Bill Text: CA AB2740 | 2009-2010 | Regular Session | Amended

California Assembly Bill 2740 (Prior Session Legislation)

Bill Title: Civil actions: damages.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-05-04 - In committee: Set first hearing. Failed passage. Reconsideration granted. [AB2740 Detail]

Download: California-2009-AB2740-Amended.html

BILL NUMBER: AB 2740	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 25, 2010

INTRODUCED BY   Assembly Member Niello

                        FEBRUARY 19, 2010

    An act relating to military benefits.   An
act to amend Section 3294 of, and to add Section 3333.8 to, the Civil
Code, relating to civil damages. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2740, as amended, Niello.  National Guard: veterans:
education benefits.   Civil actions: damages.  

   Existing law authorizes the plaintiff, in an action for the breach
of an obligation not arising from contract, where it is proven by
clear and convincing evidence that the defendant has been guilty of
oppression, fraud, or malice, to recover damages for the sake of
example and by way of punishing the defendant in addition to the
actual damages.  
   This bill would limit punitive damages in those actions to 3 times
the award for compensatory damages.  
   This bill would also provide, in a case involving injury or harm
allegedly caused by a product, that the manufacturer, distributor, or
seller of the product shall not be guilty of oppression, fraud, or
malice if, at the time of manufacture, distribution, or sale, the
product, or the aspect, component, warning, or absence of warning
contained in or accompanying the product that allegedly caused the
injury or harm, was either approved by, or in material compliance
with, a statute or the standards, rules, regulations, requirements,
or specifications of, a federal or state agency responsible for
regulating, evaluating, or approving the product, except as
specified.  
   Existing law also provides that the measure of damages for the
breach of an obligation not arising from contract is the amount that
will compensate for all the detriment proximately caused.  
   This bill would provide that in any action for injury based on
negligence, the plaintiff shall be entitled to recover noneconomic
losses, as provided, not to exceed $250,000.  
   Existing law provides certain benefits for qualifying members of
the California National Guard.  
   This bill would state the intent of the Legislature to enact
legislation to establish an education assistance program for
qualified veterans of the California National Guard in order to
provide California's soldiers with educational opportunities after
serving in the military. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 3294 of the   Civil
Code   is amended to read: 
   3294.  (a) In an action for the breach of an obligation not
arising from contract, where it is proven by clear and convincing
evidence that the defendant has been guilty of oppression, fraud, or
malice, the plaintiff, in addition to the actual damages, may recover
damages for the sake of example and by way of punishing the
defendant.  However, the amount of punitive damages shall not
exceed three times the award for compensatory damages in any action.

   (b) An employer shall not be liable for damages pursuant to
subdivision (a), based upon acts of an employee of the employer,
unless the employer had advance knowledge of the unfitness of the
employee and employed him or her with a conscious disregard of the
rights or safety of others or authorized or ratified the wrongful
conduct for which the damages are awarded or was personally guilty of
oppression, fraud, or malice. With respect to a corporate employer,
the advance knowledge and conscious disregard, authorization,
ratification or act of oppression, fraud, or malice must be on the
part of an officer, director, or managing agent of the corporation.
   (c) As used in this section, the following definitions shall
apply:
   (1) "Malice" means conduct which is intended by the defendant to
cause injury to the plaintiff or despicable conduct which is carried
on by the defendant with a willful and conscious disregard of the
rights or safety of others.
   (2) "Oppression" means despicable conduct that subjects a person
to cruel and unjust hardship in conscious disregard of that person's
rights.
   (3) "Fraud" means an intentional misrepresentation, deceit, or
concealment of a material fact known to the defendant with the
intention on the part of the defendant of thereby depriving a person
of property or legal rights or otherwise causing injury.
   (d) Damages may be recovered pursuant to this section in an action
pursuant to Chapter 4 (commencing with Section 377.10) of Title 3 of
Part 2 of the Code of Civil Procedure based upon a death which
resulted from a homicide for which the defendant has been convicted
of a felony, whether or not the decedent died instantly or survived
the fatal injury for some period of time. The procedures for joinder
and consolidation contained in Section 377.62 of the Code of Civil
Procedure shall apply to prevent multiple recoveries of punitive or
exemplary damages based upon the same wrongful act. 
   (e) (1) In a case involving injury or harm allegedly caused by a
product, the manufacturer, distributor, or seller of the product
shall not be guilty of oppression, fraud, or malice as defined in
this section if, at the time of manufacture, distribution, or sale,
the product or the aspect, component, warning, or absence of warning
contained in or accompanying the product that allegedly caused the
injury or harm either was approved by, or was in material compliance
with a statute or the standards, rules, regulations, requirements, or
specifications of, a federal or state agency responsible for
regulating, evaluating, or approving the product.  
   (2) This subdivision shall not apply if it is proven by clear and
convincing evidence that the defendant intentionally withheld or
intentionally misrepresented information that the defendant was
required to submit to the agency at any time and the withholding or
misrepresentation of that information was causally related to the
injury or harm alleged.  
   (3) This subdivision shall apply to every case pending on or after
the date of enactment regardless of when the case was filed. 

   (e) 
    (f)  The amendments to this section made by Chapter 1498
of the Statutes of 1987 apply to all actions in which the initial
trial has not commenced prior to January 1, 1988.
   SEC. 2.    Section 3333.8 is added to the  
Civil Code   , to read:  
   3333.8.  (a) In any action for injury based on negligence, the
injured plaintiff shall be entitled to recover noneconomic losses to
compensate for pain, suffering, inconvenience, physical impairment,
disfigurement, and other nonpecuniary damages.
   (b) The amount of damages for noneconomic losses shall not exceed
two hundred fifty thousand dollars ($250,000) in any action. 

  SECTION 1.    It is the intent of the Legislature
to enact legislation establishing an education assistance program for
qualified veterans of the California National Guard in order to
provide California's soldiers with educational opportunities after
serving in the military.