House Study Bill 612 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON ANDERSON) A BILL FOR An Act relating to civil actions, procedures, and remedies and 1 including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5413HC (1) 84 rh/rj
H.F. _____ Section 1. NEW SECTION . 611.24 Costs —— attorney fees. 1 1. On the court’s granting or denial, in whole or in part, 2 of a motion to dismiss a cause of action that has no basis 3 in law or fact, the court shall award costs and reasonable 4 attorney fees to the prevailing party in the civil action. 5 2. This section does not apply to actions by or against the 6 state, other governmental entities, or public officials acting 7 in their official capacity or under color of law. 8 Sec. 2. NEW SECTION . 613.3 Designation of third parties —— 9 timely disclosure. 10 A defendant is prohibited from designating a person as a 11 responsible third party with respect to a plaintiff’s cause of 12 action after the applicable limitations period on the cause 13 of action has expired if the defendant has failed to timely 14 disclose that the person may be designated as a responsible 15 third party pursuant to rules of civil procedure 1.231 through 16 1.237. 17 Sec. 3. NEW SECTION . 624.12A Interlocutory appeal of order 18 involving controlling question of law. 19 1. On a party’s motion or on its own initiative, the 20 district court in a civil action, by written order, may permit 21 an appeal from an order that is not otherwise subject to appeal 22 if all of the following are met: 23 a. The order to be appealed involves a controlling question 24 of law upon which there is a substantial ground for difference 25 of opinion. 26 b. An immediate appeal from the order will materially 27 advance the ultimate termination of the litigation. 28 2. An appeal under this section does not stay proceedings in 29 the district court unless all of the following are met: 30 a. The parties agree to a stay. 31 b. The district court or appellate court orders a stay of 32 the proceedings pending appeal. 33 3. The supreme court may accept an appeal permitted by 34 this section if the appealing party files an application for 35 -1- LSB 5413HC (1) 84 rh/rj 1/ 6
H.F. _____ interlocutory appeal, explaining why an appeal is warranted 1 pursuant to subsection 1, within fifteen days after the date 2 the district court signs the order permitting the appeal. The 3 time period applicable to the filing of the notice of appeal 4 commences when the supreme court enters the order accepting the 5 appeal. 6 4. The supreme court shall prescribe rules providing for the 7 expediting of appeals pursuant to this section. 8 5. This section does not apply to an interlocutory appeal in 9 termination of parental rights or child in need of assistance 10 proceedings pursuant to chapter 232. 11 Sec. 4. NEW SECTION . 677.15 Offer requirements. 12 1. An offer to confess judgment made pursuant to this 13 chapter shall meet all of the following requirements: 14 a. Be in writing. 15 b. State that the offer is made pursuant to this chapter. 16 c. State the terms by which the claims may be settled. 17 d. State a deadline by which the offer must be accepted. 18 e. Be served on all parties to whom the settlement offer is 19 made. 20 2. A party is not required to file with the court an offer 21 to confess made pursuant to this chapter. 22 3. A party that makes an offer to confess that does not 23 comply with the requirements of this section shall not be 24 entitled to recover any costs pursuant to section 677.16. 25 Sec. 5. NEW SECTION . 677.16 Costs —— limitation. 26 1. For purposes of this chapter, “costs” means moneys 27 actually spent and obligations actually incurred that are 28 directly related to an action in which an offer is made, and 29 includes all of the following: 30 a. Court costs. 31 b. Reasonable deposition costs. 32 c. Reasonable fees for not more than two testifying expert 33 witnesses. 34 d. Reasonable attorney fees. 35 -2- LSB 5413HC (1) 84 rh/rj 2/ 6
H.F. _____ 2. Costs that may be awarded under this chapter shall not 1 be greater than the total amount that the plaintiff recovers 2 or would recover before adding an award of costs in favor of 3 the plaintiff or subtracting as an offset an award of costs in 4 favor of the defendant. 5 Sec. 6. REPEAL. Sections 677.2, 677.5, 677.10, and 677.13, 6 Code 2011, are repealed. 7 Sec. 7. MOTION TO DISMISS —— FAILURE TO STATE CLAIM —— 8 RULES. The supreme court shall prescribe rules to provide for 9 the dismissal of a civil action that has no basis in law or 10 fact on motion and without evidence. The rules shall provide 11 that the motion to dismiss shall be granted or denied within 12 forty-five days of the filing of the motion to dismiss. Such 13 rules shall not apply to termination of parental rights or 14 child in need of assistance proceedings pursuant to chapter 15 232. 16 Sec. 8. EFFICIENT RESOLUTION OF CIVIL ACTIONS —— RULES. The 17 supreme court shall prescribe rules and procedures to promote 18 the prompt, efficient, and cost-effective resolution of civil 19 actions. The rules shall apply to civil actions in district 20 court in which the amount in controversy, including all claims 21 for damages of any kind, whether actual or punitive, penalties, 22 attorney fees, expenses, costs, interest, or any other type 23 of damage of any kind, does not exceed one hundred thousand 24 dollars. The rules and procedures shall address the need for 25 lowering discovery costs in such actions and the procedure 26 for ensuring that such actions will be expedited in the civil 27 justice system. 28 Sec. 9. APPLICABILITY. This Act applies to causes of 29 actions accrued on or after the effective date of this Act. 30 EXPLANATION 31 This bill relates to civil procedures, actions, and remedies 32 and includes an applicability provision. 33 MOTION TO DISMISS —— FAILURE TO STATE A CLAIM. 34 RULES. The bill provides that the supreme court shall 35 -3- LSB 5413HC (1) 84 rh/rj 3/ 6
H.F. _____ prescribe rules to provide for the dismissal of a civil 1 action that has no basis in law or fact on motion and without 2 evidence. The rules shall provide that the motion to dismiss 3 shall be granted or denied within 45 days of the filing of the 4 motion to dismiss. Such rules shall not apply to termination 5 of parental rights or child in need of assistance proceedings 6 pursuant to Code chapter 232. 7 COSTS AND ATTORNEY FEES. The bill provides that upon the 8 court’s granting or denial, in whole or in part, of a motion to 9 dismiss a cause of action that has no basis in law or in fact, 10 the court shall award costs and reasonable attorney fees to the 11 prevailing party in a civil action. The bill does not apply to 12 actions by or against the state, other governmental entities, 13 or public officials acting in their official capacity or under 14 color of law. 15 DESIGNATION OF THIRD PARTIES IN CIVIL ACTION —— TIMELY 16 DISCLOSURE. The bill prohibits a defendant from designating 17 a person as a responsible third party with respect to a 18 plaintiff’s cause of action after the applicable limitations 19 period on the cause of action has expired if the defendant has 20 failed to timely disclose that the person may be designated as 21 a responsible third party pursuant to rules of civil procedure 22 1.231 through 1.237. 23 INTERLOCUTORY APPEAL OF ORDER INVOLVING CONTROLLING QUESTION 24 OF LAW. The bill provides that, on a party’s motion or on 25 its own initiative, the district court in a civil action, by 26 written order, may permit an appeal from an order that is 27 not otherwise subject to appeal if the order to be appealed 28 involves a controlling question of law upon which there is a 29 substantial ground for difference of opinion and an immediate 30 appeal from the order will materially advance the ultimate 31 termination of the litigation. Such an appeal does not stay 32 proceedings in the district court unless the parties agree to a 33 stay and the district court or appellate court orders a stay of 34 the proceedings. The appealing party must file an application 35 -4- LSB 5413HC (1) 84 rh/rj 4/ 6
H.F. _____ for interlocutory appeal explaining why an appeal is warranted 1 within 15 days after the date the district court signs the 2 order permitting the appeal. The time period applicable to 3 the filing of the notice of appeal starts when the supreme 4 court enters the order accepting the appeal. The bill provides 5 that the supreme court shall prescribe rules which provide 6 for the expediting of appeals. The bill does not apply to an 7 interlocutory appeal in termination of parental rights or child 8 in need of assistance proceedings pursuant to Code chapter 232. 9 SETTLEMENT OFFERS. 10 REQUIREMENTS. The bill provides that an offer to confess 11 judgment made pursuant to Code chapter 677 (offer to confess 12 judgment) shall be in writing, state that the offer is made 13 pursuant to Code chapter 677, state the terms by which the 14 claims may be settled, state a deadline by which the offer 15 must be accepted, and be served on all parties to whom the 16 settlement offer is made. A party is not required to file with 17 the court an offer to confess made pursuant to the bill. A 18 party that makes an offer to confess that does not comply with 19 the requirements of the bill is not be entitled to recover any 20 costs. 21 COSTS. The bill defines “costs” to mean money actually spent 22 and obligations actually incurred that are directly related to 23 an action in which an offer is made, and includes court costs, 24 reasonable deposition costs, reasonable fees for not more 25 than two testifying expert witnesses, and reasonable attorney 26 fees. Costs that may be awarded shall not be greater than 27 the total amount that the plaintiff recovers or would recover 28 before adding an award of costs in favor of the plaintiff or 29 subtracting as an offset an award of costs in favor of the 30 defendant. The bill makes conforming repeals to Code sections 31 677.2, 677.5, 677.10, and 677.13 relating to costs awarded for 32 settlements based upon the time the settlement offer is made 33 and accepted in the civil action. 34 EFFICIENT RESOLUTION OF CIVIL ACTIONS —— RULES. The bill 35 -5- LSB 5413HC (1) 84 rh/rj 5/ 6
H.F. _____ provides that the supreme court shall prescribe rules and 1 procedures to promote the prompt, efficient, and cost-effective 2 resolution of civil actions. The rules shall apply to civil 3 actions in district court in which the amount in controversy, 4 including all claims for damages of any kind, whether actual or 5 punitive, penalties, attorney fees, expenses, costs, interest, 6 or any other type of damage of any kind, does not exceed 7 $100,000. The rules and procedures shall address the need for 8 lowering discovery costs in such actions and the procedure 9 for ensuring that such actions will be expedited in the civil 10 justice system. 11 APPLICABILITY. The bill applies to causes of actions 12 accrued on or after the effective date of the bill. 13 -6- LSB 5413HC (1) 84 rh/rj 6/ 6