BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 578
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          Date of Hearing:  May 5, 2009

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                  AB 578 (Huber) - As Introduced:  February 25, 2009

                                  PROPOSED CONSENT
           
          SUBJECT  :  CIVIL PROCEDURE: DISCOVERY OBJECTIONS: PRIVILEGE LOG

           KEY ISSUE  :  SHOULD THE CODE OF CIVIL PROCEDURE BE AMENDED TO  
          CODIFY CURRENT CASE LAW, WHICH PROVIDES THAT, IF A PARTY OBJECTS  
          TO A DISCOVERY DEMAND ON THE GROUNDS THAT THE MATERIAL IS  
          PRIVILEGED, THEN THE DEMANDING PARTY MAY ASK (AND THE COURT MAY  
          REQUIRE) THE OBJECTING PARTY TO PRODUCE A "PRIVILEGE LOG," IN  
          ORDER TO CLARIFY THE CLAIM OF PRIVILEGE? 

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.

                                      SYNOPSIS
          
          Existing law permits a party to a civil action to obtain  
          discovery, as specified, by inspecting documents, tangible  
          items, and land or other property in the possession of any other  
          party to the action.  The Discovery Act provides for procedures  
          that must be followed when the responding party objects to part  
          or all of an inspection demand.  This bill would authorize the  
          party making the discovery demand to move for an order to  
          require the responding party to produce a privilege log if the  
          responding party is objecting on the basis of privilege or work  
          product.  If the court, in its discretion, determines that a  
          privilege log is necessary in order to determine the validity of  
          the claim, the court shall order the party claiming the  
          privilege to prepare and serve a privilege log, according to the  
          terms and conditions deemed appropriate by the court.  The bill  
          would also specify that the parties may voluntarily comply with  
          these provisions, or may stipulate that all parties will comply  
          with these provisions.  The bill would require that the  
          compliance be presumed to satisfy the existing provisions  
          related to objecting to a demand for inspection.  The bill also  
          clarifies what is meant by the term "privilege log," and  
          provides the courts with guidance as to the categories such a  
          log should contain, subject to the court's modification of those  
          categories.








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          The author has acknowledged that this measure is a "work in  
          progress."  She states that she has been working closely with  
          representatives of the Judicial Council, the Judges Association,  
          the State Bar, the California Defense Council, and the Consumer  
          Attorneys of California to try to craft consensus legislation in  
          this area, and she has committed to all of these organizations  
          that she will not move the bill in the Senate unless all of  
          these discovery experts are satisfied that the needed amendments  
          have been incorporated into the bill in order to make the  
          legislation useful and acceptable.  The author also acknowledged  
          to the Committee that in the event the legislation is amended in  
          any way, she will bring the bill back to the Assembly Judiciary  
          Committee for consideration of the new measure.
           
          SUMMARY  :  Amends the Code of Civil Procedure to expressly allow  
          a party making a discovery demand to ask that the other party  
          produce a privilege log, if the other party objects to the  
          discovery demand on the basis of privilege or work product.   
          Specifically,  this bill  :  

          1)Provides that, in a civil action, when a party (the  
            "responding party") objects to a discovery demand for  
            inspection of an item or category of item, on the basis of  
            privilege or work product, the party making the demand may  
            move for an order requiring the responding party to produce a  
            "privilege log."

          2)Provides that if the court, in its discretion, determines that  
            a privilege log is necessary in order to determine whether the  
            responding party's claim of privilege or work product is  
            valid, the court shall order the responding party (the party  
            claiming the privilege) to prepare and serve a privilege log  
            upon the terms and conditions deemed appropriate by the court.

          3)Provides that, unless otherwise ordered by the court, the  
            privilege log shall include, as to each item for which a claim  
            of privilege or other protection from discovery has been made,  
            all of the following:

             a)   The author or authors;
             b)   The recipient or recipients;
             c)   The date or dates;
             d)   The length;
             e)   The nature of the document or its intended purpose; and








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             f)   The basis for the objection.

          4)Provides that the parties may voluntarily comply with the  
            privilege log requirements or may stipulate that all parties  
            will comply and that compliance shall be presumed to satisfy  
            the standards set out in the statute.

           EXISTING LAW  : 

          1)Permits a party to a civil action to obtain discovery, as  
            specified, by inspecting documents, tangible things, and land  
            or other property in the possession of any other party to the  
            action.  (Code of Civil Procedure section 2031.010(a).)

          2)Provides the procedure that a demanding party must follow in  
            making a demand, including the contents of the demand as well  
            as the manner of serving notice on the responding party.   
            (Code of Civil Procedure sections 2031.030-2031.040.)

          3)Provides that, when an inspection of tangible things,  
            documents, or places has been made, the responding party (or  
            any other party affected) may move for a protective order; if  
            good cause is shown the court may make an order to protect any  
            party from unwarranted annoyance, embarrassment, oppression,  
            or undue burden and expense.  (Code of Civil Procedure section  
            2031.060.)

          4)Provides that the responding party shall respond separately to  
            each item or category demanded by one of the following:

             a)   By a statement that the party will comply with the  
               demand;
             b)   By stating that the party is unable to comply; and 
             c)   By an objection to the demand.  (Code of Civil Procedure  
               section 2031.210.)

          5)Provides that, if the responding party objects to the  
            inspection demand, the response shall do both of the  
            following:

             a)   Identify with particularity any document, tangible  
               thing, or land falling within any category of item in the  
               demand to which the party is objecting; and
             b)   Set forth clearly the extent of, and specific ground  
               for, the objection.  (Code of Civil Procedure section  








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               2031.240(b).)

          6)Provides that, if the objection is based on a claim of  
            privilege, the particular privilege invoked must be stated.   
            (Code of Civil Procedure section 2031.240(b)(2).)

          7)Provides that, if the objection is based on a claim that the  
            information sought is protected work product (as defined in  
            Code of Civil Procedure sections 2018.010 et seq.), that claim  
            must be expressly asserted.

          8)Provides that, if the responding party fails to serve a timely  
            response to the demand, the following apply:

             a)   The responding party waives any objection to the demand,  
               including one based on privilege or on the protection of  
               work product (in this case, the court might relieve the  
               party from waiver if the party's failure to respond was the  
               result of inadvertence or mistake, or if the party has  
               subsequently substantially complied with the demand);
             b)   The party making the demand may move for an order  
               compelling response;
             c)   The court may order sanctions for failure to respond  
               under specified circumstances.  (Code of Civil Procedure  
               section 2031.300.)

          9)Provides that the demanding party, on receipt of a response to  
            his or her demand, may move for an order compelling further  
            response to the demand if the demanding party deems that any  
            of the following apply:

             a)   A statement of compliance with the demand is incomplete;
             b)   A representation of inability to comply is inadequate,  
               incomplete, or evasive; or
             c)   An objection in the response is without merit or too  
               general.  (Code of Civil Procedure section 2031.310(a).)

          10)Provides that, if the responding party objects to a demand on  
            the basis of a privilege or work-product claim, the court may  
            require the objecting party to produce a privilege log, with  
            information that is "sufficiently specific to allow a  
            determination of whether each withheld document is or is not  
            in fact privileged."  (Wellpoint Health Networks, Inc. v.  
            Superior Court, 59 Cal.App.4th 110, 129-130 (1997).)









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          11)Provides that if the responding party objects to a demand on  
            the basis of a privilege or work-product claim, the responding  
            party is not automatically required to produce a privilege  
            log; the responding party does not waive his or her privilege  
            by not producing a privilege log in response to a demand for a  
            privilege log; and the responding party only waives privilege  
            by not responding to the demand in a timely manner.  (Best  
            Product Inc. v. Superior Court, 119 Cal.App.4th 1181,  
            1188-1190 (2004).)

           COMMENTS  :  According to the author, this bill seeks to codify  
          "current case law for requesting a court order requiring the  
          production of a privilege log."  The author states that the bill  
          codifies the court's holding in Best Product Inc. v. Superior  
          Court, 119 Cal.App.4th 1181, 1188-1190 (2004).

           Best Product Inc. v. Superior Court, 119 Cal.App.4th 1181  
          (2004)  .  In Best Product, the court held that a privilege log  
          was not automatically required where a responding party claimed  
          that items demanded in discovery were privileged.  Id. at 1189.   
          The court held that a court could order a privilege log if the  
          demanding party moved to compel "further responses" to the  
          party's demand, so that the court could determine whether the  
          items were in fact privileged.  Id. 

           A Court Already Has The Ability To Order A Party To Produce A  
          Privilege Log Under A More General Statute  .  Given the holding  
          in Best Product, it is clear that a court has the ability to  
          order a responding party who claims privilege to produce a  
          privilege log, under the more general statute, Code of Civil  
          Procedure section 2031.310(a).  This statute allows the  
          demanding party to request "further response," if, for example,  
          the responding party makes a general claim of privilege.  

           Work in Progress  :  The author has acknowledged that this measure  
          is a "work in progress."  She states that she has been working  
          closely with representatives of the Judicial Council, the Judges  
          Association, the State Bar, the California Defense Council, and  
          the Consumer Attorneys of California to try to craft consensus  
          legislation in this area, and she has committed to all of these  
          organizations that she will not move the bill in the Senate  
          unless all of these discovery experts are satisfied that the  
          needed amendments have been incorporated into the bill in order  
          to make the legislation useful and acceptable.  The author also  
          acknowledged to the Committee that in the event the legislation  








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          is amended in any way, she will bring the bill back to the  
          Assembly Judiciary Committee for consideration of the new  
          measure.
            
           ARGUMENTS IN SUPPORT  :  In support the American Federation of  
          State, County, and Municipal Employees (AFSCME) state, "AB 578  
          ensures that items protected from discovery are properly  
          outlined as to why they should be protected from the party  
          filing for discovery.  This bill requires the party objecting to  
          discovery to file a protection log with the court which outlines  
          the reasons for objection."  AFSCME states that it "supports the  
          Legislature's efforts to improve California's legal process."

          Supporters Consumer Attorneys of California (CAOC) state, "AB  
          578 would provide guidance to litigants and to courts in  
          identifying documents that are subject to a claim of privilege  
          in litigation."  CAOC states, "The purpose of discovery is to  
          encourage the open exchange of information in order to resolve  
          disputes?. AB 578 simply puts in place guidelines for litigants  
          and the courts in using privilege logs to identify information  
          subject to the privilege claim."  CAOC further states, "AB 578  
          removes any uncertainty concerning the ability of a party to  
          request a privilege log and also provides clear guidance about  
          the information that should be included in a privilege log."   
          CAOC states that the bill will "reduce unnecessary games  
          playing" by parties responding to discovery demands.

           PRIOR LEGISLATION  :  AB 5 (Evans) 2009:  Civil Discovery:  
          Electronic Discovery Act.  This bill updates the Civil Discovery  
          Act to better provide for obtaining the growing volume of  
          electronically stored information.  Approved by the Assembly.

          AB 926 (Evans) 2007-2008:  Civil Discovery:  Established  
          procedures in the Civil Discovery Act for a person to obtain  
          discovery of electronically stored information, in addition to  
          tangible things, and land or other property, in the possession  
          of any other party to the action.  Vetoed by the Governor.

          AB 1248 (Evans) 2007-2008, Chapter 738, Statutes of 2007:  
          Courts:  This bill allowed the demanding and responding parties  
          to agree to extend the date for a demanded inspection set  
          pursuant to the provisions of law relating to the time for  
          inspection; required the documents subject to an inspection  
          demand to be produced on the date specified in the inspection  
          demand pursuant to the provisions of law relating to the time  








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          for inspection, unless an objection had been made to that date;  
          and provided that, if the date for inspection has been extended  
          pursuant to the above provisions of law relating to extensions,  
          the documents shall be produced on the date agreed to pursuant  
          to those provisions.

          AB 3081 (Committee on Judiciary) 2005-2006, Chapter 182 of 2004:  
          Civil Discovery: Reorganized the civil discovery statutes by  
          dividing them into short sections grouped in chapters according  
          to subject matter, and made conforming changes in  
          cross-references to other code sections.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 

           Conference of Delegates, California State Bar Association  
          (sponsor)
          American Federation of State, County, and Municipal Employees
          Consumer Attorneys of California

           Opposition 

           None on file  

          Analysis Prepared by :   Drew Liebert and Rachel Anderson / JUD.  
          / (916) 319-2334