SB 1334

Bill Subjects

Abstract

(1) Existing law provides that in an action for the breach of an obligation not arising from contract, if it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice, the plaintiff may recover, in addition to the actual damages, exemplary and punitive damages, except as specified. Existing law authorizes the court, for good cause, to grant the defendant a protective order requiring the plaintiff to produce evidence of a prima facie case of liability for exemplary and punitive damages prior to the introduction of evidence of the defendant's financial condition or certain profits. This bill would authorize a court to permit evidence of defendant's financial condition and certain profits under specified circumstances, including if the defendant transferred, as specified, assets that are recoverable under the Uniform Voidable Transactions Act, removed or concealed a majority of assets, or absconded. (2) Under existing law, evidence of a defendant's financial condition or certain profits is not subject to pretrial discovery by the plaintiff, unless the court finds, after a hearing, if the court deems a hearing to be necessary, that the plaintiff has shown a substantial probability of prevailing on the claim pursuant to the exemplary and punitive damages provision. This bill would authorize a court to enter an order permitting discovery of this evidence if the plaintiff has shown a substantial probability of prevailing on the claim pursuant to the exemplary and punitive damages provision, a claim filed under the Uniform Voidable Transactions Act, or any other equitable relief, as specified. This bill would also authorize a court to consider documentary evidence or oral testimony at a hearing to permit discovery of evidence otherwise prohibited by this provision and would authorize the court to expedite the hearing upon a showing of exigency.