A new law expanding damages that can be collected in survival actions – raising policy concerns about the impact on taxpayers, public agencies, and the civil justice system – also was amended to include oversight and a sunset date.
The legislation, pushed by the Consumer Attorneys of California (CAOC), goes into effect for future actions on Jan. 1.
“We don't yet know the full impact SB 447 will have, but as originally proposed, SB 447 would have been a permanent change to the law,” Kyla Christoffersen Powell, president and CEO of the Civil Justice Association of California (CJAC), said in an email response to the Northern California Record. “Thanks to the willingness of Senator John Laird to amend his bill and work with the business community, the bill will sunset after four years.”
Before SB 447, next of kin or decedent’s representatives hadn’t collected benefits for prior pain and suffering in a survival action.
The Senate Analysis urged stakeholder consideration before enacting the change to the civil justice system.
Businesses cite high taxes as a major reason to consider other states instead of staying in California, which is also losing a Congressional seat due to population decline.
“CJAC and a large business coalition were able to obtain amendments to the bill to require tracking of cases filed and damages awards under SB 447,” Powell said. “As a result of these and other narrowing amendments, CJAC removed its initial opposition to the bill.”
Powell noted that the Judicial Council of California will have to compile a report of the filings and damages data under SB 447 and transmit it to the Legislature by January 1, 2025.
“This will facilitate evaluation of its effects on California's courts, consumers and businesses,” Powell said. “This is important because we expect the plaintiffs attorneys’ lobby to seek legislation in 2025 to extend the bill’s sunset.”
The California Employment Lawyers Association joined CAOC in Senate Analysis support of the measure.
“CJAC generally opposes expansions of civil liability damages, in particular subjective damages like pain and suffering, as such expansions exacerbate California’s already imbalanced civil justice system,” Powell said. “Additionally, a primary driver for plaintiffs’ attorneys seeking damages expansions in the laws is to pump up the fees they can collect, which are already exorbitant.”
CJAC has proposed voter initiatives for the November 2022 ballot to address consumer protection in civil actions, as well as attorneys’ fees.