BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1403
                                                                  Page 1

          Date of Hearing:  May 3, 2011

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                  AB 1403 (Judiciary) - As Introduced: March 7, 2011
                                           
                               As Proposed to be Amended
                                           
          SUBJECT  :  CIVIL PROCEDURE: JURY TRIALS

           KEY ISSUE  :  SHOULD ADDITIONAL PROTECTIONS BE ENACTED TO ENSURE 
          THAT JURIES ARE FAIR AND IMPARTIAL AND THAT JURY AWARDS BE 
          SUBJECT TO CORRECTION REGARDING REDUCTION OF OR ADDITION TO 
          DAMAGES?

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

                                      SYNOPSIS
          
          This bill seeks to improve civil procedure by strengthening 
          protections against potential bias among prospective jurors in 
          order to ensure a fair and impartial jury, and to clarify the 
          process and deadlines when a court grants a conditional order 
          for a new trial based on reduction of or addition to a jury's 
          award of damages.  The bill united the California Chamber of 
          Commerce and the Consumer Attorneys of California in support.  
          The Judicial Council supports one provision but is not yet in 
          support of the other although promising discussions continue and 
          all involved seek consensus.  There is no opposition.

           SUMMARY  :  Reforms civil procedure regarding jury trials.  
          Specifically,  this bill  :  

          1)Would require the trial judge to permit liberal and probing 
            examination of prospective jurors in order to discover 
            potential bias or prejudice.

          2)Would provide that the deadline for acceptance or rejection of 
            the addition or reduction of damages after a jury award is 30 
            days from the date the conditional order is issued, if a 
            deadline is not set forth in the conditional order.  The bill 
            would also provide that failure to respond to the order shall 
            be deemed a rejection of the addition or reduction of damages, 
            and a new trial limited to the issue of damages shall be 








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            granted automatically.  In addition, the bill would require a 
            party serving an acceptance of a conditionally ordered 
            addition or reduction of damages to prepare an amended 
            judgment reflecting the modified judgment amount, as well as 
            any other uncontested judgment awards.

           EXISTING LAW  :  
           
          1)Existing law requires a trial judge to examine prospective 
            jurors, and, upon completion of the judge's examination, 
            grants counsel for each party the right to examine, by oral 
            and direct questioning, any prospective juror in order to 
            enable counsel to intelligently exercise peremptory challenges 
            and challenges for cause.  Existing law provides that when 
            examination is conducted by counsel for the parties, the trial 
            judge should permit liberal and probing examination calculated 
            to discover bias or prejudice, as specified.

          2)Authorizes the trial court, in its discretion, in any civil 
            action where after trial by jury an order granting a new trial 
            limited to the issue of damages would be proper, to make a 
            conditional order granting a new trial.  If the ground for 
            granting a new trial is inadequate damages, the order granting 
            the new trial may be subject to the condition that the motion 
            for a new trial is denied if the party against whom the 
            verdict has been rendered consents to an increased verdict, as 
            specified.  If the ground for granting a new trial is 
            excessive damages, the order granting the new trial may be 
            subject to the condition that the motion for a new trial is 
            denied if the party in whose favor the verdict has been 
            rendered consents to a reduction of the verdict, as specified.

           COMMENTS  :  This bill unites the California Chamber of Commerce 
          and the Consumer Attorneys of California in the cause of civil 
          procedure reform regarding jury trials.

          The California Chamber of Commerce argues that the bill provides 
          clarity in the Code of Civil Procedure as it relates to an order 
          granting a new trial based on inadequate or excessive damages. 
          "Under current law, judges are not required to establish a 
          deadline for parties to respond to a conditional order for a new 
          trial.  This is the situation when a party to civil litigation 
          moves for a new trial because it feels the jury has returned an 
          inadequate or excessive damage award.  A judge may grant the 
          order, but condition it upon acceptance of a modified award.  








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          Under current law, if the judge does not voluntarily include a 
          deadline for a response in the conditional order, one party can 
          unnecessarily delay resolution of a dispute and/or the 
          commencement of a new trial.   AB 1403 provides clarity in this 
          area, and will expedite resolution of legal disputes by 
          establishing a default deadline in the absence of one being set 
          by the judge.  Specifically, Section 2 of the bill proposes to 
          amend the Code of Civil Procedure, Section 662.5, to establish a 
          default deadline of 30 days for a party to respond to a 
          conditional order for a new trial, should the judge fail to set 
          a deadline in the order.  In addition, the section would make 
          clear that a failure to respond by the deadline will be deemed a 
          rejection of the offer, triggering a new trial on the issue of 
          damages. By establishing a 30-day deadline to respond, AB 1403 
          insures that these matters will be dealt with expeditiously, and 
          that the opposing party will have time to appeal, if they so 
          choose, once the conditional offer has been accepted or 
          rejected.

          The Consumer Attorneys of California also supports the bill, 
          emphasizing the need to improve the process for examination of 
          prospective jurors.  "AB 1403 would address the issue of 
          unreasonable and arbitrary restrictions on attorney voir dire of 
          potential members of a jury.  We join with our colleagues in the 
          defense bar in the belief that liberal and probing voir dire is 
          necessary to ensure that the 7th Amendment right to a jury trial 
          is meaningful.  Based upon an informal survey of our statewide 
          membership, it is estimated that at least one-third of the trial 
          courts impose what are considered to be unreasonable limitations 
          on attorney-conducted voir dire.  At the time of its passage, 
          the law was intended to prohibit these limitations, but its 
          enforcement has eroded over time, and it is now time for the 
          statute to be updated and modernized.  Our members have reported 
          some "local, local rules" where there are arbitrary limits of 30 
          minutes for voir dire in unlimited civil jurisdiction cases.  
          This goes directly contrary to the original intent of the 
          statute.  Some other individual judges are denying jury 
          questionnaires, "rehabilitating" jurors who have already flatly 
          stated they cannot be impartial, and slowing down voir dire by 
          failing to provide a list of prospective jurors in the order 
          they will be called."

          CAOC notes that the current language of the bill - changing the 
          current statutory directive from "should" to "shall" - has not 
          yet won the endorsement of the Judicial Council, and that 








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          discussion on this provision continues.  

           Author's Proposed Clarifying Amendments.   In order to 
          incorporate new suggestions from the Judicial Council, the 
          author proposes to amend section 2 of the bill at this time 
          while discussions continue on section 1, as follows:

          662.5. (a) In any civil action where after trial by jury an 
          order granting a new trial limited to the issue of damages would 
          be proper, the trial court may in its discretion:
              (1) If the ground for granting a new trial is inadequate 
          damages,  make its   issue a conditional  order granting the new 
          trial  subject to the condition that the motion for a new trial 
          is denied if   unless  the party against whom the verdict has been 
          rendered consents to  an   the  addition of  so much thereto   damages 
          in an amount   as  the court in its independent judgment determines 
          from the evidence to be fair and reasonable. 
              (2)  If the ground for granting a new trial is excessive 
          damages,  make its   issue a conditional  order granting the new 
          trial  subject to the condition that the motion for a new trial 
          is denied if   unless  the party in whose favor the verdict has 
          been rendered consents to  a   the  reduction of  so much thereof as  
           damages in an amount  the court in its independent judgment 
          determines from the evidence to be fair and reasonable. 
             (b) If a deadline for acceptance or rejection of the addition 
          or reduction of damages is not set forth in the conditional 
          order, the deadline is 30 days from the date the conditional 
          order is  issued   served by the clerk  . Failure to respond to the 
          order in accordance with this section shall be deemed a 
          rejection of the addition or reduction of damages and a new 
          trial limited to the issue of damages shall be granted 
          automatically.  
             (c) A party  filing and  serving an acceptance of a 
          conditionally ordered addition or reduction of damages shall 
           prepare   at the same time serve and submit to the court a 
          proposed   an  amended judgment reflecting the modified judgment 
          amount, as well as any other uncontested judgment awards. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Chamber of Commerce
          Consumer Attorneys of California









                                                                  AB 1403
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           Opposition 
           
          None on file
           

          Analysis Prepared by  :  Kevin G. Baker / JUD. / (916) 319-2334