Civil Procedure: recovery of defense costs.

Assembly Member Macedo's civil procedure reform measure expands defendants' ability to recover legal costs when facing lawsuits filed without merit, adding demurrer objections to the existing framework for defense cost recovery in California civil proceedings.

Under current law, defendants in Government Claims Act cases and civil actions for indemnity or contribution can petition courts to evaluate whether plaintiffs filed their cases in good faith and with reasonable cause when seeking summary judgment, directed verdict, or similar dispositive motions. The proposed changes would allow courts to make this determination when ruling on demurrers as well. If the court finds the case lacked good faith or reasonable cause, it must order the plaintiff to pay the defendant's reasonable and necessary defense costs, including attorney fees, expert witness fees, and related expenses.

The measure maintains existing procedural safeguards, requiring defendants to request cost recovery before jury discharge or judgment entry and ensuring plaintiffs receive notice and an opportunity to respond. Parties seeking these costs continue to waive their right to pursue separate malicious prosecution damages, though they retain the ability to file malicious prosecution actions. The provisions apply specifically to cases under the Government Claims Act and civil actions for indemnity or contribution.