BILL ANALYSIS                                                                                                                                                                                                    






                             SENATE JUDICIARY COMMITTEE
                           Senator Ellen M. Corbett, Chair
                              2009-2010 Regular Session


          SB 984 (Hollingsworth)
          As Amended June 17, 2010
          Hearing Date: June 29, 2010
          Fiscal: No
          Urgency: Yes
          TW:jd
                    

                                        SUBJECT
                                           
                              Service of Process:  Time

                                      DESCRIPTION  

          This bill would require the first attempt to serve a summons and  
          complaint initiating an action to be made between the hours of  
          7:00 a.m. and 8:00 p.m.  This bill would be enacted as an  
          urgency statute in order to ensure that service of process is  
          performed in a manner that does not interfere with a homeowner's  
          expectation of privacy and freedom from harassment.

                                      BACKGROUND  

          A complaint is the initiating document of an action filed by a  
          plaintiff.  After filing the complaint with the court, the  
          plaintiff must give notice of the action to the defendant by  
          serving the complaint and a summons, which advises the defendant  
          of the existence of the action and requirements of the defendant  
          thereafter.  In California, the plaintiff has three years from  
          the date of filing the complaint within which to serve the  
          summons and complaint on the defendant.  The plaintiff can serve  
          the summons and complaint by personal or mail service or by  
          publication, as specified.

          This bill would specify that the first attempt of service of a  
          summons and complaint initiating an action shall be made between  
          the hours of 7:00 a.m. and 8:00 p.m.

                                CHANGES TO EXISTING LAW
           
           Existing law  prescribes that a court has jurisdiction over a  
                                                                (more)



          SB 984 (Hollingsworth)
          Page 2 of ?



          defendant as soon as service of the complaint is effectuated.   
          (Code Civ. Proc. Sec. 410.50.)

           Existing law  provides that a plaintiff has three years within  
          which to serve the summons and complaint on the defendant.   
          (Code Civ. Proc. Sec. 583.210.)
           
          Existing law  prescribes the methods by which service of a  
          summons and complaint must be effectuated.  (Code Civ. Proc.  
          Sec. 415.10 et seq.)

           Existing law  authorizes a summons and complaint to be personally  
          served by delivering a copy of the summons and complaint to the  
          person to be served; service of the summons is completed at the  
          time of delivery.  (Code Civ. Proc. Sec. 415.10.) 
           
          Existing law  authorizes service of a summons and complaint on a  
          business by leaving a copy of the summons and complaint with a  
          person in charge of the business during usual office hours.   
          (Code Civ. Proc. Sec. 415.95(a).)
           
          Existing law  authorizes service on a party of a notice of motion  
          by leaving the notice at the party's residence between the hours  
          of 8:00 a.m. and 6:00 p.m. with some person at least 18 years of  
          age.  (Code Civ. Proc. Sec. 1011(b).) 

           Existing law  authorizes service on a business of a notice of  
          motion by leaving the notice with a receptionist or with a  
          person having charge thereof; if a receptionist or person in  
          charge is located, service may be made by leaving the notice at  
          the business between the hours of 9:00 a.m. and 5:00 p.m.  (Code  
          Civ. Proc. Sec. 1011(a).)

           Existing law  authorizes an individual over the age of 18 who is  
          not a party to the action to perform a service of a summons and  
          complaint.  (Code Civ. Proc. Sec. 414.10.)
          
          Existing law  regulates service of process performed by  
          registered process servers.  (Bus. & Prof. Code Sec. 22350 et  
          seq.)

           Existing law  provides the following list of individuals  
          performing service of process who are exempt from regulation as  
          registered process servers:  

             1)   any person making less than 10 services of process per  
                                                                      



          SB 984 (Hollingsworth)
          Page 3 of ?



               year; 
             2)   any sheriff, marshal, or government employee who is  
               acting within the course and scope of his or her  
               employment;
             3)   an attorney or his or her employee, when serving process  
               related to cases for which the attorney is providing legal  
               services;
             4)   any person who is specially appointed by a court to  
               serve its process; and
             5)   a registered professional photocopier performing service  
               of process of subpoenas for the production of records.

           This bill  would specify that the first attempt to serve a  
          summons and complaint initiating an action must be made between  
          the hours of 7:00 a.m. and 8:00 p.m.
          

                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            SB 984 has been introduced in order to ensure that service of  
            process is performed in a manner that does not interfere with  
            a homeowner's reasonable expectations of privacy and freedom  
            from harassment.
          
          2.  Expectations of privacy and freedom from harassment: no  
            evidence of a problem  

          This bill would require service of a summons and complaint  
          initiating an action to be made between the hours of 7:00 a.m.  
          and 8:00 p.m.  The author argues that serving a summons and  
          complaint outside of these timeframes violates a party's privacy  
          and is harassing conduct.  Opponents of this bill argue that  
          there is no evidence that existing law does not adequately  
          provide residents with privacy and protection from harassment.   
          The author has not provided the Committee with information that  
          existing law is being abused by individuals effectuating service  
          of process.    

              a.   Privacy 
             
            This bill seeks to protect privacy through the additional  
            regulation of service of a summons and complaint.  However,  
                                                                      



          SB 984 (Hollingsworth)
          Page 4 of ?



            California law recognizes the importance of serving legal  
            papers and contains specified instances in which a process  
            server would not be in violation of a homeowner's privacy.   
            Penal Code Section 602.8(c)(2) permits any person on the  
            homeowner's premises who is engaging in activities protected  
            by the California or United States Constitution.  Penal Code  
            Section 602.8(c)(3) exempts process servers from violation of  
            personal trespass.  Penal Code Section 602(n) provides that a  
            process server is exempt from violation of vehicular trespass  
            by driving a vehicle upon the homeowner's property.  These  
            codes do not specify which timeframes a process server is  
            exempt from trespass and which timeframes a homeowner can  
            assert an expectation of privacy.  Rather, these exemptions  
            from trespass apply 24 hours a day.

              b.   Harassment 
           
            This bill seeks to guard against harassment.  Penal Code  
            Section 646.9(e) defines "harassment" as "a knowing and  
            willful course of conduct directed at a specific person which  
            seriously alarms, annoys, torments, or terrorizes the person,  
            and which serves no legitimate purpose."  Arguably, completing  
            service of process of a summons and complaint serves a  
            legitimate legal purpose and would fall outside of the  
            definition of harassing conduct.  

            In the event service of process is performed in a harassing  
            manner, the registered process server is subject to penalties  
            prescribed by existing law.  Business and Professions Code  
            Section 22356 provides that a registered process server is  
            responsible at all times for the good conduct of his or her  
            employees acting within the course or scope of their  
            employment.  A registered process server is subject to losing  
            his or her $2,000 bond and registration revocation for failing  
            to comply with the laws governing service of process.  (Bus. &  
            Prof. Code Secs. 22357, 22358.)  It is not clear that existing  
            law fails to protect individuals from harassing conduct  
            resulting from improper service of process.  

             c.    Necessity for urgency is not known
           
            This bill would require its provisions to take effect  
            immediately in order to protect a homeowner's expectations of  
            privacy and freedom from harassment.  Committee  staff is not  
            aware of information showing that homeowners are at risk of  
            impending danger of encroachments on privacy and subject to  
                                                                      



          SB 984 (Hollingsworth)
          Page 5 of ?



            harassment by process servers.  Further, as discussed above,  
            the Legislature has previously determined that service of  
            legal process does not fall within the purview of criminal  
            conduct that would violate an individual's rights of privacy  
            and freedom of harassment. 

          3.  Continuing opposition to the bill after most recent  
            amendments  

          Prior to the most recent amendments, this bill was aimed at  
          regulating registered process servers.  The bill would have  
          penalized registered process servers for failing to comply with  
          the provisions of this bill by providing that the offending  
          process server's license could be revoked, and a fine of $10,000  
          would be assessed against the process server for serving  
          documents at the wrong address.  If service was made at the  
          wrong address, the person who caused such service (i.e., the  
          paralegal, attorney, secretary, investigator, or even the  
          plaintiff who provided the wrong address) because of an error  
          would be responsible for paying the $10,000 fine.  This bill  
          also would have required the process server, at the time of  
          serving the party, to state his or her full name and purpose for  
          being at the residence, and the process server would have had to  
          identify the person being served.  If service was made in  
          violation of these provisions, the process server would be fined  
          $25,000, payable to the party being served.  There was  
          opposition to these provisions, and the author subsequently  
          amended the bill to its current form in an effort to address the  
          opponents' concerns.  

          The Committee has not, however, received any letters indicating  
          that the amendments have removed opposition.  The California  
          Association of Licensed Investigators, Inc. (CALI) and the  
          California Association of Legal Support Professionals (CALSPro)  
          have each submitted post-amendment opposition letters.  
          CALSPro argues that this bill is unnecessary and unenforceable.   
          CALSPro continues to be opposed to this bill and states:

            Process servers naturally try to serve process at reasonable  
            hours when the recipient is likely to be home, in the  
            interests of due process, safety, and economy. . . . The bill  
            is also unenforceable because it will affect only the  
            Registered Process Server members of our client association.   
            The problem is that a very large percentage of process serving  
            is performed by persons not required to be registered pursuant  
            to the Business and Professions Code.  Persons who perform  
                                                                      



          SB 984 (Hollingsworth)
          Page 6 of ?



            fewer than 10 services of process per year, people who serve  
            without specific compensation for service of process,  
            employees of lawyers, and others are exempt from registration.  
             In fact, the law permits anyone over 18 not a party to the  
            action to serve process, and yet the bill will be completely  
            unenforceable against anyone except Registered Process  
            Servers.

            In contrast with the hundreds or perhaps thousands of  
            unregistered servers who could violate the provisions of SB  
            984 with impunity, Registered Process Servers would be subject  
            to suspension or revocation of their registration (Business  
            and Professions Code Section 22358), forfeiture of the $2000  
            penal amount of their license bonds (Section 22357), and even  
            potential misdemeanor prosecution (Section 22359).

            We are also concerned about issues of proof:  it is unclear  
            how the server will document and prove what time the first  
            attempt was made, and the bill additionally contains no  
            provision to alert servers when a document is subject to the  
            time limitation in the bill.

          CALSPro provided proposed amendments to the bill that would have  
          required the county clerk to investigate improper services of  
          process performed by all servers, not just registered process  
          servers.  These amendments proposed by CALSPro would establish a  
          method for handling complaints for violations of the service  
          outside of the timeframe proposed by this bill.  Further, a  
          method of evaluating the facts of the alleged improper service  
          would be necessary to give both the served party and the process  
          server an opportunity to substantiate their claims.  

          CALSPro also suggested that the Judicial Council modify the  
          current summons form to provide a place on the form to indicate  
          whether the summons pertained to initiating papers of the  
          action.  This provision would instruct process servers that the  
          initial service attempt could only be made between 7:00 a.m. and  
          8:00 p.m. and the process servers could then comply with the  
          restriction.  Without this provision, process servers would not  
          know whether other defendants had been served with the summons  
          and complaint (see Comment 6) or whether the summons and  
          complaint were the initiating documents of the action.  In any  
          given case, multiple summons and complaints may be issued and  
          filed and it may be uncertain whether the papers being served  
          are those initiating the action or papers being served after the  
          action was initiated.  The author declined to accept these  
                                                                      



          SB 984 (Hollingsworth)
          Page 7 of ?



          amendments. 

          Consumer Attorneys of California opposes the bill, arguing that  
          "Business and Professions Code [Section] 22358 ? sets forth the  
          procedure to suspend or revoke the license of a process server  
          who makes improper service or if a person makes a complaint that  
          he or she has been injured by the service of process.  We find  
          this to be sufficient for any alleged improper actions made by a  
          process server as it requires an investigation by the local  
          prosecutor and still protects the process server's right to due  
          process by giving him or her a hearing by an administrative law  
          judge."   

          4.  Method of service of first attempt is unclear  

          This bill would regulate the first attempt of service of a  
          summons and complaint.  The bill's language is not clear as to  
          which method of service (personal, mail, or published) can only  
          be effectuated during the hours of 7:00 a.m. and 8:00 p.m.   
          Since the plaintiff cannot control the time of delivery or  
          reading of mail received by the defendant or the moment at which  
          the defendant receives notification of service by publication,  
          it is presumed the author intended the time restriction only to  
          apply to personal service. 

          5.  Bill provisions conflict with existing requirements for  
            service on businesses  

          This bill would restrict the time during which service of the  
          summons and complaint on a defendant could be effectuated.   
          However, this bill is not clear as to which types of defendants  
          (individuals or entities) this bill applies.  Existing law  
          provides that a business may only be served during usual office  
          hours.  (Code Civ. Proc. Sec. 415.95(a).)  The process server  
          could interpret "usual office hours" to mean between 9:00 a.m.  
          and 5:00 p.m., as provided under Code of Civil Procedure Section  
          1011(a).  However, this bill would conflict with the existing  
          statute for service of process on a business because it would  
          provide that service of a summons and complaint could be made  
          between 7:00 a.m. and 8:00 p.m.  

          6.  Clarification of party to which first attempt is being  
            restricted  

          This bill would regulate the first attempt of service of a  
          summons and complaint.  The bill is unclear as to whether this  
                                                                      



          SB 984 (Hollingsworth)
          Page 8 of ?



          provision applies to the first attempt to serve every defendant  
          of the summons and complaint or just the first defendant being  
          served.  This bill appears to only apply to the first service of  
          the first defendant being served with the summons and complaint.  
           This interpretation is appropriate given that, once the first  
          defendant is served, additional defendants could then be made  
          aware of the action and may attempt to avoid service of process.  
           Many times, when defendants are aware of the existence of a  
          filed action and the pending service of the summons and  
          complaint, the defendants make service very difficult.  

          7.  Clarification of summons and complaint versus notice of  
            motion  

          It is important to note that this bill pertains to service of a  
          summons and complaint and its language would be added into the  
          Code of Civil Procedure section regulating the service of  
          summons and complaints.  A separate statute exists for the  
          regulation of service of notice of motions.  (See Code Civ.  
          Proc. Sec. 1011.)  This bill does not affect the service hours  
          of notices of motions.
          8.    Amendments to address concerns  

          In order to address the above concerns, Committee staff  
          recommends the following amendments.  

             Amendments:

              1.   On page 2, line 3, after "to" insert "personally".

             2.   On page 2, line 5, after "evening" insert ", subject to  
               Section 415.95." 

          9.  Sunset  

          This bill seeks to establish a timeframe within which the first  
          attempt of a summons and complaint must be served.  To make  
          certain this new timeframe is working effectively, and there are  
          no unintended effects upon the ability of plaintiffs to serve a  
          summons and complaint, the Committee should amend the bill to  
          include a three-year sunset provision. 


           Support  :  None Known

           Opposition  :  Absolute Investigations; Assured Judgment Recovery;  
                                                                      



          SB 984 (Hollingsworth)
          Page 9 of ?



          Astute Investigations; Atwater Investigations; Auto Temp  
          Investigations; Available Investigations Services; Beren  
          Investigative Services; Bermudez Group, Inc.; Blackburn  
          Investigative Services; Blais Investigating Agency; Bosco Legal  
          Services, Inc.; Brady Investigations; Britton Investigations &  
          Legal Services; Bryan L. Giles & Associates; Bryant  
          Investigations & Altruistic Security Services; Business  
          Controls, Inc.; California Association of Legal Support  
          Professionals; California Association of Licensed Investigators,  
          Inc.; Commercial Process Serving, Inc.; Consumer Attorneys of  
          California; Deanne Acu?a Investigative Services; Discovery  
          Detective Group; Discovery Judgment Recovery; Escape  
          Investigations; Fasulo Investigations; GAB Investigations;  
          Gailey Associates, Inc.; Gane Investigations; Ginter  
          Investigations, Inc.; Grotewold Investigations; Hilton  
          Investigations; Hoy & Associates Investigations; InfoNuggets  
          Network; Integrity Nationwide Investigations; Intelle Quest  
          Investigations; Inter-Agency Investigations, Inc.; Intercoastal  
          Investigations; Kelsay Investigations; Kimberly Acu?a  
          Investigative Services; Jean Kyles & Associates; JHRI, Inc.;  
          Klopper Investigations; Krout and Schneider, Inc.; La Marche &  
          Bradley Investigations; Legal Research Services Investigations,  
          Inc.; Link Information Service; Luginbill Investigative  
          Services, Inc.; Michael J. Martin Investigations; Murphy &  
          Associates, Inc.; On the QT Investigations; Pacific  
          Investigations; Palma & Palma Investigations; Palomar  
          Investigative Group, Inc.; Parker & Associates; PCG Consultants;  
          Perrin Investigative Service; PI Resources; Private  
          Investigative Research Company; Probity Investigations; Process  
          Server Institute; Proserviceplus; Rod Blythe Investigations;  
          Safari Legal Support Services; Sarkis Detective Agency; Sellers  
          Investigation Group; Streamline Investigations, Inc.; Sunrise  
          Investigative Services; Thin Blue Line Investigations; West  
          Harbor Intelligence Incorporated; Wheatley, Scott & Company;  
          Whiteacre Investigations; three individuals

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known

           Prior Legislation  :  None Known 

                                   **************
          
                                                                      



          SB 984 (Hollingsworth)
          Page 10 of ?