Amended
IN
Senate
May 06, 2003 |
Amended
IN
Senate
May 12, 2003 |
Amended
IN
Senate
May 15, 2003 |
Amended
IN
Assembly
July 01, 2003 |
Amended
IN
Assembly
July 16, 2003 |
Amended
IN
Assembly
August 28, 2003 |
Amended
IN
Assembly
September 05, 2003 |
Introduced by
Senator
Escutia (Principal Coauthor(s): Assembly Member Corbett) |
February 04, 2003 |
(a)If the court finds that a defendant has engaged in an unlawful, unfair, or fraudulent business act or practice in violation of this chapter and that the defendant has derived ill gotten gains from that act or practice, the court may order any appropriate equitable relief to remedy the act or practice. In addition, a court shall assure that any monetary relief in excess of the amounts paid to the plaintiffs or to affected members of the general public by a defendant, if any, shall be distributed as a cy pres award or fluid recovery pursuant to this section to provide substantial benefit, pursuant to paragraph (2) of subdivision (b), to Californians.
(b)(1)Prior to the entry of any judgment or order for relief pursuant to this section, the court shall determine the total amount of monetary relief payable as the result of the defendant’s unlawful, unfair, or fraudulent business act or practice. The court shall set a date when the parties shall report to the court the total amount actually paid to those members of the public identified and located as being affected by the act or practice, if any.
(2)After the report is received, the court shall amend the judgment to direct the defendant to pay the remaining balance of the unpaid ill gotten gains to a nonprofit organization or foundation to support projects consistent with the objectives and purposes of the underlying action or to promote justice for all; or to a court-approved fund appropriate to the circumstances of the particular action; or, if neither of those options is available, to the State of California.
(3)For purposes of this section only, and in connection with a private action or private cause of action brought on behalf of the general public under this chapter, a court shall not order any monetary relief in excess of monetary restitution against a small business. For this purpose, a “small business” is a business that has fewer than 10 employees or independent contractors and average annual gross receipts of less than five hundred thousand dollars ($500,000). Nothing in this paragraph is intended to limit the ability of the court, in the exercise of its equitable powers, to issue injunctive relief or order restitution against a small business. This paragraph does not apply to any cause of action that alleges a violation of any law or regulation affecting civil rights, wages, or working hours or conditions.
(c)(1)A private plaintiff who is seeking cy pres or fluid recovery shall at least 30 days before the date of the final report and judgment by the court, as described in paragraph (2) of subdivision (b), submit to the Attorney General a copy, including a copy in electronic form, of the proposed terms of the judgment, including all stipulations and associated agreements between the parties, together with the notice of the time and place set for hearing on the entry of the judgment. If the proposed judgment is materially amended before entry of judgment, the private plaintiff shall promptly provide the Attorney General with an amended copy.
(2)The Attorney General shall make the proposed terms of the judgment publicly available on the Internet for a period not to exceed 45 days from the date of its receipt of the judgment. The posting of information required of the Attorney General pursuant to this subdivision is administrative in nature, and imposes no other duty on that office.
(3)The receipt of information pursuant to paragraph (1) does not constitute notice affecting the right of the Attorney General to take any other action within its authority at any time.
(d)Notwithstanding any other provision of law, Section 17208 applies to this section.
(a)All persons may be joined in one action as defendants if there is asserted against them:
(1)Any right to relief jointly, severally, or in the alternative, in respect of or arising out of the same transaction, occurrence, or series of transactions or occurrences and if any question of law or fact common to all these persons will arise in the action; or
(2)A claim, right, or interest adverse to them in the property or controversy which is the subject of the action.
(b)It is not necessary that each defendant be interested as to every cause of action or as to all relief prayed for. Judgment may be given against one or more defendants according to their respective liabilities.
(c)Where the plaintiff is in doubt as to the person from whom he or she is entitled to redress, he or she may join two or more defendants, with the intent that the question as to which, if any, of the defendants is liable, and to what extent, may be determined between the parties.
(d)The fact that individual defendants who are not associates or affiliates of each other are engaged in the same or similar types of businesses and are alleged to have violated the same or similar laws or regulations shall not, in itself, constitute a basis for joinder under this chapter.
(a)A person bringing a private action for relief on behalf of the general public pursuant to Section 17204 shall serve on each defendant at the time of service of a demand letter or a complaint, a notice containing the following statement in boldface type:
“IMPORTANT CONSUMER INFORMATION: You are receiving this notice because at least one of the claims against you alleges an unlawful, unfair, or fraudulent business act or practice under the California Business and Professions Code. YOU HAVE IMPORTANT LEGAL RIGHTS, and you may wish to consult an attorney promptly to get helpful legal advice in responding to this notice.
In addition, you may wish to contact your local District Attorney’s Office, the Attorney General’s Office, or the local bar association in your county, or all of these offices, for legal information about this type of lawsuit.
It also is important that you know that you are not required to pay any money at this time. Moreover, RECEIPT OF THIS NOTICE DOES NOT NECESSARILY MEAN YOU WILL BE FOUND LIABLE FOR ANYTHING. Your best protection is to seek out legal advice before agreeing to anything.
Once you have an attorney representing you, the attorney for the plaintiff in this case is prohibited from contacting you unless your attorney is present or your attorney has given the plaintiff’s attorney permission to contact you. If the plaintiff’s attorney does try to contact you personally, you should immediately report the contact to your attorney. Attorneys are not allowed to threaten to report you to a law enforcement or regulatory agency if you refuse to settle a claim. If the plaintiff’s attorney does so, you should notify your attorney or the State Bar of California immediately.
If you choose not to hire an attorney, you may obtain additional information about how to represent yourself on the California Courts Web site, www.courtinfo.ca.gov.
If you agree to pay any attorney’s fees to the plaintiff in this case, a court must review these fees, pursuant to subdivision (a) of Section 17204.6 of the California Business and Professions Code.”
(b)The notice in subdivision (a) shall be in at least 14-point boldface type and shall not contain any other statements except for those required in subdivision (a).
(c)An attorney who fails to comply with this section may be subject to disciplinary action by the State Bar of California.