20250AB__085999INT INTRODUCED 2025-02-19 2025 AB INT Introduced by Assembly Member Macedo LEAD_AUTHOR ASSEMBLY Macedo

An act to amend

Section of the Code of Civil Procedure, relating to civil procedure. civil procedure Civil Procedure: recovery of defense costs. Existing law permits a defendant or a cross-defendant in a civil proceeding under the Government Claims Act, or in any civil action for indemnity or contribution, to seek from the court, at the time of the granting of a motion for

summary judgment, directed verdict, motion for judgment in a nonjury trial, or nonsuit dismissing the moving party other than the plaintiff, petitioner, cross-complainant, or intervenor, to determine whether the plaintiff, petitioner, cross-complainant, or intervenor brought their proceeding in good faith and with reasonable cause. If the court determines that the proceeding was not brought in good faith or with reasonable cause, existing law requires the court to decide the reasonable and necessary defense costs incurred by party opposing the proceeding and to render judgment in favor of that party.

Existing law applies these provisions only if the defendant or cross-defendant has made a motion for

summary judgment, a motion for directed verdict, a motion for judgment in a nonjury trial, or nonsuit. This bill would expand the above provision to apply to a demurrer brought by a defendant or cross-defendant. MAJORITY NO NO NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1.

Section 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 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. (b) “Defense costs,” as used in this section, shall include reasonable attorney’s fees, expert witness fees, the expense of services of experts, advisers, and consultants in defense of the proceeding, and where reasonably and necessarily incurred in defending the proceeding. (

c) This

section shall be applicable only on motion made before the discharge of the jury or entry of judgment, and any party requesting the relief pursuant to this

section waives any right to seek damages for malicious prosecution. Failure to make the motion shall not be deemed a waiver of the right to pursue a malicious prosecution action. (

d) This

section shall only apply if the defendant or cross-defendant has made an objection by demurrer, motion for

summary judgment, judgment under

Section 631.8, directed verdict, or nonsuit and the demurrer or motion is granted.