Amended Standing Provisions of Proposition 64, Applying to Pending Cases, Do Not Expressly Or Implicitly Forbid Amendment Of Complaints To Substitute New Plaintiffs
Posted by Kendra D. Miller
Branick v. Downey Savings and Loan Association, 2006 DJDAR 9612 (Cal. July 24, 2006)
The California Supreme Court held that Proposition 64 does not affect the ordinary rules governing the amendment of complaints and their relation back and that courts could permit a plaintiff to amend a complaint to satisfy Proposition 64’s standing requirements. However, whether Plaintiffs in this case can amend cannot be determined because they have not yet filed a motion for leave to amend, identified any person who might be named as a plaintiff, or described the claims such a person might assert.
Plaintiffs sued Downey Savings and Loan Association, alleging violations of Business and Professions Code sections 17200 and 17500. They brought the action on behalf of the general public. The trial court entered judgment against plaintiffs, finding the claims were pre-empted by the federal Home Owners’ Loan Act. After an appeal was filed, Proposition 64 passed, which amended the statutes to give standing only to those plaintiffs who have suffered injury in fact and lost money or property. The court of appeal found Proposition 64 applied to this case and remanded to the lower court to determine whether this case warranted granting leave to amend.
The California Supreme Court affirmed. The companion case of Californians for Disability Rights v. Mervyn’s (for related article click here) confirms that the amended standing provisions of Proposition 64 apply to cases pending when the proposition took effect. The proposition does not expressly or implicitly forbid the amendment of complaints to substitute new plaintiffs. A rule barring amendments to comply with Proposition 64 would not rationally further any goal articulated by the voters. Whether Plaintiffs in this case may amend cannot be determined yet, as they have not filed a motion for leave to amend, identified a substitute plaintiff or described the claims a new plaintiff may assert. If a motion to amend is filed, the trial court should decide the motion by applying established rules governing leave to amend and the relation back of amended complaints.