan, Chavez,  
            Chu, Cogdill, Cohn, Coto, Daucher, De La Torre, DeVore,  
            Dymally, Emmerson, Evans, Frommer, Garcia, Goldberg,  







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            Hancock, Harman, Haynes, Jerome Horton, Shirley Horton,  
            Houston, Huff, Jones, Karnette, Keene, Klehs, Koretz, La  
            Malfa, La Suer, Laird, Leno, Leslie, Levine, Lieber, Liu,  
            Matthews, Maze, McCarthy, Mountjoy, Mullin, Nakanishi,  
            Nava, Negrete McLeod, Niello, Parra, Plescia, Richman,  
            Ridley-Thomas, Sharon Runner, Ruskin, Saldana, Salinas,  
            Spitzer, Strickland, Torrico, Tran, Umberg, Vargas,  
            Villines, Walters, Wolk, Wyland, Yee, Nunez
          NO VOTE RECORDED:  Bass, Gordon, Montanez, Nation, Oropeza,  
            Pavley


          RJG:mel  7/14/05   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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