California SB 678

Existing law governs procedures for specified civil actions, including those brought pursuant to the California Environmental Quality Act. Existing law requires a plaintiff to furnish an undertaking as security for costs and damages that may be incurred by the defendant under certain circumstances, such as when the plaintiff challenges a low- or moderate-income housing development project for the purpose of delaying or thwarting the project. This bill would provide that, in a civil action brought to challenge a project that will engage in fire prevention activities, including those brought pursuant to the California Environmental Quality Act, a defendant may seek an order requiring the plaintiff to furnish an undertaking as security for costs and damages that may be incurred by the defendant if the bringing of the action or seeking by the plaintiff of particular relief, including injunctive relief, would result in preventing or delaying the project. The bill would require the defendant to show that the action is without merit and that it was brought in bad faith, vexatiously, for the purpose of delay, or to thwart the project. The bill would permit a plaintiff in responding to such a motion to request that the amount of the undertaking be limited because it would result in economic hardship, as specified. This bill would authorize the court to order an undertaking not to exceed $500,000 or to decline to require an undertaking if the court finds that it would cause the plaintiff to suffer undue economic hardship. This bill would declare that it is to take effect immediately as an urgency statute.