LOOK OUT FOR THAT NEW STATUTE

Sterrett D. Harper, CAIIA President

Harper Claims Service, Burbank, CA

The full text of the new law.

In their infinite wisdom, the California State Assembly and Senate have

passed and the Governor has signed a bill which radically changes the

Statute of Limitations for California. Is this good or bad? It depends on

which side of the fence you are standing.

The text of the bill is some 12 pages long. BUT BEWARE! Not all of the

limitations have been changed. The two year time limit is "for assault,

battery, injury to, or the death of, an individual caused by the wrongful

act or neglect or another."

There are five different categories in the bill where the time limit is

still one year. These include libel, slander, false imprisonment, seduction

of a person below the age of legal consent, forged check against a bank, "or

against any person who boards or feeds an animal or fowl or who engages in

the practice of veterinary medicine ... resulting in injury or death to an

animal or fowl in the course of boarding or feeding ... or in the course of

the practice of veterinary medicine ..." There are other categories where

the Limitations is one year. These other categories don't usually involve

insurance.

"Terrorist victims" of September 11, 2001, have been "grandfathered" to the

two year statute. The rest of the bill does not appear to be retroactive.

Special attention needs to be paid by our attorneys, as the time limits for

Summary Judgments and any opposing motions of Summary Judgments have been

changed. The standard for Summary Judgments has been defined (or, maybe,

re-defined). It appears that it will more difficult for the Court to grant

Summary Judgments. The Court will need to specify the reasons for the

"triable issues ... of facts" either in writing or orally. The time to

appeal a Summary Judgment that is granted is now 20 days.

For the full text of the bill go to the full text 

The time limit changes mean a more difficult investigation on the first

notice of a claim as a lawsuit, as it may well be two years down the road

that the carrier or insured even knows of a claim. Conversely, it may mean

less legal expense on known claims, where the injury has not resolved in

less than a year. In either case, it means more work for the front line

adjuster. This brief overview does not replace, and you should not consider

this to be, legal advice from your attorney.