AB 859: Civil Procedure: recovery of defense costs.
This bill expands a provision that allows a defendant or cross-defendant to seek recovery of defense costs in a civil proceeding. The provision applies to a broader range of motions, including demurrers, in addition to motions for summary judgment, directed verdict, judgment in a nonjury trial, and nonsuit. If the court determines that the plaintiff did not bring the proceeding in good faith or with reasonable cause, the court will decide the reasonable and necessary defense costs and render judgment in favor of the opposing party. This change aims to provide greater protection for defendants and cross-defendants in civil cases, ensuring they can recover costs incurred in defending against frivolous or unjustified claims.
| Aug. 29, 2025 | In committee: Held under submission. |
| Jul. 07, 2025 | In committee: Referred to APPR. suspense file. |
| Jun. 25, 2025 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (June 24). Re-referred to Com. on APPR. |
| May. 07, 2025 | Referred to Coms. on JUD. and APPR. |
| Apr. 21, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 0. Page 1176.) |
| Introduced by Assembly Member Macedo |
February 19, 2025 |
LEGISLATIVE COUNSEL'S DIGEST
The people of the State of California do enact as follows:
SECTION 1.
Section 1038 of the Code of Civil Procedure is amended to read:1038.
(a) In any civil proceeding under the Government Claims Act (Division 3.6 (commencing with Section 810) of Title 1 of the Government Code) or for express or implied indemnity or for contribution in any civil action, the court, upon motion of the defendant or cross-defendant, shall, at the time of the granting of any objection by demurrer, summary judgment, motion for directed verdict, motion for judgment under Section 631.8, or any nonsuit dismissing the moving party other than the plaintiff, petitioner, cross-complainant, or intervenor, or at a later time set forth by rule of the Judicial Council adopted under Section 1034, determine whether or not the plaintiff, petitioner, cross-complainant, or intervenor brought the proceeding with reasonable cause and in the good faith belief that there was a justifiable controversy under the facts and law which warranted the filing of the complaint, petition, cross-complaint, or complaint or answer in intervention. If the court should determine that the proceeding was not brought in good faith and with reasonable cause, an additional issue shall be decided as to the defense costs reasonably and necessarily incurred by the party or parties opposing the proceeding, and the court shall render judgment in favor of that party in the amount of all reasonable and necessary defense costs, in addition to those costs normally awarded to the prevailing party. An award of defense costs under this section shall not be made except on notice contained in a party’s papers and an opportunity to be heard.