BILL ANALYSIS                                                                                                                                                                                                    






                           SENATE JUDICIARY COMMITTEE
                         Senator Joseph L. Dunn, Chair
                           2005-2006 Regular Session


          AB 1742                                                A
          Assembly Judiciary Committee                           B
          As Amended June 28, 2005
          Hearing Date:  July 12, 2005                           1
          Various Codes                                          7
          AMT:cjt                                                4
                                                                 2

                                     SUBJECT
                                         
               Courts:  Civil Fees: Procedure:  Court Operations

                                   DESCRIPTION  

          This bill would make a number of changes to statutes that  
          govern civil procedure and court operations.  Specifically,  
          it would modify the terms of the Tort Claims Act ("Act") to  
          provide that certain claims against judicial branch  
          entities must be filed under the restraints of the Act, and  
          that judicial branch entities must be treated similarly to  
          the state under the terms of the Act.  The bill would also:  
          make a number of streamlining changes to small claims court  
          procedure; delete the sunset for a statute that permits  
          imposition of sanctions on frivolous lawsuit filers; extend  
          the scope of family law orders that may be made before a  
          court considers a motion to transfer; requires specified  
          settlement acceptances to be made in writing; permits court  
          personnel to access Department of Motor Vehicles'  
          electronic car insurance information systems; provides that  
          regular warrants include paper warrants and judicial orders  
          entered into automated warrant systems; provides that  
          subpoenas may be served in gated communities in the same  
          manner as other service of process; and makes other  
          technical, non-substantive changes.  The bill would  
          establish that all of these changes are prospective only.

          (This analysis reflects author's amendments to be offered  
          in committee.)

                                    BACKGROUND
                                                                 
          (more)



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          This is the Assembly Judiciary Committee's civil omnibus  
          and court operations bill.  The bulk of its provisions are  
          sponsored by the Judicial Council, but one provision is  
          sponsored by the County of San Mateo and other provisions  
          are sponsored by the Conference of Delegates of California  
          Bar Associations.  Although the bill was recently amended  
          to include the terms of the Uniform Civil Fees and Standard  
          Fee Schedule Act of 2005, the author will amend the bill  
          again in committee to remove those provisions.  The uniform  
          fees provisions have been relocated to the budget trailer  
          bill.

                             CHANGES TO EXISTING LAW
           
           1.Existing law  , the Tort Claims Act, establishes that a  
            claim for money or damages against the state or a local  
            public entity must be presented in accordance with the  
            terms of the Act.  [Gov. Code  905, 905.2.]  

             Existing law  requires the board to provide forms  
            specifying the information that must be contained in a  
            Tort Claims Act claim against the state.  [Gov. Code   
            910.4.]  

             Existing law  specifies that a claim against a local  
            public entity need not be presented in accordance with  
            the Tort Claims Act if the claim is made by the state or  
            another local public entity.  [Gov. Code  905(i).]

             This bill  would state that all claims against a judicial  
            branch entity for money or damages "based upon an express  
            contract or for an injury for which the judicial branch  
            entity is liable" must be presented in accordance with  
            the Tort Claims Act.  It would state that this is  
            declaratory of existing law.  

             This bill  would require the board to provide forms  
            specifying the information that must be contained in a  
            claim against a judicial branch entity. 

             This bill  would specify that a judicial branch entity's  
            claim for money or damages against a local public entity  
            need not be presented in accordance with the Tort Claims  
            Act.
                                                                       




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           2.Existing law  requires Judicial Council to use county  
            counsel, the Attorney General, or other counsel to  
            represent or defend judges, subordinate judicial  
            officers, and court executive officers of the municipal  
            and superior courts that are sued under the Tort Claims  
            Act.  The law provides that a prior defense shall not be  
            the sole basis for judicial disqualification of any of  
            the listed parties.  [Gov. Code  811.9]

             This bill  would extend the disqualification provision by  
            providing that an ongoing defense shall not be the sole  
            basis for disqualification.
             
            This bill  would also make non-substantive changes to  
            include references to justices and the Administrative  
            Office of the Courts, and to delete references to  
            municipal courts.

           3.Existing law  provides that a small claims case must be  
            scheduled for hearing between 15 and 40 days from the  
            date of a court order directing the parties to appear, if  
            all defendants reside in the county where the action is  
            filed.  But a case with at least one defendant residing  
            out of the county must be scheduled between 30 and 70  
            days from the date of the order.  When a public entity  
            files more than 10 claims at one time, and at least one  
            defendant resides out of the county, the date for  
            appearance may not be more than 90 days from the date of  
            the order.  [Code Civ. Proc.  116.330.]

             This bill  would provide that all small claims cases,  
            regardless of the defendant's county of residence, must  
            be scheduled for hearing between 20 to 70 days from the  
            date of the court order directing the parties to appear.

           4.Existing law  requires a defendant to be served with a  
            small claims court claim and the court order directing  
            his or her appearance at least 15 days before a hearing  
            date if the defendant resides in the county, and 20 days  
            prior if the defendant resides outside the county.  [Code  
            Civ. Proc.  116.340.]

             This bill  would require proof of service of that claim to  
            be filed with the court at least five days before the  
                                                                       




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            hearing.

           5.Existing law  permits a small claims court to correct a  
            clerical error in a judgment or set aside and vacate a  
            judgment because of an incorrect or erroneous legal basis  
            for the decision.  [Code Civ. Proc.  116.725.]

             This bill  would establish that a party to the case may  
            only bring one motion to correct such errors, and must do  
            so within 30 days after the clerk mails notice of entry  
            of judgment.  The bill would not limit a small claims  
            court from correcting errors on its own motion at any  
            time. 

           6.Existing law  requires a superior court that hears a small  
            claims court appeal to wait 10 days after completion of  
            the appeal process before transferring the action back to  
            the small claims court for enforcement or other  
            proceedings.  [Code Civ. Proc.  116.780.]

             This bill  would delete that 10-day waiting period.

           7.Existing law  provides that a court may impose sanctions  
            and punitive damages on an attorney, law firm, or party  
            who presents a paper to the court: (1) that is presented  
            primarily for an improper purpose; (2) that contains  
            claims, defenses, or other legal contentions unsupported  
            by either existing law or a non-frivolous extension of  
            existing law; (3) that contains allegations or factual  
            contentions that do not have evidentiary support and are  
            not likely to have evidentiary support after a reasonable  
            opportunity for discovery; or (4) that contains denials  
            of factual contentions that are not supported by evidence  
            or reasonable information and belief.  This statute is  
            set to sunset on January 1, 2006.  [Code Civ. Proc.   
            128.7.]
             This bill  would delete the sunset provision.

           8.Existing law  permits the court in a proceeding for  
            dissolution of marriage or legal separation to make all  
            necessary and proper orders in connection with motions  
            for allowance of temporary spousal support, support of  
            children, counsel fees and costs before deciding a motion  
            to transfer.  [Code Civ. Proc.  396b.]

                                                                       




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             This bill  would apply the above permissions to Uniform  
            Parentage Act proceedings.  The bill would also extend  
            the list of orders that may be decided prior to hearing a  
            motion to transfer, adding motions to determine custody  
            and visitation of children.

           9.Existing law  permits any party to serve a written offer  
            upon any other party to a trial or arbitration to settle  
            a claim.  [Code Civ. Proc.  998.]

             This bill  would require the written offer to include a  
            provision that allows the accepting party to indicate  
            acceptance of the offer by signing a statement that the  
            offer is accepted.  
             
            This bill  would also require that any acceptance of the  
            offer be in writing and signed by counsel for the  
            accepting party, or by the accepting party if not  
            represented by counsel.

           10.Existing law  requires all drivers and owners of motor  
            vehicles to carry "evidence of financial responsibility,"  
            including insurance cards or certificates of  
            self-insurance, in their vehicles at all times.  The law  
            permits law enforcement personnel to obtain evidence of  
            financial responsibility from an electronic reporting  
            system, when available.  [Vehicle Code  16020.]

             Existing law  requires the Department of Motor Vehicles  
            (DMV) to develop a method by which law enforcement  
            officers may electronically verify that an insurance  
            policy or bond for a motor vehicle has been issued.   
            [Vehicle Code  16058.1.]

             This bill  would provide that the DMV electronic reporting  
            systems for the insurance policies would be available to  
            court personnel.

           11.Existing law  requires workers' compensation  
            administrative law judges to subscribe to the Code of  
            Judicial Ethics adopted by the Supreme Court pursuant to  
            subdivision (m) of section 18 of article VI of the  
            California Constitution for the conduct of judges, and  
            not engage in conduct contrary to that code or to the  
            commentary to the Code of Judicial Ethics made by the  
                                                                       




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            California Judges Association.  [Labor Code  123.6.]

             This bill  makes a technical amendment to remove the  
            reference to the California Judges Association.

           12.Existing law  provides that a peace officer who makes an  
            arrest pursuant to an arrest warrant that is regular upon  
            its face may not be held liable for an arrest if he or  
            she acts without malice and in the reasonable belief that  
            the person arrested is the person referred to in the  
            warrant.  [Civ. Code  43.55.]
           
            This bill  would state that a warrant that is regular upon  
            its face may include a paper arrest warrant or a judicial  
            order entered into an automated warrant system by law  
            enforcement or authorized court personnel.

           13.Existing law  allows certain people access to gated  
            communities for the purpose of performing a lawful  
            service of process when the community is staffed by a  
            guard or other security personnel.  [Code Civ. Proc.   
            415.21.]

             This bill  would extend the statute to include lawful  
            service of a subpoena.
                                         
                                    COMMENT
           
           1.Stated need for Tort Claims Act amendments

             Sponsor Judicial Council asserts that proposed amendments  
            to the Tort Claims Act are needed to place the judicial  
            branch tort claims process "on a consistent footing with  
            the state process."  Although AB 2321 (Hertzberg, 2002)  
            enacted a number of statutory provisions to govern  
            Judicial Council's response to claims filed against  
            "judicial branch entities" under the Tort Claims Act,  
            that bill did not explicitly require claims against  
            judicial branch entities to be filed under the Tort  
            Claims Act.  

            This bill would enact a new code provision to require  
            presentation of claims against judicial branch entities  
            under the Tort Claims Act when the claims are "for money  
            or damages based upon an express contract or for an  
                                                                       




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            injury for which the judicial branch entity is liable."   
            This language is based upon existing statutory language  
            applicable to claims filed against the state.  According  
            to the existing statute, a claim filed against the state  
            must be presented in accordance with the Tort Claims Act  
            if: it is a claim "[f]or money or damages based upon an  
            express contract or for an injury for which the state is  
            liable;" it is a settlement provided for by statute or  
            constitutional provision, but for which no appropriation  
            has been made or the appropriation has been exhausted; or  
            it is a claim for which settlement has not been provided  
            by statute or constitutional provision.  [Gov. Code   
            905.2.]  It appears that the "money or damages" language  
            incorporated into this bill is the only language in  
            Section 905.2 which could appropriately be extended to  
            judicial branch entities.
            To further establish conformity, this bill would require  
            forms to be provided that specify what information should  
            be contained in Tort Claims Act claims against both the  
            state and judicial branch entities.  The current law only  
            requires forms to address the information necessary for  
            claims against the state.  

            The bill would establish that a judicial branch entity,  
            like the state or a local public entity, need not present  
            a claim under the Tort Claims Act when it sues a local  
            public entity for money or damages.  The bill would not  
            provide a reciprocal right for a local public entity to  
            sue a judicial branch entity outside the terms of the  
            Act, but the current law similarly does not provide that  
            reciprocal right for a local public entity to sue the  
            state outside the terms of the Act.  Judicial Council  
            states that the objective of this bill is to enact  
            statutes to govern judicial branch entities that parallel  
            existing provisions applicable to the state.

            Other Tort Claims Act provisions of the bill would  
            establish that a defense provided by county counsel, the  
            Attorney General, or other counsel to a justice, judge,  
            subordinate judicial officer, or court executive officer  
            at the behest of Judicial Council or the Administrative  
            Office of the Courts shall not be used as the sole basis  
            for disqualification of any of those parties.  This is an  
            extension of the current statute, which states that prior  
            defenses only -- not ongoing defenses -- are subject to  
                                                                       




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            this provision. 
           
          2.Whether a failure to file a claim against a judicial  
            branch entity should be deemed "excusable neglect" for  
            the first two years this bill is in operation
           
            Under the requirements of the Tort Claims Act, a claim  
            must be filed with a government entity to describe the  
            person's basis for seeking money or damages.  [Gov. Code  
             910.]  Claims must be presented within six months or  
            one year of the accrual of the cause of action, as  
            specified.  [Gov. Code  911.2.]  Upon timely receipt of  
            a claim, the entity must grant or deny the claim.  [Gov.  
            Code  911.6.]  But an entity may return a late-filed  
            claim without action.  [Gov. Code  911.3.]

            Where compliance with the Tort Claims Act is required, no  
            suit may be brought against the public entity for money  
            or damages until the entity has acted on a claim filed  
            with the entity.  [Gov. Code  945.4.]  Since a  
            late-filed claim may be returned from the entity without  
            action, a person could be prevented from bringing suit  
            against a public entity if he or she failed to timely  
            comply with claim filing requirements.  A failure to  
            timely comply with the Act may be excused, however, if it  
            is due to "mistake, inadvertence, surprise, or excusable  
            neglect." [Gov. Code  946.6.]

            This bill would newly codify a requirement that claims  
            against a judicial branch entity be filed in accordance  
            with the Tort Claims Act.  Because this new requirement  
            could ultimately bar a suit for a person who fails to  
            file a timely claim, it may be appropriate to specify  
            that it is "excusable neglect" under Section 946.6 for a  
            person to fail to meet claim filing deadlines for  
            judicial branch entities during the first two years that  
            the bill is in operation.  This two-year window would  
            account for the fact that some claims are not untimely  
            until a full year has passed.  It would also give a  
            person an opportunity to discover the necessity of filing  
            a Tort Claims Act claim in, for example, personal injury  
            cases where the statute of limitations for filing suit is  
            two years.  [See Code Civ. Proc.  335.1.]

            SHOULD A FAILURE TO TIMELY FILE A TORT CLAIMS ACT CLAIM  
                                                                       




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            WITH A JUDICAL BRANCH ENTITY CONSTITUTE "EXCUSABLE  
            NEGLECT" DURING THE FIRST TWO YEARS THIS BILL IS IN  
            EFFECT? 
           
          3.Stated need for amendments to small claims procedures
           
            The bill would make a number of changes to clarify and  
            streamline small claims procedures.  (1) It would replace  
            varied timelines for the setting of small claims hearings  
            -- which currently vary based on the county of residence  
            of a defendant or defendants -- with a single timeline of  
            20 to 70 days.  Judicial Council states this change will  
            give plaintiffs a wider choice of hearing dates, will  
            allow plaintiffs more time to serve defendants with  
            orders to appear, will reduce requests for continuances,  
            and will save the courts processing time and costs.  (2)  
            The bill would require filing of a proof of service to  
            demonstrate that an order to appear was served on a  
            defendant at least five days before a hearing.  Judicial  
            Council asserts this will help courts manage their small  
            claims trial calendars.  (3) The bill would limit parties  
            to one motion to correct or vacate a judgment, and  
            require such motions to be filed within 30 days of the  
            mailing of the judgment.  Judicial Council states this  
            change will help conserve judicial resources by  
            preventing the filing of multiple, non-meritorious  
            motions to correct or vacate a judgment.  (4) The bill  
            would eliminate the current, 10-day waiting period before  
            a small claims appeal and judgment may be transferred  
            back to the small claims court for enforcement  
            proceedings.  Judicial Council states the 10-day delay is  
            no longer necessary, now that the trial court system has  
            been unified statewide.  

          4.Other provisions in the bill
           
            The bill would eliminate the January 1, 2006 sunset date  
            for the frivolous lawsuits sanctions currently possible  
            under Section 128.7 of the Code of Civil Procedure.   
            Judicial Council states that this code section is the  
            sole remaining statute for authorizing sanctions against  
            the filing of frivolous lawsuits, and will help to deter  
            the filing of frivolous lawsuits.
            This bill would require proceedings under the Uniform  
            Parentage Act to be treated the same as dissolution of  
                                                                       




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            marriage or legal separation proceedings to the extent  
            that the court is permitted to issue all necessary and  
            proper orders in connection with temporary spousal  
            support, support of children, and counsel fees and costs  
            before deciding a motion to transfer.  The bill would  
            also permit a court to decide necessary and proper  
            motions regarding custody and visitation of children  
            before deciding a motion to transfer.

            The bill would expand on the current statutory  
            requirement that an offer to settle a case under Section  
            998 of the Code of Civil Procedure be in writing,  
            requiring in addition that the written offer include a  
            provision that would allow the accepting party to  
            indicate acceptance by signing the offer.  The bill would  
            further require that any acceptance of a written offer be  
            in writing and signed.

            The bill would provide that electronic systems used by  
            the Department of Motor Vehicles for reporting and  
            verifying the insurance of drivers and vehicle owners may  
            be accessed by "court personnel," in addition to the law  
            enforcement officers who are currently permitted to  
            access the information.

            The bill would make a technical amendment to the statute  
            governing the Judicial Ethics Code for workers'  
            compensation administrative law judges by deleting a  
            reference to the California Judges Association (CJA).   
            Judicial Council states that CJA is no longer responsible  
            for adopting the judicial conduct code because the  
            Supreme Court formally adopted the code in 1996.

            In a provision sponsored by the County of San Mateo, the  
            bill would clarify that a "warrant of arrest regular upon  
            its face," as referenced in a Civil Code section that  
            protects peace officers from liability for execution of  
            arrest warrants in specified circumstances, includes both  
            paper warrants and judicial orders entered into automated  
            warrant systems.

            In provisions sponsored by the Conference of Delegates of  
            the California Bar Associations, the bill would extend an  
            existing statute permitting service of process in a gated  
            community to permit service of subpoenas as well, and  
                                                                           




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            would make technical, non-substantive changes to the  
            civil procedure code section governing service of  
            punitive damages statements.









































                                                                       




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           5.Author's amendments
           
            The author may accept the following technical amendments  
            in committee, and will also amend to delete all  
            provisions pertaining to the Uniform Civil Fees Act:

             a)   On page 29, strike out lines 1 to 2, inclusive, and  
               on line 3, strike out "(c)" and insert:  
              
                (b)

             b)   On page 29, between lines 7 and 8, insert:

               (c) Proof of service of the claim and order shall be  
               filed with the small claims court at least five days  
               before the hearing.

             c)   On page 53, line 18, strike out the comma.

             d)   On page 53, line 19, strike out "after the  
               statement of the offer" and insert:

               a statement of the offer,

             e)   On page 53, line 20, after the comma insert:

              and

          Support:  California Judges Association (CJA); Minorities  
                 in Law Enforcement (MILE)

          Opposition:  None Known

                                     HISTORY
           
          Source:  Conference of Delegates of California Bar  
                Association; County of San Mateo; Judicial Council

          Related Pending Legislation:  None Known

           Prior Legislation:  AB 2321 (Hertzberg), Ch. 1007, Stats.  
                        of 2002, set forth various processes for  
                        Judicial Council to follow in responding to  
                        claims filed against judicial branch entities  
                        under the Tort Claims Act, and defined the  
                                                                       




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                        term "judicial branch entity."



          Prior Vote:  Assembly Floor: 71 - 0
                   Assembly Appropriations Committee: 18 - 0
                   Assembly Judiciary Committee: 9 - 0
          
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