BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2372|
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                                    CONSENT


          Bill No:  AB 2372
          Author:   Hill (D)
          Amended:  6/11/12 in Senate
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  5-0, 6/19/12
          AYES:  Evans, Harman, Blakeslee, Corbett, Leno
           
          ASSEMBLY FLOOR  :  73-0, 4/30/12 - See last page for vote


           SUBJECT  :    Deposition transcripts:  costs

           SOURCE  :     Deposition Reporter Association of California


           DIGEST  :    This bill requires that the requesting attorney 
          or party appearing in propria persona, upon the written 
          request of a deposition officer who has obtained a final 
          judgment for payment of services, provide to the deposition 
          officer an address that can be used to effectuate personal 
          service for the purpose of an order of examination, as 
          specified.   

           ANALYSIS  :    Existing law provides a comprehensive 
          procedure for the noticing, conducting and transcribing, or 
          recording of oral depositions.  (Code of Civil Procedure 
          (CCP) Section 2025 et seq.) 

          Existing law requires the party noticing the deposition to 
          bear the cost of the
          transcription, unless the court, on motion and for good 
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          cause, orders that the cost be borne or shared by another 
          party.  (CCP Section 2025.510(b))

          Existing law requires the requesting attorney or party 
          appearing in propria persona to timely pay the deposition 
          officer or the entity providing the services of the 
          deposition officer for the transcription or copy of the 
          transcription, as specified, and any other deposition 
          product or service, as defined, that is requested either 
          orally or in writing.  Existing law creates an exception 
          for when the deposition officer or entity is notified in 
          writing at the time the services or products are requested, 
          the party or other identified person will be responsible 
          for payment, and further specifies that it does not 
          prohibit or supersede an agreement between an attorney and 
          a party allocating responsibility for the payment of 
          deposition costs to the party.  (CCP Section 2025.510(h))

          Existing law provides, among other things, that a summons 
          may be served by personal delivery of a copy of the summons 
          and of the complaint to the person to be served.  Existing 
          law provides that service of a summons in this manner is 
          deemed complete at the time of such delivery.  (CCP Section 
          415.10)

          Existing law provides that a judgment creditor may apply to 
          the proper court for an order requiring the judgment debtor 
          to appear before the court, or before a referee appointed 
          by the court, at a time and place specified in the order, 
          to furnish information to aid in enforcement of the money 
          judgment.  (CCP Section 708.110(a))

          Existing law requires that the judgment creditor personally 
          serve a copy of the order on the judgment debtor not less 
          than 10 days before the date set for the examination, in 
          the manner specified in Section 415.10.  Existing law 
          provides that service of the order creates a lien on the 
          personal property of the judgment debtor for a period of 
          one year from the date of the order unless extended or 
          sooner terminated by the court.  (CCP Section 
          708.110(c)-(d))

          This bill requires that requesting attorney or party 
          appearing in propria persona, upon the written request of a 







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          deposition officer who has obtained a final judgment for 
          payment of services, as specified, provide to the 
          deposition officer an address that can be used to 
          effectuate personal service in the manner specified under 
          law.

           Background
           
          CCP Section 2025.510(b) requires the party noticing the 
          deposition to bear the cost of the transcription, unless 
          the court, on motion and for good cause, orders that the 
          cost be borne or shared by another party.  In 2007, AB 1211 
          (Price, Chapter 115, Statutes of 2007), among other things, 
          enacted the additional requirement that a requesting 
          attorney, or a party representing himself/herself, has the 
          obligation to timely pay for the deposition product or 
          service, as defined, unless responsibility for the payment 
          is otherwise provided by law, or the deposition officer or 
          entity is notified in writing that another party or 
          identified person will be responsible for the payment.  

          AB 1211 sought to address the fact that deposition 
          reporting professionals, mostly non-lawyers, independent 
          contractors, and small businesses, had little recourse 
          under existing law when an attorney or client failed to pay 
          them in a timely manner.  While in some cases they could 
          look to the State Bar and file a complaint against a 
          non-paying attorney, for a charge to be brought had to have 
          proof that the attorney intentionally decided not to pay 
          for the services.  Therefore, the most common remedies were 
          traditional debt collection services and small claims 
          court, both of which require additional expense.  A study 
          reportedly indicated that deposition reporting 
          professionals receive payment for their services as much as 
          90 days, and in some cases, as much as two years after 
          providing the service - not including deposition service 
          fees that are never paid.  Therefore, instead of forcing 
          deposition professionals into the cumbersome process of 
          collections and small claims court, AB 1211 sought to 
          clearly state that a requesting attorney, or a person 
          representing him or herself, is responsible for timely 
          payment of deposition product or service costs.  (See 
          Senate Judiciary Committee analysis of AB 1211 (2007-08 
          Session), April 18, 2007, p. 2.)







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          This bill, sponsored by the Deposition Reporter Association 
          of California, seeks to further assist deposition 
          professionals who still face difficulty in receiving 
          payment of deposition product or service costs, even after 
          obtaining a judgment against the attorney to pay for the 
          services rendered.  This bill requires that requesting 
          attorney or party appearing in propria persona, upon the 
          written request of a deposition officer who has obtained a 
          final judgment for payment of services, provide to the 
          deposition officer an address that can be used to 
          effectuate personal service for the purpose of an order of 
          examination, as specified. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  6/21/12)

          Deposition Reporter Association of California (source)


          ARGUMENTS IN SUPPORT  :    According to the author, "AB 2372 
          will assist deposition officers in collecting money owed to 
          them by attorneys who have attempted to evade collection.  
          It requires an attorney, upon request, to provide a 
          deposition officer who has obtained a final judgment for 
          payment of services with an address that can be used to 
          effectuate legal service of process of collection-related 
          documents."

          The bill's sponsor, the Deposition Reporter Association of 
          California (DRA), writes that "AB 2372 (Hill) seeks to 
          ensure that those very few attorneys adjudged to be liable 
          under (existing law) who then refuse to pay the final and 
          legal judgment cannot escape a deposition officer's efforts 
          to collect on a final judgment by evading service of 
          collection related legal documents."  The DRA adds that: 

            ? court reporters cannot be analogized to run-of-the-mill 
            vendors used by attorneys.  This was confirmed just last 
            year.  In Serrano v. Stefan Merli Plastering Co. (2011) 
            52 Cal.4th 1018, 1021, the �California] Supreme Court 
            held that court reporters who take depositions are 







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            "ministerial officers of the court," meaning officers 
            charged with the non-discretionary, inherently judicial 
            duties.  They are extensions of the judge conducting a 
            legal proceeding. ? When lawyers book depositions with 
            reporters, they almost never use a P.O. box or mail drop 
            for their address. ? �A] reporter would be very unlikely 
            to do business with a lawyer that did provide such an 
            address at the outset �as it would be a warning sign 
            about payment of services and would pose difficulty for 
            ensuring receipt of delivered transcripts].  

            Infrequently, but frequently enough to be a stubborn 
            problem, a lawyer with a solid address at the time 
            deposition services are ordered will, while the invoice 
            is pending, or during informal efforts to collect 
            (letters and calls), close offices, move, and instead use 
            a mail drop or P.O. box.  Because the �State] Bar permits 
            attorneys to disclose only a P.O. box or other mail drop 
            as their address on its website, and because certain 
            collection-related legal documents cannot be effectuated 
            through the mail, licensed reporters who have a valid and 
            final court judgment against an attorney pursuant to the 
            law ? are often frustrated in effectuating the judgment ? 
            Using expensive process servers, deposition reporters too 
            often must expend considerable sums chasing down these 
            few attorneys adept at avoiding service to collect on 
            small claims judgments (under $7,500). ? 

            �A]s officers of the court themselves, attorneys have 
            unique responsibilities when it comes to obeying the law 
            and being accountable to other officers of the court.  
            The law therefore ought not make it easy for lawyers - 
            those schooled in the law - to evade legal service of 
            process.  

           Prior legislation  .  AB 1211 (Price, Chapter 115, Statutes 
          of 2007) passed the Senate (40-0) on September 6, 2011.


           ASSEMBLY FLOOR  :  73-0, 4/30/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Bonilla, Bradford, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Chesbro, 
            Conway, Cook, Dickinson, Donnelly, Eng, Feuer, Fletcher, 







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            Fong, Fuentes, Beth Gaines, Galgiani, Garrick, Gatto, 
            Gordon, Gorell, Grove, Hagman, Halderman, Hall, Harkey, 
            Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, Huffman, 
            Jeffries, Jones, Knight, Lara, Bonnie Lowenthal, Ma, 
            Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, 
            Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel 
            P�rez, Portantino, Silva, Skinner, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, 
            John A. P�rez
          NO VOTE RECORDED:  Blumenfield, Brownley, Cedillo, Davis, 
            Furutani, Logue, Smyth


          RJG:m  6/21/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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