BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 173|
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THIRD READING
Bill No: AB 173
Author: Gatto (D), et al.
Amended: 3/30/11 in Assembly
Vote: 27 - Urgency
SENATE JUDICIARY COMMITTEE : 5-0, 6/14/11
AYES: Evans, Harman, Blakeslee, Corbett, Leno
ASSEMBLY FLOOR : 61-0, 4/14/11 - See last page for vote
SUBJECT : Armenian Genocide victims
SOURCE : Author
DIGEST : This bill extends a December 31, 2010 statutory
deadline in order to authorize any victims of the Armenian
Genocide, or their heirs or beneficiaries, who reside in
California, and have a claim arising out of an insurance
policy purchased or in effect in Europe or Asia from
1875-1923, to bring suit in California seeking benefits
under those insurance policies from insurers. This bill
provides that such actions shall not be dismissed for
failure to comply with the otherwise applicable statute of
limitation provided that the action is filed on or before
December 31, 2016.
ANALYSIS : Existing law generally provides that civil
actions must be commenced within applicable statutes of
limitations, without exception, unless the Legislature
prescribes a different limitation by statute. (Code of
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Civil Procedure Section 312.) Under current law, the
Legislature may also prescribe no limitation at all. (See
Code of Civil Procedure Section 348)
Existing law provides that for actions based upon any
contract, obligation, or liability founded upon an
instrument in writing, the accrual period is four years,
except as specified. (Code of Civil Procedure Section 337)
Existing law provides that when a cause of action has
arisen in another state, or in a foreign country, and by
the laws thereof an action thereon cannot there be
maintained against a person by reason of the lapse of time,
an action thereon shall not be maintained against him in
this state, except in favor of one who has been a citizen
of this state, and who has held the cause of action from
the time it accrued. (Code of Civil Procedure Section 361)
Existing law permits a court of this state to exercise
jurisdiction on any basis not inconsistent with the
Constitution of this state or of the United States. (Code
of Civil Procedure Section 410.10)
Existing law provides that, notwithstanding any other
provision of law, any Armenian Genocide victim, or his/her
heir or beneficiary, who resides in this state and has a
claim arising out of an insurance policy or policies
purchased or in effect in Europe or Asia between 1875 and
1923 from an insurer, as defined, to bring a legal action
or continue a pending legal action to recover on that claim
in California court. (Code of Civil Procedure Section
354.4(b))
Existing law defines "Armenian Genocide victim" as any
person of Armenian or other ancestry living in the Ottoman
Empire during the period of 1915-1923, inclusive, who died,
was deported, or escaped to avoid persecution during that
period. (Code of Civil Procedure Section 354.4(a)(1))
Existing law defines "insurer" as an insurance provider
doing business in the state, or whose contacts in the state
satisfy the constitutional requirements for jurisdiction,
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that sold life, property, liability, health, annuities,
dowry, educational, casualty, or any other insurance
covering persons or property to persons in Europe or Asia
at any time between 1875 and 1923. (Code of Civil
Procedure Section 354.4(a)(2))
Existing law prohibits such an action, as described above,
from being dismissed for failure to comply with any
applicable statute of limitation, so long as the action is
commenced on or before December 31, 2010. (Code of Civil
Procedure Section 354.4(c).) Existing case law finds there
is no federal preemption of this law, reversing a previous
decision finding for preemption. ( Movsesian v. Victoria
Versicherung AG (2010) 629 F.3d 901, reversing Movsesian v.
Victoria Versicherung AG (2009) 578 F.3d 1052)
This bill extends the deadline to commence such an action,
as described above, without dismissal of that action for
failure to comply with any applicable statute of
limitation, to December 31, 2016.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/15/11)
American Federation of State, County and Municipal
Employees, AFL-CIO
Armenian Council of America
Consumer Attorneys of California
OPPOSITION : (Verified 6/15/11)
Turkish Peace & Justice Committee in California
ARGUMENTS IN SUPPORT : According to the author, this bill
seeks to maintain the rights of victims of the Armenian
Genocide and their heirs. The author writes, "�e]xisting
law allowed victims or beneficiaries of the Armenian
Genocide to file action in court on the insurance policies
issued during the Armenian Genocide. Under current law,
the statute of limitations allowing the actions to be filed
lapsed on December 31, 2010. AB 173 extends the statute of
limitation to file action on these claims from December 31,
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2010 to December 31, 2016."
In support of the bill, the Armenian Council of America
describes the need for victims to continue to have the
right to file action in California under this extended
deadline: "During the period between 1915 and 1923,
numerous Armenians living in their historical homeland,
then located in the Ottoman Empire, were victims of the
Armenian Genocide. Many of these victims and their
descendants have been deprived of life insurance benefits
due under policies issued in Europe or Asia by insurance
companies prior to and during the Armenian Genocide."
Also in support of the bill, the American Federation of
State, County and Municipal Employees, AFL-CIO writes that,
"�g]iven the scope of an atrocity like the Armenian
Genocide, the equitability of a statute of limitation on
legal actions is difficult to determine." AFSCME argues
that extending the deadline will allow for "more time for
Armenian Genocide victims in the state, and their heirs or
beneficiaries, to build cases, find materials, and take
legal action."
ARGUMENTS IN OPPOSITION : Writing in opposition to the
bill, the Turkish Peace & Justice Committee in California
alleges that "�e]xtending AB 173 is to extend the
moneymaking scam operation that is going on. It is
unlikely that any insurance policies were sold for the
period of 1875-1923 in this region (Eastern Anatolia)�.]
During that time, this region was a no-man's land
equivalent to California prior to the Gold Rush." The
Committee's letter asserts that the "Armenian Diaspora"
obtained large settlements by suing insurance companies
using "imaginary insurance policies" and "attacking them
and tarnishing the company's image through the media. To
save the company's image and unnecessary legal exp�e]nses,
�the] insurance company give�s] up and give�s] �the]
Armenian Diaspora some hush money." The Committee claims
in this opposition letter that such settlements include a
$20 million settlement from New York Life Insurance Company
and $17 million from AXA Life Insurer Company.
ASSEMBLY FLOOR : 61-0, 4/14/11
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AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Charles Calderon, Campos, Carter, Cedillo, Chesbro, Cook,
Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong,
Fuentes, Furutani, Gatto, Gordon, Hagman, Halderman,
Hall, Hayashi, Roger Hern�ndez, Hill, Huber, Hueso,
Huffman, Jeffries, Lara, Bonnie Lowenthal, Ma, Mansoor,
Miller, Mitchell, Monning, Nestande, Nielsen, Pan, Perea,
V. Manuel P�rez, Portantino, Silva, Skinner, Smyth,
Solorio, Swanson, Torres, Valadao, Wieckowski, Yamada,
John A. P�rez
NO VOTE RECORDED: Achadjian, Bill Berryhill, Butler,
Conway, Galgiani, Garrick, Gorell, Grove, Harkey, Jones,
Knight, Logue, Mendoza, Morrell, Norby, Olsen, Wagner,
Williams, Vacancy
RJG:mw 6/15/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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