Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON JUDICIARY

Date:02/18/2014
ATTENDANCE
Time:10:14 AM to 11:49 AM
Buckner
X
Court
X
Place:HCR 0112
Gardner
X
Lawrence
X
This Meeting was called to order by
McLachlan
*
Representative Kagan
Murray
X
Pettersen
X
This Report was prepared by
Salazar
X
Bo Pogue
Waller
*
Lee
X
Kagan
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB14-1127
HB14-1153		Amended, Referred to Finance
Postponed Indefinitely


10:14 AM -- HB14-1127

The committee was called to order. A quorum was present. Representative Coram, prime sponsor, presented House Bill 14-1127, concerning disclosure of information for asset recovery. Testimony was heard on the bill at the committee's February 4 meeting. The chair held the testimony phase of the meeting open to hear select testimony.


10:16 AM

The following persons testified regarding House Bill 14-1127:

10:17 AM -- Mr. Pat Teegarden, representing the Department of Labor and Employment, testified regarding the bill. Mr. Teegarden clarified the department's position on the bill in light of some forthcoming amendments.

10:18 AM -- Mr. Alex Schatz, Legislative Council Staff, discussed the fiscal impact of prepared amendment L.002, and provided an overview of an associated memorandum (Attachment A).

14HseJud0218AttachA.pdf14HseJud0218AttachA.pdf

10:20 AM -- Mr. Scott Allely, represented the Associated Collections Agencies of Colorado and Wyoming and Wakefield and Associates, made himself available to answer questions regarding House Bill 14-1127. Mr. Allely clarified his position on the bill in light of some forthcoming amendments.






10:22 AM

Representative Coram explained the effect of prepared amendment L.001 (Attachment B).

14HseJud0218AttachB.pdf14HseJud0218AttachB.pdf
BILL:HB14-1127
TIME: 10:22:53 AM
MOVED:Court
MOTION:Adopt amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:Salazar
VOTE
Buckner
Court
Gardner
Lawrence
McLachlan
Murray
Pettersen
Salazar
Waller
Lee
Kagan
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

























10:23 AM
BILL:HB14-1127
TIME: 10:23:16 AM
MOVED:Court
MOTION:Adopt amendment L.002 (Attachment A). The motion passed without objection.
SECONDED:Salazar
VOTE
Buckner
Court
Gardner
Lawrence
McLachlan
Murray
Pettersen
Salazar
Waller
Lee
Kagan
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
































10:23 AM
BILL:HB14-1127
TIME: 10:23:39 AM
MOVED:Murray
MOTION:Adopt amendment L.003 (Attachment C). The motion passed without objection.

14HseJud0218AttachC.pdf14HseJud0218AttachC.pdf
SECONDED:Court
VOTE
Buckner
Court
Gardner
Lawrence
McLachlan
Murray
Pettersen
Salazar
Waller
Lee
Kagan
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection



























10:24 AM

Representative Coram provided closing remarks in support of House Bill 14-1127.
BILL:HB14-1127
TIME: 10:24:43 AM
MOVED:Court
MOTION:Refer House Bill 14-1127, as amended, to the Committee on Finance. The motion passed on a vote of 11-0.
SECONDED:McLachlan
VOTE
Buckner
Yes
Court
Yes
Gardner
Yes
Lawrence
Yes
McLachlan
Yes
Murray
Yes
Pettersen
Yes
Salazar
Yes
Waller
Yes
Lee
Yes
Kagan
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


10:25 AM -- HB14-1153

Representative Priola, prime sponsor, presented House Bill 14-1153, concerning attorney fees when an action is dismissed prior to trial. Representative Priola provided background on his reasons for sponsoring the legislation, and explained the effect of the bill. He also explained the effect of forthcoming amendment L.001 (Attachment D). Committee members received a packet of information in support of the bill (Attachment E). Representative Priola responded to questions regarding the treatment of frivolous lawsuits by current law, and how the bill affects this law. Discussion ensued regarding the removal of the court's discretion to rule on frivolous lawsuits by the bill, and the potential impact of this removal of discretion. Discussion followed regarding dismissal of a suit under Rule 12(b) of the Colorado Rules of Civil Procedure and other controlling authority, and the need for House Bill 14-1153 in light of these rules.

14HseJud0218AttachD.pdf14HseJud0218AttachD.pdf14HseJud0218AttachE.pdf14HseJud0218AttachE.pdf











10:39 AM

Discussion continued regarding a court's authority to dismiss lawsuits under certain circumstances.


10:42 AM

The following persons testified regarding House Bill 14-1153:

10:42 AM -- Mr. Paul Fisher, representing the Colorado Bar Association, testified in opposition to the bill. Mr. Fisher explained that the bill will result in a rise in hearings and associated costs, and discussed some confusion that may result from the bill. He also discussed some potential unintended consequences that may result from the bill. Discussion ensued regarding the types of cases that are dismissed under Rule 12(b) of the Colorado Rules of Civil Procedure, and the filing of alternative theories in an attempt to have a case dismissed. Discussion followed regarding the various controls that guard against frivolous court claims.

10:50 AM -- Mr. Qusair Mohamedbhai, representing the Plaintiffs' Employment Lawyers' Association, testified in opposition to the bill. Mr. Mohamedbhai discussed the work done by his organization, the dismissal of constitutional challenges, and the potential chilling effect of the bill on such challenges. Mr. Mohamedbhai also discussed the potential chilling effect of the bill on the bringing of seemingly meritorious lawsuits by those with limited financial resources. He spoke against the removal of the court's discretion in the area of frivolous claims dismissal. Discussion ensued regarding the potential for the bill to chill the pursuit of claims that may explore new areas of the law. Discussion followed regarding the effect of amendment L.001.

10:59 AM -- Ms. Amy Miller, representing the Colorado Coalition Against Domestic Violence, testified in opposition to House Bill 14-1153. Ms. Miller discussed the potential effect of the bill on those seeking protective orders in domestic disputes, and the pro se representation rate in such cases. She discussed the pressures placed on those who seek protective orders to drop the claim, and explained how the bill would exacerbate such pressures. Discussion ensued regarding certain exemptions from the bill's mandates by amendment L.001. Ms. Miller reiterated her claims about the potential chilling effect of the bill. Discussion followed regarding the dismissal of civil protection orders.

11:04 AM -- Mr. Tony Gagliardi, representing the National Federation of Independent Business, testified in support of the bill. Mr. Gagliardi explained that the bill, as amended, will help to remedy a threat to small businesses, but noted that the bill has some problems in its present form. Mr. Gagliardi discussed the costs that small business owners face in defending against court claims, and explained that he hopes steps can be made in the area of tort reform in the future. Mr. Gagliardi responded to questions regarding the need for additional protections for small businesses against frivolous lawsuits. Discussion ensued regarding the recovery of attorney fees by defendants for frivolous lawsuits under certain circumstances.
















11:15 AM

Mr. Gagliardi responded to questions regarding the impact of lawsuits on small businesses in terms of costs, and the recovery of costs by defendants when receiving a favorable judgement. Discussion ensued regarding the types of lawsuit dismissals covered by House Bill 14-1153. Discussion followed regarding the settlement of lawsuits by businesses to avoid further costs.

11:23 AM -- Ms. Stacy Spurlock, representing the Colorado Defense Lawyers' Association, testified in support of House Bill 14-1153. Ms. Spurlock discussed the various circumstances under which a court may dismiss a frivolous lawsuit, and the costs that accrue to defendants during lengthy court cases. Ms. Spurlock discussed protections afforded to plaintiffs in these circumstances, and the rate at which frivolous lawsuits are dismissed. Ms. Spurlock addressed claims made during previous testimony.


11:34 AM

Ms. Spurlock continued to address claims made during previous testimony.


11:35 AM

Representative Priola explained the effect of prepared amendment L.001. Representative Kagan provided his position on the amendment.
BILL:HB14-1153
TIME: 11:35:39 AM
MOVED:Gardner
MOTION:Adopt amendment L.001 (Attachment D). The motion failed on a vote of 4-7.
SECONDED:Waller
VOTE
Buckner
No
Court
No
Gardner
Yes
Lawrence
Yes
McLachlan
No
Murray
Yes
Pettersen
No
Salazar
No
Waller
Yes
Lee
No
Kagan
No
YES: 4 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL









11:38 AM

Discussion ensued regarding further action on House Bill 14-1153.
BILL:HB14-1153
TIME: 11:39:41 AM
MOVED:Gardner
MOTION:Moved to lay over House Bill 14-1153. A substitute motion to lay the bill over for more than 30 days passed.
SECONDED:
VOTE
Buckner
Court
Gardner
Lawrence
McLachlan
Murray
Pettersen
Salazar
Waller
Lee
Kagan
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Withdrawn


























BILL:HB14-1153
TIME: 11:48:02 AM
MOVED:Kagan
MOTION:Lay over House Bill 14-1153 for more than 30 days, effectively postponing the bill indefinitely. The motion passed on a vote of 9-2.
SECONDED:Salazar
VOTE
Buckner
No
Court
Yes
Gardner
Yes
Lawrence
Yes
McLachlan
No
Murray
Yes
Pettersen
Yes
Salazar
Yes
Waller
Yes
Lee
Yes
Kagan
Yes
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


11:49 AM

The committee adjourned.