BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          AB 1354 (Huber)
          As Amended January 4, 2012
          Hearing Date: July 3, 2012
          Fiscal: No
          Urgency: No
          RD   
                    

                                        SUBJECT
                                           
                Civil Procedure: Discovery Objections: Privilege Logs

                                      DESCRIPTION  

          This bill would require that if a party makes an objection based 
          on a claim of privilege or a claim that the information sought 
          is protected work product, the response must include sufficient 
          factual information for other parties to evaluate the merits of 
          that claim and, if necessary, produce a privilege log.  

                                      BACKGROUND  

          The Civil Discovery Act sets forth the procedures by which 
          parties to a civil action obtain "discovery."  (See Code of Civ. 
          Proc. Sec. 2017.010 et seq.)  Under that Act, any party may 
          obtain discovery regarding any matter, not privileged, that is 
          relevant to the subject matter involved in the pending action or 
          to the determination of any motion made in that action, if the 
          matter either is itself admissible in evidence or appears 
          reasonably calculated to lead to the discovery of admissible 
          evidence.  One way in which a party may obtain discovery is 
          through inspections of documents, things, and places.  At the 
          same time, a party has the right to object to a discovery demand 
          on the basis of a privilege or work product in certain 
          circumstances.  

          In 2009, AB 578 (Huber) was introduced, seeking to authorize the 
          party making a discovery demand to move for an order to require 
          the responding party to produce a "privilege log" if the 
          responding party objects on the basis of privilege or work 
          product, as specified.  That bill, among other things, attempted 
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          to define the term and would have also required the court to 
          order the party claiming the privilege to prepare and serve a 
          privilege log according to the terms and conditions deemed 
          appropriate by the court, if the court, in its discretion, 
          determined that a privilege log is necessary in order to 
          determine the validity of the claim.  The bill was not moved out 
          of this Committee.  

          Last year, the author introduced AB 238 (Huber, 2011), a bill 
          that is identical to the current bill, after working extensively 
          to address issues raised by the previous version of this bill 
          with numerous groups, including the Judicial Council, Consumer 
          Attorneys of California (CAOC), California Judges Association, 
          State Bar, California Defense Counsel, and Civil Justice 
          Association.  These groups were neutral on the version of the 
          bill that came to this Committee for review, but the bill was 
          subsequently gutted and amended into a bill on motor vehicle 
          conditional sale contracts.

          This bill would expressly require a responding party who objects 
          to a discovery demand on the basis of a claim of privilege or 
          work product to provide sufficient factual information in its 
          response for other parties to evaluate the merits of that claim, 
          including, if necessary, a privilege log.  

                                CHANGES TO EXISTING LAW
           
           Existing law  , the Civil Discovery Act, provides procedures by 
          which parties to a civil action conduct and obtain "discovery."  
          (Code Civ. Proc. Sec. 2017.010 et seq.) 
           
           Existing law  provides that, unless otherwise limited by court 
          order in accordance with the Civil Discovery Act, any party may 
          obtain discovery regarding any matter, not privileged, that is 
          relevant to the subject matter involved in the pending action or 
          to the determination of any motion made in that action, if the 
          matter either is itself admissible in evidence or appears 
          reasonably calculated to lead to the discovery of admissible 
          evidence.  (Code Civ. Proc. Sec. 2017.010.)  

           Existing law  provides that no person has a privilege to refuse 
          to be a witness; refuse to disclose any matter or refuse to 
          produce any writing, object, or thing unless otherwise provided 
          by statute.  (Evid. Code Sec. 911.)  Existing law allows for 
          specified privileges, including attorney-client, 
          physician-patient, and others.  (Evid. Code Secs. 930-1063.)   
                                                                      



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           Existing law  requires the court to limit the scope of discovery 
          if the burden, expense, or intrusiveness of that discovery 
          clearly outweighs the likelihood that the information sought 
          will lead to the discovery of admissible evidence.  (Code Civ. 
          Proc. Sec. 2017.020(a).)

           Existing law  declares policy of the state underlying the 
          work-product privilege.  The policy is to both: 
           preserve the rights of attorneys to prepare cases for trial 
            with that degree of privacy necessary to encourage them to 
            prepare their cases thoroughly and to investigate not only the 
            favorable but the unfavorable aspects of those cases; and 
           prevent attorneys from taking undue advantage of their 
            adversary's industry and efforts.  (Code Civ. Proc. Sec. 
            2018.020(a)-(b).)  

           Existing law  provides that a writing that reflects an attorney's 
          impressions, conclusions, opinions, or legal research or 
          theories is not discoverable under any circumstances.  (Code 
          Civ. Proc. Sec. 2018.030(a).)  Existing law provides that the 
          work product of an attorney, other than a writing, as described 
          above, is not discoverable unless the court determines that 
          denial of discovery will unfairly prejudice the party seeking 
          discovery in preparing that party's claim or defense or will 
          result in an injustice.  (Code Civ. Proc. Sec. 2018.030(b).) 

           Existing law  enumerates the methods by which a party may obtain 
          discovery, including oral and written depositions; 
          interrogatories; physical and mental examinations; requests for 
          admissions; simultaneous exchanges of expert trial witness 
          information; and inspections of documents, things and places.  
          (Code Civ. Proc. Sec. 2019.010.) 

           Existing law  provides the procedures and requirements by which 
          any party may make an inspection demand.  (Code Civ. Proc. Secs. 
          2031.010-2031.060.)  

           Existing law  requires a party to whom a demand for inspection, 
          copying, testing, or sampling has been directed to respond to 
          each item or category of item by either: 
           a statement that the party will comply with the particular 
            demand; 
           a representation that the party lacks the ability to comply 
            with the demand of a particular item or category of item; or 
           an objection to the particular demand for inspection, copying, 
                                                                      



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            testing, or sampling.  (Code Civ. Proc. Sec. 2031.210(a)-(c).) 
             

           Existing law  provides if the responding party objects to the 
          demand for inspection, copying, testing, or sampling of an item 
          or category of item, the response must do both of the following: 

           identify with particularity any document, tangible thing, 
            land, or electronically stored information falling within any 
            category of item in the demand to which an objection is being 
            made; and 
           set forth clearly the extent of, and the specific ground for, 
            the objection.  If the objection is based on a claim of 
            privilege, the particular privilege invoked must be stated.  
            If an objection is based on a claim that the information 
            sought is protected work product, that claim must also be 
            expressly asserted.  (Code Civ. Proc. Sec. 
            2031.240(b)(1)-(2).)  

           Existing law  provides that on receipt of a response to a demand 
          for inspection, copying, testing, or sampling, the demanding 
          party may move for an order compelling further response to the 
          demand, if the party deems that an objection in the response is 
          without merit or too general.  (Code Civ. Proc. Sec. 
          2031.310(a)(3).)  

           Existing case law  provides that a privilege log is jargon, 
          commonly used by courts and attorneys to express the 
          requirements of Section 2031.240 (which requires a party to 
          identify with particularity the document to which objection is 
          being made and set forth clearly the extent of, and the specific 
          ground for, the objection, the particular privilege, and 
          expressly assert if an objection is based on a claim that 
          information sought is protected work product).  Existing case 
          law provides that the purpose of a privilege log is to provide a 
          specific factual description of documents in aid of 
          substantiating a claim of privilege in connection with a request 
          for document production, so as to permit a judicial evaluation 
          of the claim of privilege.  (Hernandez v. Superior Court (2003) 
          112 Cal.App.4th 285, 292.)

           Existing case law  provides that, if the responding party objects 
          to a demand on the basis of a privilege or work-product claim, 
          the court may require the objecting party to produce a privilege 
          log, with information "sufficiently specific to allow a 
          determination of whether each withheld document is or is not in 
                                                                      



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          fact privileged."  Case law also provides that a responding 
          party is not automatically required to produce a privilege log 
          at the time of objection.  (Best Product Inc. v. Superior Court 
          (2004) 119 Cal.App.4th 1181, 1188-1190.)  Case law further 
          provides that a tardy privilege log does not equate to waiver of 
          any privilege, provided that the objection to discovery on the 
          basis of privilege was expressly made in a timely manner.  (Id. 
          at 1188; Korea Data Systems v. Superior Court (1997) 51 
          Cal.App.4th 1513, 1517.)
           
          This bill  would expressly require a responding party who objects 
          to a discovery demand on the basis of a claim of privilege or 
          work product to provide sufficient factual information in its 
          response for other parties to evaluate the merits of that claim, 
          including, if necessary, a privilege log.  
          
                                        COMMENT
           
          1.    Stated need for the bill  

          According to the author: 

            Current law permits a party to a civil action to obtain 
            discovery by inspecting documents, tangible items, and land or 
            other property in the possession of any other party to the 
            action.  Current law also provides procedures that must be 
            followed when the responding party objects to part or all of 
            an inspection demand.  There is no provision in the Code of 
            Civil Procedure requiring a responding party who objects to an 
            inspection demand on the grounds of attorney-client or work 
            product privilege to produce a privilege log unless and until 
            a court orders production.  (Best Product Inc. v. Superior 
            Court (2004) 119 Cal.App.4th 1181, 1188.)   AB Ý1354] codifies 
            current case law for requesting a court order requiring the 
            production of a privilege log.  This bill would require the 
            responding party to provide sufficient factual information in 
            its response for other parties to evaluate the merits of that 
            claim, including, if necessary, a privilege log.  
            Practitioners frequently refer to privilege logs but there is 
            no common definition of a privilege log and what categories it 
            should contain.  There are some cases that justify ordering 
            the production of a privilege log at the outset and some cases 
            that do not justify the expense of one at all.  This proposal 
            allows the parties to agree to "opt in" or the Court to order 
            the parties to comply.  

                                                                      



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          2.    Discovery rights and evidentiary privileges -- balancing 
            the right to evidence against the need for confidentiality  
           
           This bill seeks to require a party who objects to a discovery 
          demand on the basis of a claim of privilege or work product to 
          provide sufficient factual information in its response for other 
          parties to evaluate the merits of that claim, including, if 
          necessary, a privilege log.  

          Under the Civil Discovery Act, parties have the right to 
          discovery of any matter, not privileged, that is relevant to the 
          subject matter involved in the pending action or to the 
          determination of any motion made in that action, if the matter 
          either is itself admissible in evidence or appears reasonably 
          calculated to lead to the discovery of admissible evidence.  
          There are several methods for a party to obtain discovery, such 
          as depositions, interrogatories, and so forth; one such way is 
          through inspections of documents, things, and places.   

          This right of parties to conduct discovery and uncover 
          admissible evidence is tied to the interest in introducing all 
          relevant evidence when a matter is decided in court, which in 
          turn stems from a general legal principle that the public has an 
          interest and right to "every man's evidence."  At the same time, 
          the law considers certain evidence as privileged, and thereby 
          not subject to discovery.  (See Evid. Code Secs. 911, 930-1063.) 
           These privileges include the attorney-client privilege, 
          physician-patient privilege, spousal privilege, and others.    

          In reviewing such statutory privileges, courts have repeatedly 
          found that the public benefits most by protecting confidential 
          communications in certain relationships and permitting the 
          holder of the privilege to refuse to disclose and prevent others 
          from disclosing the contents of those communications. These 
          rules facilitate the purpose of those privileged relationships 
          by removing any fear that information which is key to receiving 
          the assistance of a doctor, lawyer, counselor, psychotherapist, 
          spouse, or clergyman will be disclosed.  Without that assurance, 
          it is believed that many people would not appropriately seek the 
          assistance or share the information needed to enable proper 
          assistance, to the detriment of their physical health, mental 
          health, or legal rights.  Still, evidentiary privileges have 
          been carefully limited to balance the need for confidentiality 
          with that fundamental right of the public to every man's 
          evidence.

                                                                      



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          Relatedly, under existing law, a party has the right to object 
          to a discovery demand on the basis of privilege or work product 
          in certain circumstances.  In fact, a court must limit the scope 
          of discovery if it determines that the burden, expense, or 
          intrusiveness of that discovery clearly outweighs the likelihood 
          that the information sought will lead to the discovery of 
          admissible evidence.  (Code Civ. Proc. Sec. 2017.020(a).)  At 
          the same time, the claim of privilege alone is not sufficient to 
          prohibit discovery; an objecting party must further make a 
          showing that the privilege is rightfully claimed. 

          As a result, Section 2031.240(b)(2) of the Civil Discovery Act 
          provides that if a party responding to a demand for inspection, 
          copying, testing, or sampling objects to that demand, that party 
          must set forth clearly the extent of, and the specific ground 
          for, the objection.  If the objection is based on a claim of 
          privilege, the particular privilege invoked must be stated, as 
          must any claim that the information sought is protected work 
          product.  (Code Civ. Proc. Sec. 2031.240(b)(1)-(2).)  In effect, 
          "Ýt]he law attempts to find a balance between these competing 
          interests in discovery and the assertion of privilege by 
          requiring a party objecting to document production to "identify 
          with particularity" any document as to which it makes an object 
          and "set forth clearly the extent of, and specific ground for, 
          the objection in accordance with Ýthis section]."  (Kaiser 
          Foundation Hospitals v. Superior Court (1998) 66 Cal.App.4th 
          1217, 1228.)

          This bill seeks to codify case law by adding to that provision 
          of existing law that a party must provide sufficient factual 
          information when objecting to a demand for inspection based on 
          privilege or work product, and that privilege logs may be 
          required, if necessary.  

          3.    Privilege logs under existing law  

          The author maintains that this bill would simply codify that 
          privilege logs may be required of a party objecting to an 
          inspection demand based on privilege or work product.

          In accordance with current case law, after a discovery demand is 
          made, a party may object to the discovery of specific requested 
          items, or any part of an item, so long as the response 
          identifies the item with particularity and clearly sets the 
          grounds for objection.  If the requesting party does not find 
          those stated grounds satisfactory to demonstrate that the 
                                                                      



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          privilege exists, it may move for an order compelling the 
          further response.  As a result, the question arises as to when 
          and for what purpose privilege logs are to be used.

          Ultimately, case law concludes that while a privilege log can be 
          used at any point on a voluntary basis or as a result of an 
          agreement between parties, courts may require the production of 
          a privilege log at the point that a motion is made to compel 
          "further response," in order to help evaluate the claim of 
          privilege.  (Best Product v. Superior Court (2004) 119 
          Cal.App.4th 1181, 1189-1190; Hernandez v. Superior Court (2003) 
          112 Cal.App.4th 285, 292.)  A party is not automatically 
          required to produce a privilege log in its response under 
          Section 2031.310(b)(2) of the Code of Civil Procedure to the 
          requesting party's demand for inspection.  (Best Product, 119 
          Cal.App.4th at 1190, see Comment 3b below for further 
          discussion.)   

          As discussed below courts appear to already have discretion to 
          both compel the production of a privilege log when appropriate 
          and to define what a privilege log means based upon the 
          circumstances.  To avoid any inadvertent interference with a 
          court's discretion under existing case law, the author proposes 
          a clarifying amendment, discussed in Comment 3(c), to avoid such 
          interference. 

            a.    Privilege log, explained 

             As noted in Comment 2b, the term "privilege log" does not 
            appear and is not defined anywhere in the Code of Civil 
            Procedure.  (See e.g. Hernandez v. Superior Court (2003) 112 
            Cal.App.4th 285.)   In Hernandez v. Superior Court, the Court 
            of Appeal explained that nowhere in the Code of Civil 
            Procedure is the term used or explained.  "The expression is 
            jargon, commonly used by courts and attorneys to express the 
            requirements of subdivision (g)(3) of section 2031."  That 
            section, since renumbered to Section 2031.240, requires a 
            responding party who objects to the demand for inspection of a 
            document based upon a claim of privilege:  (1) identify with 
            particularity the document to which objection is made, and (2) 
            set forth clearly the extent of, and the specific ground for, 
            the objection; state any particular privilege claimed; and 
            expressly assert any objection based on a claim that 
            information sought is protected work product.  (112 
            Cal.App.4th at 292.)

                                                                      



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            As described by the courts, the purpose of a privilege log is 
            to provide a specific factual description of documents in aid 
            of substantiating a claim of privilege in connection with a 
            request for document production.  The purpose of providing a 
            specific factual description of documents, in turn, is to 
            permit a judicial evaluation of the claim of privilege.  (Id.)

            b.    Case law on the application of privilege logs  

            In Best Product v. Superior Court (2004) 119 Cal.App.4th 1181, 
            the Court of Appeal held that the trial court misapprehended 
            the stage of a proceeding at which a privilege log becomes 
            relevant.  In that case, the trial court had found that 
            defendant's failure to provide a privilege log in its response 
            to the plaintiff's demand constituted a waiver of its right to 
            assert the attorney-client and work product privileges, even 
            though the defendant did assert the both privileges in its 
            response objecting to discovery in a timely manner.  Reversing 
            that decision, the Court of Appeal determined that there was 
            "absolutely no requirement that a privilege log be tendered at 
            this point of the discovery proceedings," referencing at the 
            time of the initial response.  (Id. at 1188.)

            The court explained that the need for a privilege log could 
            have arisen if the plaintiff, who had made the discovery 
            demand, had moved to compel further responses to contest the 
            defendant's conclusory attorney-client and work product 
            inspection under the applicable statutory provision.  But the 
            plaintiff in that case did not do so.  (112 Cal.App.4th at 
            1189 (emphasis added).)  The relevant statute, Section 
            2031(m), was substantially similar to that of existing law 
            today, and provided that: "If the party demanding an 
            inspection, on receipt of a response to an inspection demand, 
            deems . . . (3) an objection in response is without merit, or 
            too general, that party may move for an order compelling 
            further response to the demand."  (See Code Civ. Proc. Sec. 
            2031.310(a)(3), providing that on receipt of a response to a 
            demand for inspection, copying, testing, or sampling, the 
            demanding party may move for an order compelling further 
            response to the demand, if the party deems that . . . (3) an 
            objection in the response is without merit or too general.) 

            Thus, under existing case law, if the responding party objects 
            to a demand on the basis of a privilege or work-product claim, 
            in evaluating that objection, the court may require the 
            objecting party to produce a privilege log, with information 
                                                                      



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            "sufficiently specific to allow a determination of whether 
            each withheld document is or is not in fact privileged."  
            However, a responding party is not automatically required to 
            produce a privilege log at the point of objection to claim the 
            privilege.  (Best Product Inc. 119 Cal.App.4th 1181, 
            1188-1190; see also Korea Data Systems v. Superior Court 
            (1997) 51 Cal.App.4th 1513, 1517.)  This bill seeks to codify 
            those same principles and provide clarity for future cases on 
                                                                       the use and application of privilege logs, while also adding 
            the word "privilege logs" to the Code of Civil Procedure for 
            the first time. 

             c.    Author's amendment to clarify the intent of the bill and 
               avoid unintended consequences
             
            Committee staff notes that it is important that the right to 
            claim a privilege not be waived by the production of a 
            privilege log, which often may contain information that an 
            attorney would not otherwise reveal based on confidential 
            communications.  For example, the time a communication is made 
            to a particular party, often included in a privilege log, may 
            be considered privileged itself under the circumstances.  

            Moreover, absent the clarifying amendment discussed below, 
            codification of the term "privilege log," without a 
            correlating definition or detailed guidance for the courts, 
            could be construed to be a substantive change in law with 
            unknown consequences. 

            Accordingly, the following author's amendment would clarify 
            the intent of the bill, and ensure that it is not construed to 
            change case law with respect to privilege logs.  

                Author's Amendment  : 

               On page 3, line 21, after (c) insert "(1)"  

               On page 3, after line 25, insert "(2) It is the intent of 
               the Legislature to codify the concept of a privilege log as 
               that term is used in California case law.  Nothing in this 
               subdivision shall be construed to constitute a substantive 
               change in case law."


           Support  :  Consumer Attorneys of California

                                                                      



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           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Conference on California Bar Associations

           Related Pending Legislation  :  None Known

           Prior Legislation  :

          AB 238 (Huber, 2011) See Background.

          AB 578 (Huber, 2009) See Background.

           Prior Vote  :

          Assembly Floor (Ayes 64, Noes 0)
          Assembly Judiciary Committee (Ayes 10, Noes 0)

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