Tuesday, November 6, 2012

REDUCTION OF SERVICES IN CALIFORNIA COURTS

Drastic budget cuts instituted in June, 2012, have had an immediate effect on pending and newly filed cases throughout California. San Diego Presiding Judge Robert Trentacosta warned that “the cuts envisioned by our budget reduction plan will affect every judge, court employee, and ultimately the litigants, court users and citizens”.

Significant changes include:

1.         Increased Fees and Costs

            As of July 10, 2012, there is a statewide increase in fees. First appearance fees have increased from $395.00 to $435.00 in unlimited jurisdiction ( and to $450.00 in Riverside and San Francisco) and to $370.00 in limited jurisdiction. The motion fee has been raised from $40.00 to $60.00. (Motions for summary judgment remain $500.00 per motion). The cost for facsimile filing has risen from between twenty and forty cents per page to seventy-five (75) cents per page.

2.         Closed Courtrooms and Courthouses

            Fifty-six (56) courtrooms in Los Angeles have been closed including twenty-four (24) civil courts. Other courtrooms will have significantly reduced hours.

            In Fresno, all seven branches of the Fresno County Superior Court have been closed leaving one courthouse to service the entire region. San Bernardino is currently considering closing court houses in outlying areas such as Barstow. Throughout California, courthouses are facing closures or reduced hours.

3.         Court Reporters are No Longer Guaranteed

            Effective as of May 15, 2012, the Los Angeles Superior Court suspended Local Rule 2.21 and Appendix C, which provided court reporters for civil matters. court reporters are no longer available for general jurisdiction morning calendar matters or civil trials. A party may hire a court reporter from a court list, however, those reporters are only available 2 ½ days per week. A party may not hire its own court reporter who is not on the list without obtaining a stipulation from the court.

4.     Jury Fees Must be Submitted Early and Are Non-Refundable

        Code of Civil Procedure § 631 pertaining to payment of jury fees has been amended. Now, in order to secure a jury trial, each party must pay an advanced jury fee of $150.00 either prior to the initial case management conference in the matter or, if no case management conference was scheduled, within 365 days after the filing of the initial complaint. If the party has not appeared within the 365 days, the fees are due 25 days before trial. Although the Judge has some discretion to waive this rule, the intent is that any party who does not comply waives his or her right to a jury trial.

            The $150.00 must be paid by each party who wishes to secure a jury and the amount is nonrefundable. If there are multiple plaintiffs or defendants, each person must pay the $150.00. The $150.00 is no longer credited to jury fees incurred on the second day of trial.

            This rule is retroactive and applies to cases filed before the rule took effect on June 28, 2012. If a case is pending and it is not yet 365 days since the initial complaint was filed, the parties must pay the fees.

5.         Elimination of Judicial Settlement Programs

            The San Francisco Superior court has ended its Mandatory Settlement Conference program due to shortage of personnel and is starting a program run by volunteer attorneys. Although Los Angeles is continuing its mediation program, other regions are likely to eliminate or severely curtail their free programs.

6.         Effect of Cuts on Pending Litigation

            As a result of budget cuts, litigation costs have vastly increased. At a minimum, parties must pay higher filing fees, motion fees, and costs for court calls and facsimiles, as well as the non-refundable $150.00 jury fee per party. Additional costs will arise from the loss of free mediation programs, and the need to pay for court reporters and translators that were previously provided by the court.

            Clients should anticipate that it will take longer for civil cases to reach trial, and that it will become difficult to obtain hearing dates for motions. Due to staff shortages, clerks are scarce, and documents are taking longer than usual to process which is delaying settlement and dismissal of cases. Judges are trying to clear their courtrooms by ordering litigants to attend multiple mediation sessions, or encouraging them to try their cases before retired judges.

            Overall, insurers and clients should anticipate a pattern of delays and increased costs as additional cuts are implemented.