Bill Text: CA SB1334 | 2019-2020 | Regular Session | Introduced
Bill Title: Civil damages: protective order.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-03-12 - Referred to Com. on JUD. [SB1334 Detail]
Download: California-2019-SB1334-Introduced.html
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Senate Bill
No. 1334
| Introduced by Senator Chang |
February 21, 2020 |
An act to amend Section 3295 of the Civil Code, relating to civil damages.
LEGISLATIVE COUNSEL'S DIGEST
SB 1334, as introduced, Chang.
Civil damages: protective order.
(1) Existing law provides that in an action for the breach of an obligation not arising from contract, if it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice, the plaintiff may recover, in addition to the actual damages, exemplary and punitive damages, except as specified. Existing law authorizes the court, for good cause, to grant the defendant a protective order requiring the plaintiff to produce evidence of a prima facie case of liability for exemplary and punitive damages prior to the introduction of evidence of the defendant’s financial condition or certain profits.
This bill would authorize a court to permit evidence of defendant’s financial condition and certain profits under specified circumstances, including if the defendant transferred, as specified, assets that are recoverable
under the Uniform Voidable Transactions Act, removed or concealed a majority of assets, or absconded.
(2) Under existing law, evidence of a defendant’s financial condition or certain profits is not subject to pretrial discovery by the plaintiff, unless the court finds, after a hearing, if the court deems a hearing to be necessary, that the plaintiff has shown a substantial probability of prevailing on the claim pursuant to the exemplary and punitive damages provision.
This bill would authorize a court to enter an order permitting discovery of this evidence if the plaintiff has shown a substantial probability of prevailing on the claim pursuant to the exemplary and punitive damages provision, a claim filed under the Uniform Voidable Transactions Act, or any other equitable relief, as specified. This bill would also authorize a court to consider documentary evidence or oral testimony at a hearing to permit discovery of
evidence otherwise prohibited by this provision and would authorize the court to expedite the hearing upon a showing of exigency.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 3295 of the Civil Code is amended to read:3295.
(a)(1) The profits the defendant has gained by virtue of the wrongful course of conduct of the nature and type shown by the evidence.
(2) The financial condition of the defendant.
(b) Nothing in this section shall prohibit the introduction of prima facie evidence to establish a case for damages pursuant to Section 3294.
(c) No pretrial (1) Pretrial discovery by the plaintiff shall not
be permitted with respect to the evidence referred to in paragraphs (1) and (2) of subdivision (a) unless the court enters an order permitting such discovery pursuant to this subdivision. However, subdivision at any time because any of the following apply:
(A) The defendant has transferred, caused to be transferred, or threatened to transfer any assets or proceeds thereof that are recoverable under Chapter 1 (commencing with Section 3439) of Title 2 of Part 2 of Division 4.
(B) The defendant’s creditor would be entitled to an ex parte writ of attachment under paragraph (1) of subdivision (b) of
Section 485.010 of the Code of Civil Procedure.
(C) The defendant has absconded.
(D) The defendant has removed or concealed a majority of assets.
(E) The defendant is domiciled offshore without any intention of returning.
(2) However, the plaintiff may subpoena documents or witnesses to be available at the trial for the purpose of establishing the profits or financial condition referred to in subdivision (a), and the defendant may be required to identify documents in the defendant’s possession which
that are relevant and admissible for that purpose and the witnesses employed by or related to the defendant who would be most competent to testify to those facts. Upon motion by the plaintiff supported by appropriate affidavits and filed at any time after a hearing, if the court deems a hearing to be necessary, the court may at any time enter an order permitting the discovery otherwise prohibited by this subdivision if the court finds, on the basis of the supporting and opposing affidavits presented, that the plaintiff has established that there is a substantial probability that the plaintiff will prevail on the claim pursuant to Section 3294. Such 3294, or either of the following:
(A) A claim under Chapter 1 (commencing with Section 3439) of Title 2 of Part 2 of Division 4.
(B) Any other equitable relief, including, but not limited to, relief under Chapter 3 (commencing with Section 525) or Chapter 5 (commencing with Section 564) of Title 7 of Part 2 of the Code of Civil Procedure.
(3) An order entered pursuant to paragraph (2) shall not be considered to be a determination on the
merits of the claim or any defense thereto and shall not be given in evidence or referred to at the trial. trial, except in the prosecution of an action under Chapter 1 (commencing with Section 3439) of Title 2 of Part 2 of Division 4.
(4) A court may expedite the hearing described in paragraph (2) upon a showing of exigency. The court may consider documentary evidence or oral testimony at the hearing described in paragraph (2) upon a showing of good cause.
(5) Notwithstanding any right of discovery under this subdivision, a plaintiff shall be entitled to file any action under Chapter 1 (commencing with Section
3439) of Title 2 of Part 2 of Division 4 at any time or otherwise allowed by law.
(d) The court shall, on application of any defendant, preclude the admission of evidence of that defendant’s profits or financial condition until after the trier of fact returns a verdict for plaintiff awarding actual damages and finds that a defendant is guilty of malice, oppression, or fraud in accordance with Section 3294. Evidence of profit and financial condition shall be admissible only as to the defendant or defendants found to be liable to the plaintiff and to be guilty of malice, oppression, or fraud. Evidence of profit and financial condition shall be presented to the same trier of fact that found for the plaintiff and found one or more defendants guilty of malice, oppression, or fraud.
(e) No A
claim for exemplary damages shall
not state an amount or amounts.
(f) The amendments to this section made by Senate Bill No. 241 of the 1987–88 Regular Session apply to all actions in which the initial trial has not commenced prior to January 1, 1988.
