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HomeMy WebLinkAboutMINUTES - 06261990 - 1.33 -033 TO: BOARD OF SUPERVISORS sE -of Contra FROM: y� Costa Phil Batchelor, County Administrator 's Z• a County DATE: June 19, 1990 �osra ceuN _ SUBJECT: LEGISLATION: AB 3458 (Friedman) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMATION: Indicate that the Board of Supervisors continues to OPPOSE AB 3458 by Assemblyman Friedman which would prohibit any party from making a settlement offer which is conditioned on the plaintiffs waiving all or substantially all attorney' s fees which may be available pursuant to a private attorney general ' s statute. BACKGROUND: On June 19, 1990 the Board of Supervisors voted to oppose AB 3458. On June 6 , 1990 the bill was amended. Existing law does not prohibit a party to an action or proceeding from making a settlement offer conditioned on the counsel for an opposing party waiving all or substantially all attorney' s fees in a case in which there may be entitlement to attorney' s fees pursuant to a private attorney general statute (defined as those state and federal fee-shifting statutes which are designed to encourage private enforcement of constitutional and statutory rights and authorize the plaintiff if successful in a suit to recover attorney' s fees from the defendant, which is often a public agency) . Assemblyman Friedman has introduced AB 3458 which would establish such a prohibition. As amended June 6, 1990, AB 3458 would CONTINUED ON ATTACHMENTYpr_YES SIGNATURE: Z //�� . RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON Junee 2 6, 1990 APPROVED AS RECOMMENDED 'y OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. J CC: ATTESTED UN 2 6 1990 Please see Page 2. PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) > BY `� �i DEPUTY prohibit a party to an action or proceeding in which there may be an entitlement to attorney' s fees pursuant to a private attorney general statute from making or presenting a settlement offer which is conditioned on the counsel for an opposing party waiving reasonable attorney' s fees which may be appropriate. The bill provides that if there is a violation of this prohibition the court may approve the settlement offer but strike the fee waiver and order the party to pay opposing counsel' s reasonable fees. Before invoking the provisions of this bill, a party must take the following steps: 1. If the defendant is a public agency, the plaintiff must give written notice to the public agency of the complaint and the relief that is requested. This is designed to give the public agency an opportunity to avoid litigation. This notice must be given at least 30 days before the plaintiff files a complaint, unless good cause justifies a shorter time period. 2. If a party believes that a settlement offer has been made which violates this bill, that party has given written notice to opposing counsel and has made an effort to confer in good faith before bringing the request for relief to the court. The bill provides that it does not preclude negotiations between parties to determine reasonable attorney' s fees, nor does it preclude a party from making or presenting an offer of a lump sum or structured settlement to settle all claims including attorney' s fees. The bill also details those factors which constitute reasonable attorney' s fees and requires the parties and the court to consider them. Finally, the bill provides that where the parties are unable to negotiate a reasonable fee, either party may follow steps or procedures which are commonly available to resolve other monetary disputes, including requesting a settlement conference on the fee dispute and requesting the evaluation of the settlement judge on what would be a reasonable fee, . submitting the attorney fee dispute to nonbinding arbitration or submitting the attorney fee dispute to judicial determination. County Counsel recommends that the Board of Supervisors join CSAC and the League of California Cities in opposing AB 3458 on the basis that it will probably discourage the settlement of disputes to which the County is a party, encourage the filing of more litigation and consequently be more costly to counties. If both parties are willing to settle a dispute and a part of that settlement involves waiving all or substantially all of the claim for attorney' s fees, the parties should be entitled to agree to such a settlement offer. AB 3458 passed the Assembly Judiciary Committee May 23 , 1990 by a vote of 7: 3 and is currently on the Third Reading File on the Assembly Floor. cc: Assemblyman Terry Friedman County Administrator County Counsel Michael Corbett, Legislative Representative, CSAC Les Spahnn, SRJ. Jackson, Barish & Associates