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Senate Bill 820 (Thompson – 1991)

Chapter 916, Statutes of 1991

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Civil Code section 1714.10 was amended in 1991 following legislative approval of Senate Bill 820, which affected only this section.  (See Exhibit #1f)  This measure was introduced on March 7, 1991 by Senator Mike Thompson, as lead author.  (See Exhibits #1a and #1f)  Senate Bill 820 was supported by the California Trial Lawyers Association, the State Bar of California and the Lincoln Savings and Loan Bondholders Committee.  (See Exhibit #11, page 3)

Senate Bill 820 was first heard in the Senate Committee on Judiciary and was approved by that Committee and the Senate as a whole by mid-June of 1991 without amendment.  (See Exhibits #2 and #3)  In the Assembly, the bill was referred to the Committee on Judiciary which heard the bill in July and then sent it back to the Assembly Floor with proposed author’s amendments, with a referral back to the Committee.  (See Exhibits #1b, #2, and #7) 

On August 19, 1991, the Assembly Committee on Judiciary approved Senate Bill 820 with amendments and sent it back to the Assembly floor.  (See Exhibits #1b and #2)  Two additional amendments were made to the bill by the Assembly, on August 20 and September 4, 1991.  (See Exhibits #1c, #1d, and #2)  The Assembly approved the measure, returned it to the Senate, and the Senate accepted the Assembly’s amendments.  (See Exhibit #2)  Soon thereafter, Senate Bill 820 was signed by Governor Pete Wilson and designated as Chapter 916 of the Statutes of 1991.  (See Exhibits #1f and #2)

The Unfinished Business analysis of Senate Bill 916 as last amended that was prepared by the Office of Senate Floor Analyses described this bill as follows:

DIGEST:  This bill would limit the pleading hurdle for conspiracy claims against attorneys to cases involving statutory bad faith insurance claims.
(See Exhibit #11, page 1)