California's New Civil Litigation Laws for 2023

In late 2022, Governor Gavin Newsom signed into law two bills affecting civil law and procedures in the California courts. The two bills are Assembly Bill (“AB”) 2961 and Senate Bill (“SB”) 1200 which deal with Electronic Filing & Service and Enforcement of Judgements. Let’s review the important changes coming from these bills that became active law on January 1, 2023.

2 New Laws in Civil Litigation

1. Assembly Bill 2961 | Electronic Filing and Service

Code of Civil Procedure section 1010.6 previously provided that the service of documents in an action filed with the Court by electronic means, pursuant to the rules adopted by the Judicial Council, may be served electronically if: (1) a party agreed to accept electronic service; or (2) electronic service was ordered by the Court.  Courts were also authorized to electronically serve any Court issued document not required to be personally served on a party if that party has agreed or consented to accept electronic service, having the same legal effect as service by mail, except as specified. Lastly, any document that the Court is required to transmit, deliver, or serve to any party or person who has agreed or consented to accept electronic service will have the same legal effect as described above.

AB 2961 deletes this language and authorizes a court to “order electronic service on a person represented by counsel who has appeared in an action or proceeding.” AB 2961 also requires that “a person represented by counsel shall, upon the request of any person who has appeared in an action or proceeding and who provides an electronic service address, electronically serve the requesting person with any notice or document that may be served by mail, express mail, overnight delivery, or facsimile transmission.” This provision eliminates the requirement for consent between both parties to accept electronic service. For unrepresented persons in civil actions, an “unrepresented party may consent to receive electronic service.” Additionally, on and after July 1, 2024, AB 2961 would require “a court to electronically transmit to a person subject to mandatory electronic service any document issued by the court that the court is required to transmit, deliver, or serve.”

Code of Civil Procedure section 1010.6 also previously required “a court to permit a party or attorney to file an application for waiver of court fees and costs” as part of the process involving the electronic filing of a document. In turn, the section required the court, an electronic filing service provider, or an electronic filing manager to waive any fees charged to a party if the party has been granted a waiver. AB 2961 adds an additional requirement for the courts, an electronic filing service provider, or an electronic filing manager to waive any fees charged to the party’s attorney if the party has been granted a waiver, or if the party is indigent or being represented by the public defender or court-appointed counsel.

AB 2961 cleans up Code of Civil Procedure section 1010.6 and makes it clear for when electronic service is mandatory and when it is permissive. The bill also provides more clarity as to when electronic filing and service fees are waived.  

SB 1200: Enforcement of Judgments

There are major changes to the renewal and interests of certain judgments. In California, a money judgment was subject to a ten (10) year statute of limitations; after ten years, the judgment terminates and any lien or liability for enforcement is extinguished even by an independent action. (Code of Civil Procedure §683.20.) SB 1200 changes the statute of limitation for certain judgments by allowing a judgment creditor to renew the period of enforceability in cases of a money judgment of under $200,000 that remains unsatisfied for a claim relating to medical expenses and for a money judgment of under $50,000 that remains unsatisfied for a claim related to personal debt only once for a period of five (5) years from the date the application is filed.

The rate for interests has also changed for certain money judgments. Judgment creditors were entitled to recover interest on the principal amount of the judgment that remains unsatisfied at a rate of 10% per annum. SB 1200 decreases the interest in judgments entered on or after January 1, 2023, or where an application for renewal of a judgment is filed on or after January 1, 2023, to a rate of 5% per annum for money judgments under $200,000 that remain unsatisfied for a claim related to medical expenses and for money judgments under $50,000 that remain unsatisfied for a claim related to personal debt.

With respect to challenging judgments, Code of Civil Procedure section 683.160 and 683.170 previously provided that a judgment debtor may move to vacate or modify the renewal (serving notice of the motion on the judgment creditor personally or by mail) within thirty (30) days from the date that notice of the renewal application is filed with the court clerk. SB 1200 now increases the number of days after service of the notice of renewal that a judgment debtor may make a motion to vacate or modify a renewal to sixty (60) days.  

By: Myla Sarmiento, Attorney