AB 2494, as amended, Cooley. Courts: frivolous actions or proceedings.
Existing law authorizes a trial court to order a party, the party’s attorney, or both to pay reasonable expenses, including attorney’s fees, incurred by another party as a result of bad-faith actions or tactics that are frivolous or solely intended to cause unnecessary delay, if the actions or tactics arise from a complaint filed, or a proceeding initiated, on or before December 31, 1994. In addition to the reasonable expenses award, existing law authorizes the court to assess punitive damages against the plaintiff on a determination that the plaintiff’s action was maintained by a person convicted of a felony against the person’s victim for injuries arising from the acts for which the person was convicted, and that the plaintiff is guilty of fraud, oppression, or malice in maintaining the action.
Existing law also requires every pleading, petition, written notice of motion, or other similar paper to be signed by the attorney of record, or if a party is unrepresented, by the party, thereby certifying to the best of the person’s knowledge, information, and belief that it is not being presented primarily for an improper purpose, as specified, and that the claims, defenses, and legal and factual contentions are warranted, as specified. Existing law authorizes a trial court to impose sanctions upon an attorney, law firm, or party that violates these provisions in a complaint, petition, or other paper filed on or after January 1, 1995.
This bill would delete the December 31, 1994, date limitation on a trial court’s authorization to award reasonable expenses incurred as a result of bad-faith actions or tactics that are frivolous or solely intended to cause unnecessary delay, thus making both of the provisions described above applicable commencing January 1, 2015. The bill would include in the definition of “actions or tactics” the filing and serving of an answer or other responsive pleading, and would exclude from that definition disclosures and discovery requests, responses, objections, and motions. The bill would require certain standards, conditions, and procedures to apply to sanctions imposed pursuant to its provisions. The bill would repeal these provisions on January 1, 2018.
The bill would also require the Judicial Council, on or before June 30, 2018, to submit a report to the Legislature examining the impact and effect of thisbegin delete act, including the number of specified motions
made, the number of those motions resulting in an award of sanctions, the nature and amount of any sanctions awarded, and whether or not this act has had a demonstrable effect on reducing the frequency and severity of bad faith actions or tactics that would not be subject to sanction under existing law.end deletebegin insert act.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 128.5 of the Code of Civil Procedure is
2amended to read:
(a) A trial court may order a party, the party’s attorney,
4or both to pay the reasonable expenses, including attorney’s fees,
5incurred by another party as a result of bad-faith actions or tactics
6that are frivolous or solely intended to cause unnecessary delay.
7This section also applies to judicial arbitration proceedings under
8Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part
93.
10(b) For purposes of this section:
P3 1(1) “Actions or tactics” include, but are not limited to, the
2making or opposing of motions or the filing and service of a
3complaint, cross-complaint, answer, or
other responsive pleading.
4The mere filing of a complaint without service thereof on an
5opposing party does not constitute “actions or tactics” for purposes
6of this section.
7(2) “Frivolous” means totally and completely without merit or
8for the sole purpose of harassing an opposing party.
9(c) Expenses pursuant to this section shall not be imposed except
10on notice contained in a party’s moving or responding papers or,
11on the court’s own motion, after notice and opportunity to be heard.
12An order imposing expenses shall be in writing and shall recite in
13detail the conduct or circumstances justifying the order.
14(d) In addition to any award pursuant to this section for conduct
15described in subdivision (a), the court may assess punitive
damages
16against the plaintiff on a determination by the court that the
17plaintiff’s action was an action maintained by a person convicted
18of a felony against the person’s victim, or the victim’s heirs,
19relatives, estate, or personal representative, for injuries arising
20from the acts for which the person was convicted of a felony, and
21that the plaintiff is guilty of fraud, oppression, or malice in
22maintaining the action.
23(e) This section shall not apply to disclosures and discovery
24requests, responses, objections, and motions.
25(f) Any sanctions imposed pursuant to this section shall be
26imposed consistently with the standards, conditions, and procedures
27set forth in subdivisions (c), (d), and (h) of Section 128.7.
28(g) The liability imposed by this section is in addition to any
29other liability imposed by law for acts or omissions within the
30purview of this section.
31(h) This section shall remain in effect only until January 1, 2018,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2018, deletes or extends that date.
Section 128.5 is added to the Code of Civil Procedure,
35to read:
(a) A trial court may order a party, the party’s attorney,
37or both to pay any reasonable expenses, including attorney’s fees,
38incurred by another party as a result of bad-faith actions or tactics
39that are frivolous or solely intended to cause unnecessary delay.
40This section also applies to judicial arbitration proceedings under
P4 1Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part
23.
3(b) For purposes of this section:
4(1) “Actions or tactics” include, but are not limited to, the
5making or opposing of motions or the filing and service of a
6complaint or cross-complaint only if the actions or tactics
arise
7from a complaint filed, or a proceeding initiated, on or before
8
December 31, 1994. The mere filing of a complaint without service
9thereof on an opposing party does not constitute “actions or tactics”
10for purposes of this section.
11(2) “Frivolous” means totally and completely without merit or
12for the sole purpose of harassing an opposing party.
13(c) Expenses pursuant to this section shall not be imposed except
14on notice contained in a party’s moving or responding papers, or
15the court’s own motion, after notice and opportunity to be heard.
16An order imposing expenses shall be in writing and shall recite in
17detail the conduct or circumstances justifying the order.
18(d) In addition to any award pursuant to this section for conduct
19described in subdivision (a), the court may assess
punitive damages
20against the plaintiff upon a determination by the court that the
21plaintiff’s action was an action maintained by a person convicted
22of a felony against the person’s victim, or the victim’s heirs,
23relatives, estate, or personal representative, for injuries arising
24from the acts for which the person was convicted of a felony, and
25that the plaintiff is guilty of fraud, oppression, or malice in
26maintaining the action.
27(e) The liability imposed by this section is in addition to any
28other liability imposed by law for acts or omissions within the
29purview of this section.
30(f) This section shall become operative on January 1, 2018.
On or before June 30, 2018, the Judicial Council shall
32submit a report to the Legislature examining the impact and effect
33of thisbegin delete act, including the number of motions made under both
34Sections 128.5 and 128.7 of the Code of Civil Procedure, the
35number of motions made pursuant to those sections resulting in
36an award of sanctions, the nature and amount of any sanctions
37awarded pursuant to those sections, and whether or not the
38enactment of Section 128.5 of the Code of Civil Procedure in this
39act has had a demonstrable effect on reducing the frequency and
P5 1severity of bad faith actions or tactics that would not be
subject to
2sanction under Section 128.7 of the Code of Civil Procedure.end delete
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