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ASSEMBLY BILL 570 (MCALISTER – 1977)

CHAPTER 198, STATUTES OF 1977

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Numerous sections from the Civil Code, the Education Code, the Government Code and the Streets and Highways Code relating to legal obligations, including liquidated damages, were affected in 1977 following legislative approval of Assembly Bill 570.  (See Exhibit A, #1b)  Assembly member Alister McAlister introduced Assembly Bill 570 on February 18, 1977 at the request of the California Law Revision Commission [hereinafter referred to as “the Commission” or “CLRC”].  (See Exhibit A, #1a, #3 and #10, documents PE-1, PE-4 and PE‑5) 

While before the Legislature, Assembly Bill 570 was heard in the Assembly Committee on Judiciary and the Senate Committee on Judiciary where policy issues raised by the bill were considered.  (See Exhibit A, #3 and #6)  Assembly Bill 570 was never amended in either House.  (See Exhibit A, #2)  Following legislative approval, the measure was approved by Governor Edmund G. Brown, Jr., and became law as Chapter 198 of the Statutes of 1977.  (See Exhibit A, #1b and #2)

Assembly member McAlister summarized Assembly Bill 570 in his letter to the Governor urging his approval of the legislation, stating the following:

            This bill would make liquidated damages provisions in nonconsumer contracts more readily enforceable and would provide specific rules governing liquidated damages where the buyer defaults on a real property purchase contract.

(See Exhibit A, #9, document A-6)