Legislature(2007 - 2008)SENATE FINANCE 532

02/20/2008 09:00 AM Senate FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 170 INSURANCE COVERAGE FOR WELL-BABY EXAMS TELECONFERENCED
Heard & Held
+ SB 226 VEXATIOUS LITIGANTS TELECONFERENCED
Heard & Held
+ SB 247 MISSING PERSONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 226                                                                                                           
                                                                                                                                
     "An Act  relating to litigation  brought by  a vexatious                                                                   
     litigant; amending Rules  3, 4, 12, and 41, Alaska Rules                                                                   
     of  Civil  Procedure;  and providing  for  an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
Senator Hollis French read his sponsor statement:                                                                               
                                                                                                                                
          SB 226 creates a process in statute for courts to                                                                     
     manage the  problem of  lawsuits brought by  individuals                                                                   
     who are "vexatious litigants."                                                                                             
                                                                                                                                
          A vexatious litigant is defined as a person who,                                                                      
     among  other  things,  repeatedly   litigates  the  same                                                                   
     claims or  previous adverse  decisions against  the same                                                                   
     parties, files  multiple frivolous lawsuits,  repeatedly                                                                   
     files pleadings or motions  that are frivolous or in bad                                                                   
     faith,  or  repeatedly  engages   in  tactics  that  are                                                                   
     without merit or intended to cause unnecessary delay.                                                                      
                                                                                                                                
          The bill allows the court to impose reasonable                                                                        
     restrictions  on  vexatious  litigants'  access  to  the                                                                   
     court.  Under SB  226 a  court  can require  conditions,                                                                   
     such as the posting of security  or pre-filing review of                                                                   
     a  complaint  by a  presiding  judge, before  an  action                                                                   
     filed  by  a vexatious  litigant  can  proceed.  Several                                                                   
     states have  passed similar  legislation to  control the                                                                   
     problem of vexatious litigation.  The provisions in this                                                                   
     bill are based on California's  Code of Civil Procedure.                                                                   
                                                                                                                                
          Vexatious litigation needlessly burdens the                                                                           
     resources of  the court system, and  creates unnecessary                                                                   
     expense  for  individuals who  are  the  target of  this                                                                   
     litigation  in the  public  and private  sectors. It  is                                                                   
     certainly  important   to  recognize  and   protect  the                                                                   
     individual's  right  to  litigate  claims in  our  court                                                                   
     system.  SB 226 will  only affect  those few cases  that                                                                   
     are clearly without merit.  This bill will provide means                                                                   
     for screening  out extreme  examples of meritless  cases                                                                   
     before they  are filed. Please join me  in supporting SB
     226.                                                                                                                       
                                                                                                                                
10:15:13 AM                                                                                                                   
                                                                                                                                
Senator Elton inquired  about costs to the court  system when                                                                   
making a decision if a litigant  is vexatious or not. Senator                                                                   
French expressed  his belief that the costs  would be minimal                                                                   
since the cost  of deflecting the lawsuit would  be less than                                                                   
processing  the lawsuit.  Senator Elton  questioned if  there                                                                   
was any discussion on imposing a time limit.                                                                                    
                                                                                                                                
Senator  French  pointed out  that  on  page 3,  line  12-16,                                                                   
identifies  a  "vexatious  litigant,   a  person  who  reacts                                                                   
without a lawyer, who:                                                                                                          
                                                                                                                                
     (A)  commenced,   prosecuted,  or   maintained  as   the                                                                   
     plaintiff at least five litigations  in state or federal                                                                   
     court,  other  than  small claims  actions,  during  the                                                                   
     preceding seven years                                                                                                      
                                                                                                                                
10:17:51 AM                                                                                                                   
                                                                                                                                
Senator  Huggins  asked what  would  happen  if the  sentence                                                                   
about  "not" having  an attorney  was removed  from the  bill                                                                   
(page 3, line 12-13).                                                                                                           
                                                                                                                                
Senator French  answered that he  did not believe  this would                                                                   
affect  the  bill   or  any  lawyer,  but  deferred   to  the                                                                   
Department  of  Law  or  the   court  system.  Senator  Elton                                                                   
wondered if someone suing multiple  individuals over the same                                                                   
case could be classified as a vexatious litigant.                                                                               
                                                                                                                                
10:19:23 AM                                                                                                                   
                                                                                                                                
Senator  French deferred  the question  to the Department  of                                                                   
Law.                                                                                                                            
                                                                                                                                
10:19:34 AM                                                                                                                   
                                                                                                                                
SUSAN  COX, ASSISTANT  ATTORNEY GENERAL,  DEPARTMENT OF  LAW,                                                                   
JUNEAU,  responded to  previous  questions  by the  committee                                                                   
members. She  answered the  question regarding an  individual                                                                   
filing lawsuits over a period  of time, refraining for a time                                                                   
period,  then   resuming  again.  She  indicated   that  this                                                                   
legislation was  modeled after  the California Code  of Civil                                                                   
Procedure,  enacted 40 years  ago, where  there is  a process                                                                   
for having  a pre-filing orders  vacated. Ms.  Cox reiterated                                                                   
that this  legislation does  not bar  anyone's access  to the                                                                   
courts,   only   places  some   restrictions   precedent   to                                                                   
litigating for vexatious litigants.                                                                                             
                                                                                                                                
10:23:08 AM                                                                                                                   
                                                                                                                                
Senator Elton  wondered about  a person becoming  a vexatious                                                                   
litigant, not over filing too  many cases in the exacted time                                                                   
period, but  filing multiple  suits against different  people                                                                   
over the  same issue, such  as a neighborhood  situation. Ms.                                                                   
Cox  responded  again  that  the   definition  requires  five                                                                   
different law suits over a seven  year period and all decided                                                                   
adversely against the filer.                                                                                                    
                                                                                                                                
10:25:59 AM                                                                                                                   
                                                                                                                                
Senator  Thomas  inquired  about  how many  people  would  be                                                                   
considered vexatious  litigants if this bill  were law today.                                                                   
Ms.  Cox  replied  that  about  six  people  fall  into  this                                                                   
definition  and   another  six  against  the   Department  of                                                                   
Corrections.  In  total, less  than  twenty  people would  be                                                                   
considered vexatious litigants.                                                                                                 
                                                                                                                                
10:27:28 AM                                                                                                                   
                                                                                                                                
Senator Huggins wondered if the  sentence regarding attorneys                                                                   
on page 3, line  12-13, was struck from the  bill, what would                                                                   
be the effect.   Ms. Cox remarked that the  intention of bill                                                                   
is directed  toward those  people who  have abused  the court                                                                   
system without  the representation  of a lawyer.  Lawyers are                                                                   
controlled  by  contempt  of  court  or  ethics  regulations.                                                                   
Senator Huggins  suggested it  would not  hurt if taken  out.                                                                   
Ms. Cox was  not sure if it  would add or take  anything away                                                                   
from the bill.                                                                                                                  
                                                                                                                                
10:28:58 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman inquired how  the five and seven year number                                                                   
was arrived at. Ms. Cox responded  that it was simply modeled                                                                   
on the California plan that has  been in place for over forty                                                                   
years.                                                                                                                          
                                                                                                                                
Senator Elton followed up on Senator  Huggins' question about                                                                   
removing  the "attorney"  language  and asked  if this  would                                                                   
become a  problem for  attorneys. Ms.  Cox believed  it would                                                                   
only penalize the  plaintiff but there was some  confusion in                                                                   
the language  that could  affect a  lawyer who represented  a                                                                   
vexatious litigant.                                                                                                             
                                                                                                                                
10:30:50 AM                                                                                                                   
                                                                                                                                
DOUG WOOLIVER, ADMINISTRATIVE  ATTORNEY, ALASKA COURT SYSTEM,                                                                   
responded to Senator Elton's question  about fiscal impact to                                                                   
the court system.  He does not see any impact  but noted that                                                                   
this bill  will certainly be  challenged before the  court by                                                                   
the same people it is intended to target.                                                                                       
                                                                                                                                
Senator  Elton wondered  if Mr.  Wooliver saw  a negative  or                                                                   
positive  fiscal impact.  Mr. Wooliver  responded that  there                                                                   
could be  some time and  effort saved  by the court  but this                                                                   
bill really  targets just a  handful of individuals  and will                                                                   
not be used that often.                                                                                                         
                                                                                                                                
10:32:29 AM                                                                                                                   
                                                                                                                                
PETER    MAASEN,    LAWYER,    ANCHORAGE,    testified    via                                                                   
teleconference in  support of SB 226. He believed  this added                                                                   
a  necessary  tool  for trial  judges.  Although  he  opposes                                                                   
anyone not having access to the  court system, he agreed that                                                                   
sometimes situations can go too  far.  Mr. Maasen presented a                                                                   
personal trial case situation  where a client repeatedly sued                                                                   
him and the trial judge when things  did not go his way. This                                                                   
has been  a costly  situation  to him personally  and to  the                                                                   
courts.                                                                                                                         
                                                                                                                                
10:37:00 AM                                                                                                                   
                                                                                                                                
Mr.  Maasen  continued explaining  the  difficulties  dealing                                                                   
with  individuals who  continue  to tie  up  court time  with                                                                   
multiple litigations. He supported  this bill and believes it                                                                   
will be effective in dealing with such cases.                                                                                   
                                                                                                                                
10:37:40 AM                                                                                                                   
                                                                                                                                
Senator French  elaborated that  the bill specifically  notes                                                                   
that this  only deals with  those individuals  who repeatedly                                                                   
file court  cases after  they have lost  a judgment  from the                                                                   
court.  In  all  cases,  the  judge  has  the  discretion  of                                                                   
deciding if someone is indeed a vexatious litigant.                                                                             
                                                                                                                                
10:39:21 AM                                                                                                                   
                                                                                                                                
SB  226  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
10:39:27 AM                                                                                                                   
                                                                                                                                

Document Name Date/Time Subjects