Business Law Journal

On September 30, 2023, California Governor Gavin Newsom signed into law Senate Bill (SB) No. 235, now codified as California Code of Civil Procedure section 2016.090, introducing a significant shift towards encouraging proactive initial disclosures in state court civil litigation. This legislative change amends California’s Civil Discovery Act to include proactive initial disclosure rules that align with those used in Federal Court. Effective for almost all civil cases filed after January 1, 2024, until January 1, 2027, this amendment heralds a new era of discovery rules in California that aim to foster judicial efficiency, transparency, and fairness in civil litigation.

A federal magistrate judge in the Northern District of California recently rejected a Chinese company’s attempt to invoke China’s recent Personal Information Protection Law (“PIPL”) to limit discovery obligations in the United States.  In Cadence Design Sys., Inc. v. Syntronic AB, No. 21-cv-03610-SI, United States Chief Magistrate Judge Joseph C. Spero refused to limit the PIPL’s legal obligations exception to Chinese laws and China-recognized orders.  On June 24, 2022, the Court denied defendants’ motion for reconsideration of the Court’s earlier order compelling Defendant Syntronic (Beijing) Technology R&D Center Co., Ltd. (“Syntronic Beijing”) to produce computers in the possession and custody of defendants in China, for inspection in the United States.  While on its face China’s PIPL would seemingly prohibit production of these China-stored computers into the United States without the consent of current and former individual employees (who have refused to consent), the Court ruled that its order in the case created a legal obligation sufficient to invoke the legal obligation exception under PIPL Article 13.

The California homestead exemption has been amended effective January 1, 2021.  Under the new law, the homestead exemption now protects home equity equal to the median home price in the county where the debtor resides, not to exceed $600,000, or $300,000, whichever is greater.  The exemption adjusts annually for inflation.  The homestead exemption should be taken into consideration when the defendant may be personally liable for the judgment.