Changes to the California Code of Civil Procedure You Should Know About NOW

The California legislature has recently implemented important changes to the California Code of Civil Procedure (“CCP”) that will take effect on January 1, 2016. These changes will affect all aspects of the litigation process, from the filing of initial pleadings to trial and settlement. It is important that litigants and counsel be prepared for these changes now.

Demurrers

On October 2, 2015, California Governor Jerry Brown signed Senate Bill 383, which is designed to avoid lengthy demurrer proceedings and ease court congestion. The bill adds CCP section 430.41 and amends CCP sections 472 and 472(a). The new CCP section 430.41 requires parties to “meet and confer” before a demurrer is filed. The meet and confer must include the exchange of legal authority supporting each party’s position. If the parties cannot complete a meet and confer 5 days before a responsive pleading is due, the demurring party can obtain an automatic 30-day extension by filling a declaration with the court. The statute further provides that a determination by the court that the meet and confer process was insufficient shall not be grounds to overrule or sustain a demurrer.

CCP section 430.41 also imposes a limit on the number of amended complaints that can be filed. Under the current demurrer statutes, there is no such limitation. Now, a complaint cannot be amended more than three times, absent an offer to the trial court that there is a reasonable possibility the defect can be cured. CCP section 430.41 further requires a demurring party to demur to all deficient or improper causes of action in the first demurrer. A demurring party cannot demur to a cause of action in an amended complaint that could have been demurred to in the prior demurrer to an earlier version of the complaint. CCP section 472(a) is amended to reflect the addition of CCP section 430.41.

Additionally, Senate Bill 383 amends CCP section 472 to prevent amended complaints from being filed on the eve of a demurrer hearing. An amended complaint must now be filed no later than the date an opposition to the demurrer is due. An amended pleading can only be filed after that date pursuant to the stipulation of the parties.

In short, Senate Bill 383 will limit the number of amended complaints and demurrers that can be filed. It will also save counsel and the courts from having to prepare for demurrer hearings, only to have them rendered moot by amended complaints filed on the eve of the hearings. For the full language of CCP sections 430.10, and amended CCP sections 472 and 472(a) see:
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB383

Deposition Notices

Assembly Bill 1197 amends CCP section 2025.220 relating to deposition notices. CCP section 2025.220(a)(8)(A) now provides that if a noticing party is aware of the existence of a contract between the noticing party (or a third party financing all or part of the action) and the court reporter (or the entity providing the court reporter), the existence of the contract must be disclosed. There is no requirement that the noticing party must seek out the existence or non-existence of such a contract. Additionally, CCP section 2025.220(a)(8)(B) now requires the noticing party to disclose if the attorney was directed to use a particular court reporter or entity to provide the deposition services (e.g., an insurance company). The statute is silent on the consequences of a failure to disclose. For the full language of amended CCP section 2025.220 see:
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160AB1197

Offers to Compromise

Assembly Bill 1141 amends CCP section 998 to provide that parties are only able to recover expert witness costs incurred after a section 998 offer to compromise is made, and not pre-offer costs. For the full language of amended CCP section 998 see:
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB1141

Motions for Summary Judgment

Assembly Bill 1141 also addresses motions for summary judgment and adjudication. The bill adds CCP section 437c(t) to allow a party to file a motion for summary adjudication that does not completely dispose of a cause of action, affirmative defense, or issue of duty under specific circumstances: if the parties whose claims or defenses are put at issue by the motion jointly stipulate as to the issue(s) to be adjudicated, and declare that a ruling on the motion would further the interest of judicial economy. The court has discretion to summarily adjudicate that issue. For the full language of CCP section 437c(t) see:
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB1141

Moreover, Senate Bill 470 amends CCP section 437c to provide that a court is only required to rule on objections to evidence in a motion for summary judgment or adjudication which the court deems material to disposition of the motion. Evidentiary objections not ruled upon by the court are preserved for appeal. For the full language of amended CCP section 437c see:
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB470

Expedited Jury Trials

Assembly Bill 555 adds CCP section 630.20 to the Code of Civil Procedure. CCP section 630.20 makes expedited jury trials mandatory in limited civil cases with certain exceptions. Parties may opt out of mandatory expedited jury trials if: (1) punitive damages are sought; (2) the alleged damages exceed insurance policy limits; (3) an insurer is defending under a reservation of rights; (4) the case involves a claim reportable to a governmental entity; (5) a cause of action involves moral turpitude that may affect an individual’s professional license; (6) a cause of action involves claims of intentional conduct; or (7) attorney’s fees are sought in a case that is not based on a breach of contract.

Additionally, CCP section 630.20 expands the time for mandatory expedited jury trials to 5 hours per side, including voir dire. CCP section 630.20 also allows for a judgment in a mandatory expedited jury trial to be appealed. For the full language of CCP section 630.20 see:
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160AB555

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December 18, 2015