BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          AB 1403 (Committee on Judiciary)
          As Amended June 23, 2011
          Hearing Date: July 5, 2011
          Fiscal: No
          Urgency: No
          RD
               

                                        SUBJECT
                                           
                                    Civil Actions

                                      DESCRIPTION  

          This bill would provide that the deadline for acceptance or 
          rejection of the addition or reduction of damages is 30 days 
          from the date the conditional order is served by the clerk of 
          the court, if a deadline is not set forth in the conditional 
          order.  This 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 granted automatically.  In addition, a party 
          filing and serving an acceptance of a conditionally ordered 
          addition or reduction of damages must concurrently serve and 
          submit to the court a proposed amended judgment reflecting the 
          modified judgment amount, as well as any other uncontested 
          judgment awards.  

          This bill would also provide that a prevailing party could 
          recover costs for court interpreter fees for a qualified court 
          interpreter, authorized by the court for an indigent person as 
          specified.  

          This bill would also make non-substantive changes to the 
          existing voir dire statute.  

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

                                      BACKGROUND  

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          The California Code of Civil Procedure permits a party to move 
          for a new trial on the issue of damages where he or she believes 
          the jury award was either inadequate or excessive.  When a new 
          trial limited to the issue of damages would be proper, a judge 
          may in his or her discretion, make an order granting the new 
          trial, subject to the condition that the motion for new trial is 
          denied if the party against whom the verdict has been rendered 
          consents to an addition to the award, or if the party for whom 
          the judgment was a reduction to the award, in an amount that the 
          court, in its independent judgment, determines from the evidence 
          to be fair and reasonable.  This bill would make both clarifying 
          amendments to the existing provisions and add a statutory 
          default deadline in the event that the court does not provide a 
          deadline in the conditional order by which the party whose 
          agreement is necessary in place of proceeding to trial. 

          In addition, the California Code of Civil Procedure also permits 
          certain costs to be recoverable by a prevailing party.  
          Currently, there is no provision providing for recovery of costs 
          for court interpreters provided to non-English speakers in civil 
          cases. This bill would provide a limited remedy by providing for 
          recovery of costs for indigent non-English speakers who are 
          represented by a qualified legal services project authorized by 
          the State Bar.  

          In 1990, California enacted AB 3820 (Brown, Ch. 1232, Stats. 
          1990) adding procedures governing the selection of a fair and 
          impartial jury in civil jury trials to the Code of Civil 
          Procedure.  The enactment of the voir dire provisions contained 
          in that bill were extremely controversial but were the result of 
          compromises made by the Judicial Council and representatives of 
          the State Bar, California Defense Bar and the Trial Lawyers 
          Association, as noted in the Senate Judiciary Committee 
          analysis.  (See Sen. Judiciary Com. (1989-1990 Reg. Session) 
          August 27, 1990, pgs. 2-5.)  Recognizing the need to ensure any 
          amendments do not disrupt this existing compromise, the current 
          version of this bill would make only a technical, 
          non-substantive change to those provisions.  

                                CHANGES TO EXISTING LAW
           
          1.    Existing law  provides that 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:
                 if the ground for granting a new trial is inadequate 
                                                                      



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               damages, make its order granting the new trial subject to 
               the condition that the motion is denied if the party 
               against whom the verdict has been rendered consents to an 
               addition of so much thereto as the court in its independent 
               judgment determines from the evidence to be fair and 
               reasonable; or 
                 if the ground for granting a new trial is excessive 
               damages, make its order granting the new trial subject to 
               the condition that the motion is denied if the party in 
               whose favor the verdict has been rendered consents to a 
               reduction of so much thereof as the court in its 
               independent judgment determines from the evidence to be 
               fair and reasonable.  (Code Civ. Proc. Sec. 662.5.)  

             This bill  would amend those provisions to provide that 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: 
                 if the ground for granting a new trial is inadequate 
               damages, issue a conditional order granting the new trial 
               unless the party against whom the verdict has been rendered 
               consents to the addition of damages in an amount the court 
               in its independent judgment determines from the evidence to 
               be fair and reasonable;  or 
                 if the ground for granting a new trial is excessive 
               damages, issue a conditional order granting the new trial 
               unless the party in whose favor the verdict has been 
               rendered consents to the reduction of so much thereof as 
               the court in its independent judgment determines form the 
               evidence to be fair and reasonable.  

             This bill  would provide that if a conditional order does not 
            set forth the deadline for acceptance or rejection of the 
            addition or reduction of damages, the deadline is 30 days from 
            the date the conditional order is served by the clerk of the 
            court.  In addition, the bill provides that failure to respond 
            to the order as specified 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

             This bill  would require that a party filing and serving an 
            acceptance of a conditionally ordered addition or reduction of 
            damages to concurrently serve and submit to the court a 
            proposed amended judgment reflecting the modified judgment 
            amount, as well as any other uncontested judgment awards. 
          
                                                                      



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          2.    Existing law  defines "qualified legal services project" as 
          either:
                 a nonprofit project incorporated and operated 
               exclusively in California that provides as its primary 
               purpose and function free legal services to indigent 
               persons and that has quality control procedures approved by 
               the State Bar; or 
                 a program operated exclusively in California by a 
               nonprofit law school accredited by the State Bar that has: 
               o      operated for at least two years at a cost of at 
                 least twenty thousand dollars ($20,000) per year as an 
                 identifiable law school unit with a primary purpose and 
                 function of providing legal services without charge to 
                 indigent persons;
               o      quality control procedures approved by the State 
                 Bar.  (Bus. & Prof. Code Sec. 6213(a)

             Existing law  defines "indigent person" as a person whose 
            income is (1) 125 percent or less of the current poverty 
            threshold established by the United States Office of 
            Management and Budget, or (2) who is eligible for Supplemental 
            Security Income or free services under the Older Americans Act 
            or Developmentally Disabled Assistance Act.  (Bus. & Prof. 
            Code Sec. 6213(d).) 

             Existing law  defines "prevailing party" as the party with a 
            net monetary recovery, a defendant in whose favor a dismissal 
            is entered, a defendant where neither plaintiff nor defendant 
            obtains any relief, and a defendant as against those 
            plaintiffs who do not recover any relief against that 
            defendant.  When any party recovers other than monetary relief 
            and in situations other than as specified, the "prevailing 
            party" shall be as determined by the court, and under those 
            circumstances, the court, in its discretion, may allow costs 
            or not and, if allowed may apportion costs between the parties 
            on the same or adverse sides pursuant to rules adopted as 
            specified.  (Code Civ. Proc. Sec. 1032(a)(4).)

             Existing law  provides that except as otherwise provided by 
            statute, a prevailing party is entitled as a matter of right 
            to recovery costs in any action or proceeding.  (Code Civ. 
            Proc. Sec. 1032(a)(5).) 

             Existing law  enumerates the items allowable as costs under 
            Section 1032, including:
                 filing, motion, and jury fees; 
                                                                      



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                 juror food and lodging, as specified; 
                 taking, video recording, and transcribing necessary 
               depositions, as specified; 
                 service of process, as specified; 
                 expenses of attachment including keepers fees; 
                 premiums on necessary surety bonds;
                 ordinary witness fees, as specified; 
                 court report fees as established by statute; 
                 models and blowups of exhibits and photocopies of 
               exhibits that may be allowed if they were reasonably 
               helpful to aid the trier of fact; and 
                 any other item that is required to be awarded to the 
               prevailing party pursuant to statute as an incident to 
               prevailing in the action at trial or on appeal.  (Code Civ. 
               Proc. 1033.5(a).)  

             This bill  would add to the list above court interpreter fees 
            for a qualified court interpreter authorized by the court for 
            an indigent person represented by a qualified legal service 
            project, as specified.  

          3.    Existing law  provides procedures governing the selection of 
            a fair and impartial jury in civil jury trials, among which it 
            provides that specific unreasonable or arbitrary time limits 
            shall not be imposed.  (Code Civ. Proc. Sec. 222.5.)

             This bill  would make a technical, nonsubstantive change to 
            that provision. 

                                        COMMENT
           
          1.    Stated need for the bill
           
          According to the author, "�t]his bill seeks to improve civil 
          procedure by (1) strengthening protections against potential 
          bias among prospective jurors in order to ensure a fair and 
          impartial jury; (2) clarifying 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; and (3) 
          expanding access to qualified court interpreters by allowing 
          interpreter costs to be recovered by indigent parties 
          represented by a qualified legal services program approved by 
          the State Bar."  

          The Chamber of Commerce writes in support of this bill, and 
          specifically, the provisions on new trials based on inadequate 
                                                                      



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          or excessive damages: that "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.  . . .  By establishing this 30-day deadline to 
          respond, AB 1403 �e]nsures 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.  AB 1403 will create certainty and 
          encourage efficiency in this area of civil litigation, saving 
          the courts and litigants valuable time and money."  

          Writing in support of the bill's provision on recovery of costs 
          for court interpreters is the Asian Americans for Civil Rights & 
          Equality (AACRE): 

            The US Census American Community Survey, which was released in 
            December 2010, indicates that 19.8 percent (6.5 million) of 
            Californians have a limited proficiency in English. This is an 
            increase of half a million from 2000. . . . Civil courts 
            govern critical issues that affect the well being of 
            Californians, involving areas such as child custody, child 
            support, housing, and consumer protections.  For limited 
            English proficient individuals, language assistance is needed 
            so that they can meaningfully access the courts; understand 
            pleadings, forms or other legal documents; communicate with 
            clerks or court staff; and participate in court proceedings.  
            AB 1403 will promote access to the courts by including court 
            interpreter fees for a qualified court interpreter who is 
            authorized by the court for an indigent person represented by 
            a qualified legal services project to the allowable costs 
            under California �C]ode of Civil Procedure Section 1033.5(a)."

          2.    Provisions relating to additur and remittitur  

          Under current law, upon a motion of a party for a new trial 
          because the party feels the jury has returned an inadequate or 
          excessive damage award, and the judge grants that order, the 
          judge may but is not required to establish a deadline for 
          parties to respond to a conditional order for a new trial.  As a 
          result of this gap in law, unless the judge voluntarily includes 
          a deadline for a response in the conditional order, one party 
          can unnecessarily delay resolution of a dispute or the 
          commencement of a new trial.  This bill would provide a default 
          deadline in the event that the judge does not issue a 
          conditional order that has a deadline included, and would 
          provide that a lack of response by that deadline requires a new 
                                                                      



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          trial limited to the issue of damages to be granted 
          automatically.  

          Judicial Council writes that it agrees there is a need to 
          clarify this part of the law and that this bill "will assist 
          both litigants and the courts by creating a clear deadline for 
          an acceptance or rejection of the addition or reduction of 
          damages, and a new trial limited to the issue of damages granted 
          automatically, will help avoid the uncertainty that currently 
          exists and ensure a more timely resolution of these matters.  
          Further, by requiring the party who serves an acceptance of a 
          conditionally ordered addition or reduction of damages to 
          prepare an amended judgment reflecting the modified judgment 
          amount �this bill] will assist the courts in the administration 
          of these cases."  

          3.     Recovery of court interpreter costs by prevailing parties  

          Existing law permits prevailing parties to recover certain 
          costs.  (See Code Civ. Proc. Secs. 1032 and 1033.5.)  This bill 
          would add to those items allowable as costs court interpreter 
          fees for a qualified court interpreter authorized by the court 
          for an indigent person who is represented by a qualified legal 
          services project. 

          The author proposes the following clarifying amendments: 

            On page 5, line 21, after "person" insert "represented by a 
            qualified legal services project"

            On page 5, line 22, strike "subdivision (d) of"

          4.    Technical changes relating to voir dire statute

           This bill was recently amended to contain only technical, 
          nonsubstantive changes to the existing voir dire provision, 
          reflecting an agreement by the author and stakeholders to 
          continue discussions until consensus language can be reached in 
          a joint effort involving the Consumer Attorneys of California 
          (CAOC) and the Judicial Council. 
           
           By way of background, the law regarding voir dire is a heavily 
          contentious area of law for practitioners and judges alike.  As 
          noted by the Judicial Council, the original statute was the 
          result of an enormous compromise among parties involved at the 
          time of its drafting.  (See AB 3820 (Brown, Ch. 1232, Stats. 
                                                                      



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          1990.))  While Judicial Council has supported the provisions 
          pertaining to additur and remittitur in this bill and remains 
          neutral on the provisions providing for recovery of court 
          interpreter costs as specified in this bill, Judicial Council 
          had significant concerns with the prior version of this bill, 
          which would have required, rather than permit, the trial judge 
          to allow counsel to conduct a liberal and probing examination of 
          prospective jurors that is calculated to discover bias or 
          prejudice. 

          The Judicial Council states in its letter in support for the 
          additur and remittitur section of this bill, that with respect 
          to the voir dire section, it "continues to have serious concerns 
          that �the] provisions would have unduly interfered with the 
          court's ability to manage the voir dire process in a timely 
          fashion.  However, we very much appreciate the responsiveness of 
          the author . . . to these concerns and their willingness to 
          amend the bill by making only non-substantive changes to the 
          voir dire statute while we pursue cooperative efforts to develop 
          a possible alternative consensus approach to addressing their 
          concerns."  

          As such, the bill currently only makes a technical change to 
          clarify that unreasonable or arbitrary time limits shall not be 
          imposed in any case.  
           Support  :  Asian Americans for Civil Rights & Equality (AACRE); 
          California Chamber of Commerce; Consumer Attorneys of California 
          (CAOC); Judicial Council (on the second section of the bill); 
          Legal Aid Association of California (LAAC); OneJustice

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author 

           Related Pending Legislation  :   None Known

           Prior Legislation  :  None Known

           Prior Vote  :

          Assembly Floor (Ayes 73, Noes 1)
          Assembly Judiciary Committee (Ayes 9, Noes 0)

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