California 2015 2015-2016 Regular Session

California Assembly Bill AB408 Introduced / Bill

Filed 02/19/2015

 BILL NUMBER: AB 408INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Wagner FEBRUARY 19, 2015 An act to amend Section 3294 of the Civil Code, relating to civil damages. LEGISLATIVE COUNSEL'S DIGEST AB 408, as introduced, Wagner. Civil actions: damages. Existing law authorizes the plaintiff, in an action for the breach of an obligation not arising from contract, when it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice, to recover damages for the sake of example and by way of punishing the defendant in addition to the actual damages. This bill would make technical, nonsubstantive changes to this provision. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 3294 of the Civil Code is amended to read: 3294. (a) In an action for the breach of an obligation not arising from contract,  where   when  it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice, the plaintiff, in addition to the actual damages, may recover damages for the sake of example and by way of punishing the defendant. (b) An employer shall not be liable for damages pursuant to subdivision (a), based upon acts of an employee of the employer, unless the employer had advance knowledge of the unfitness of the employee and employed him or her with a conscious disregard of the rights or safety of others or authorized or ratified the wrongful conduct for which the damages are awarded or was personally guilty of oppression, fraud, or malice. With respect to a corporate employer, the advance knowledge and conscious disregard, authorization, ratification or act of oppression, fraud, or malice must be on the part of an officer, director, or managing agent of the corporation. (c) As used in this section, the following definitions shall apply: (1) "Malice" means conduct  which   that  is intended by the defendant to cause injury to the plaintiff or despicable conduct  which   that  is carried on by the defendant with a willful and conscious disregard of the rights or safety of others. (2) "Oppression" means despicable conduct that subjects a person to cruel and unjust hardship in conscious disregard of that person's rights. (3) "Fraud" means an intentional misrepresentation, deceit, or concealment of a material fact known to the defendant with the intention on the part of the defendant of thereby depriving a person of property or  a  legal  rights   right  or otherwise causing injury. (d) Damages may be recovered pursuant to this section in an action pursuant to Chapter 4 (commencing with Section 377.10) of Title 3 of Part 2 of the Code of Civil Procedure based upon a death  which   that  resulted from a homicide for which the defendant has been convicted of a felony, whether or not the decedent died instantly or survived the fatal injury for some period of time. The procedures for joinder and consolidation contained in Section 377.62 of the Code of Civil Procedure shall apply to prevent multiple recoveries of punitive or exemplary damages based upon the same wrongful act. (e) The amendments to this section made by Chapter 1498 of the Statutes of 1987 apply to all actions in which the initial trial has not commenced prior to January 1, 1988.