This law explains how a responsibility or a benefit can be shared among multiple people. It can be shared in three ways: entirely together (joint), separately with each person having their part (several), or a mix of both where all can be held responsible or benefit together as well as individually (joint and several).
An obligation imposed upon several persons, or a right created in favor of several persons, may be:
1. Joint;
2. Several; or,
3. Joint and several.
obligation joint obligation several obligation joint and several shared responsibility rights of several persons individual liability collective liability shared benefit multiple parties joint responsibility separate responsibility individual benefit collective benefit legal rights distribution
(Enacted 1872.)
This section says that when a responsibility or right is given to multiple people, it is usually shared among them all unless there's a specific law stating otherwise or if a contract says differently. If you want to prove that a right is only for one person, you have to have clear proof in writing that says so.
Joint Liability
An obligation imposed upon several persons, or a right created in favor of several persons, is presumed to be joint, and not several, except as provided in Section 1431.2, and except in the special cases mentioned in the title on the interpretation of contracts. This presumption, in the case of a right, can be overcome only by express words to the contrary.
joint obligation joint liability shared responsibility rights of multiple persons obligations of several persons right created in favor express words overcoming presumption Section 1431.2 interpretation of contracts shared rights individual rights exceptions legal presumption
(Amended June 3, 1986, by initiative Proposition 51, Sec. 2. Note: Prop. 51 (the Fair Responsibility Act of 1986) includes Sections 1431.1 to 1431.5 and part of this section.)
This law acknowledges the problems caused by the rule of joint and several liability, where a party can be held responsible for an entire financial burden even if they are only partly at fault. It highlights that this rule can lead to increased taxes, higher prices, and cutbacks in essential services due to high lawsuit and insurance costs. The law seeks to reform this by ensuring that defendants in these cases are only held liable for damages in proportion to their actual level of fault.
Findings and Declaration of Purpose
The People of the State of California find and declare as follows:
a) The legal doctrine of joint and several liability, also known as “the deep pocket rule”, has resulted in a system of inequity and injustice that has threatened financial bankruptcy of local governments, other public agencies, private individuals and businesses and
has resulted in higher prices for goods and services to the public and in higher taxes to the taxpayers.
b) Some governmental and private defendants are perceived to have substantial financial resources or insurance coverage and have thus been included in lawsuits even though there was little or no basis for finding them at fault. Under joint and several liability, if they are found to share even a fraction of the fault, they often are held financially liable for all the damage. The People—taxpayers and consumers alike—ultimately pay for these lawsuits in the form of higher taxes, higher prices and higher insurance premiums.
c) Local governments have been forced to curtail some essential police, fire and other protections because of the soaring costs of lawsuits and insurance premiums.
Therefore, the People of the State of California
declare that to remedy these inequities, defendants in tort actions shall be held financially liable in closer proportion to their degree of fault. To treat them differently is unfair and inequitable.
The People of the State of California further declare that reforms in the liability laws in tort actions are necessary and proper to avoid catastrophic economic consequences for state and local governmental bodies as well as private individuals and businesses.
joint and several liability deep pocket rule financial liability degree of fault tort actions economic impact insurance premiums governmental bodies lawsuit costs taxpayer burden price hikes catastrophic economic consequences fault proportion local governments legal reforms
(Added June 3, 1986, by initiative Proposition 51, Sec. 3. Note: Prop. 51 (the Fair Responsibility Act of 1986) includes Sections 1431.1 to 1431.5 and part of Section 1431.)
This law says that in cases involving personal injury, property damage, or wrongful death in California, each person or party being sued is only responsible for the non-economic damages that match their specific share of the blame. Non-economic damages refer to things like pain and suffering, emotional distress, and similar non-financial losses. This is different from economic damages, which are easily measurable losses like medical bills or lost wages. The court will issue a separate judgment for each defendant based on their percentage of fault.
Several Liability for Non-economic Damages
(a)CA Civil Law Code § 1431.2(a) In any action for personal injury, property damage, or wrongful death, based upon principles of comparative fault, the liability of each defendant for non-economic damages shall be several only and shall not be joint. Each defendant shall be liable only for the amount of non-economic damages allocated to that defendant in direct proportion to that defendant’s
percentage of fault, and a separate judgment shall be rendered against that defendant for that amount.
(b)Copy CA Civil Law Code § 1431.2(b)
(1)Copy CA Civil Law Code § 1431.2(b)(1) For purposes of this section, the term “economic damages” means objectively verifiable monetary losses including medical expenses, loss of earnings, burial costs, loss of use of property, costs of repair or replacement, costs of obtaining substitute domestic services, loss of employment and loss of business or employment opportunities.
(2)CA Civil Law Code § 1431.2(b)(2) For the purposes of this section, the term “non-economic damages” means subjective, non-monetary losses including, but not limited to, pain, suffering, inconvenience, mental suffering, emotional distress, loss of society and companionship, loss of consortium, injury to reputation and humiliation.
non-economic damages comparative fault personal injury wrongful death property damage several liability economic damages pain and suffering emotional distress subjective losses separate judgment allocation of fault proportionate liability mental suffering loss of consortium
(Added June 3, 1986, by initiative Proposition 51, Sec. 4. Note: Prop. 51 (the Fair Responsibility Act of 1986) includes Sections 1431.1 to 1431.5 and part of Section 1431.)
This section clarifies that the measure does not change any existing rules about immunity, which means it keeps the current legal protections that prevent certain people or entities from being sued for damages.
Nothing contained in this measure is intended, in any way, to alter the law of immunity.
immunity alteration of immunity law legal protections lawsuit prevention changes to legal immunity damages protection existing immunity rules unchanged immunity laws liability protection immunity measure impact
(Added June 3, 1986, by initiative Proposition 51, Sec. 5. Note: In the text, "this measure" refers to Prop. 51 (the Fair Responsibility Act of 1986), which includes Sections 1431.1 to 1431.5 and part of Section 1431.)
This law explains how a certain measure can be changed or canceled. There are two ways to do this: one way is through a vote by legislators and the governor, and another way is through a public vote by the people. If part of the first method is invalid, only the public vote method can be used. For the legislative method, a two-thirds majority is needed, along with prior notice to the Secretary of State and distribution to the media. The public vote method involves a statute becoming law only if voters approve it.
Amendment or Repeal of Measure.
This measure may be amended or repealed by either of the procedures set forth in this section. If any portion of subsection (a) is declared invalid, then subsection (b) shall be the exclusive means of amending or repealing this measure.
(a)CA Civil Law Code § 1431.4(a) This measure may be amended to further its purposes by statute, passed in each house by rollcall
vote entered in the journal, two-thirds of the membership concurring and signed by the Governor, if at least 20 days prior to passage in each house the bill in its final form has been delivered to the Secretary of State for distribution to the news media.
(b)CA Civil Law Code § 1431.4(b) This measure may be amended or repealed by a statute that becomes effective only when approved by the electors.
measure amendment repeal procedure subsection invalidity rollcall vote two-thirds majority Governor approval Secretary of State news media distribution public vote electors approval legislative amendment process electoral process statute modification amendment restrictions subsection exclusivity
(Added June 3, 1986, by initiative Proposition 51, Sec. 6. Note: In the text, "this measure" refers to Prop. 51 (the Fair Responsibility Act of 1986), which includes Sections 1431.1 to 1431.5 and part of Section 1431.)
This section means that if any part of the law is found to be invalid or not applicable to certain people or situations, the rest of the law stays intact and in effect. It ensures that only the problematic part is disregarded, but everything else continues to apply as intended. This is what's referred to as 'severability'.
Severability.
If any provision of this measure, or the application of any such provision to any person or circumstances, shall be held invalid, the remainder of this measure to the extent it can be given effect, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby, and to this end the provisions of this measure are
severable.
severability clause invalid provision legal applicability law interpretation remainder of measure effect of provisions law application invalidity impact measure integrity provision separation partial invalidity separation of provisions continued enforcement measure effectiveness
(Added June 3, 1986, by initiative Proposition 51, Sec. 7. Note: In the text, "this measure" refers to Prop. 51 (the Fair Responsibility Act of 1986), which includes Sections 1431.1 to 1431.5 and part of Section 1431.)
This law states that if you're part of a group that owes a debt together, and you end up paying more than your fair share, you can ask the others in the group to pay you back for their portion of the extra you covered. There might be exceptions outlined in another law.
Except as provided in Section 877 of the Code of Civil Procedure, a party to a joint, or joint and several obligation, who satisfies more than his share of the claim against all, may require a proportionate contribution from all the parties joined with him.
joint obligation joint and several obligation proportionate contribution satisfies more than share claim against all contribution from parties extra payment recovery debt sharing party obligation Section 877 exceptions financial responsibility group debt liability obligation contribution extra payment reimbursement debt payment accountability
(Amended by Stats. 1987, Ch. 677, Sec. 1.)
This law states that if you offer to fulfill a promise or duty in the right way and with the goal of completing it, that obligation is considered fulfilled and no longer exists.
An obligation is extinguished by an offer of performance, made in conformity to the rules herein prescribed, and with intent to extinguish the obligation.
offer of performance extinguish obligation fulfillment of duty intent to fulfill conformity rules complete obligation obligation completion discharge of duty performance offer extinguished obligation
(Enacted 1872.)
This law says that if someone offers to complete only part of what they're supposed to do under a contract or agreement, that offer doesn't count. In other words, you can't just do part of a deal and expect it to be accepted as meeting your obligations.
An offer of partial performance is of no effect.
partial performance contract obligations offer rejection agreement fulfillment deal completion contract terms obligation clarity incomplete performance contractual duties offer of performance contractual agreement performing duties performance clause
(Enacted 1872.)
When someone owes a debt, either they or someone else with their approval must make an effort to fulfill the obligation.
An offer of performance must be made by the debtor, or by some person on his behalf and with his assent.
offer of performance debtor's approval fulfilling debt debtor representation assent of debtor perform obligation debt repayment third-party offer debtor consent acting on behalf of debtor
(Enacted 1872.)
This law explains where a debtor can offer to fulfill a payment or obligation if there's no special agreement about it. The debtor can choose from several options: the location the creditor has chosen, wherever the creditor can be found, or at the creditor's home or business if they can't be easily found. If none of these work, the offer can be made anywhere within the state.
In the absence of an express provision to the contrary, an offer of performance may be made, at the option of the debtor:
1. At any place appointed by the creditor; or,
2. Wherever the person to whom the offer ought to be made can be found; or,
3. If such person cannot, with reasonable diligence, be found within this State, and within a reasonable distance from his residence or place of business, or if he evades the debtor, then at his residence or place of business, if the same can, with
reasonable diligence, be found within the State; or,
4. If this cannot be done, then at any place within this State.
offer of performance debtor options creditor location location of fulfillment reasonable diligence creditor's residence place of business fulfilling obligations debtor's choice California jurisdiction performance delivery absent express provision evading debtor place within state performance offer process
(Enacted 1872.)
If you have a duty to do something by a specific time, you need to offer to do it precisely at that time and during normal, reasonable hours. You shouldn't try to do it earlier or later than the set time.
Where an obligation fixes a time for its performance, an offer of performance must be made at that time, within reasonable hours, and not before nor afterwards.
obligation performance fixed time requirement reasonable hours offer of performance timely compliance punctual duty exact timing performance deadline performing obligations timeliness of offer time-bound obligations
(Enacted 1872.)
If a contract or agreement doesn't specify when something needs to be done, the person who owes performance can offer to complete it anytime, as long as they haven't already declined to do so after being reasonably asked.
Where an obligation does not fix the time for its performance, an offer of performance may be made at any time before the debtor, upon a reasonable demand, has refused to perform.
obligation performance offer of performance reasonable demand refusal time for performance debtor contract terms agreement timing contractual obligation
(Enacted 1872.)
This law says that if something is late but can be fully made up for with a specific payment, and it wasn't stated beforehand that being on time was crucial, you can still offer to perform and pay the compensation at any time after the due date. However, you have to respect any rights the creditor or others have gained during the delay.
Where delay in performance is capable of exact and entire compensation, and time has not been expressly declared to be of the essence of the obligation, an offer of performance, accompanied with an offer of such compensation, may be made at any time after it is due, but without prejudice to any rights acquired by the creditor, or by any other person, in the meantime.
delay in performance exact compensation time of the essence offer of performance compensation offer creditor rights late payment due date obligation timing prejudice to rights
(Enacted 1872.)
This law says that when you make an offer to fulfill a payment or obligation, you need to do it honestly and in a way that is most helpful to the person you're owing, given the situation.
An offer of performance must be made in good faith, and in such manner as is most likely, under the circumstances, to benefit the creditor.
offer of performance good faith creditor benefit honesty in payment obligation fulfillment benefit the creditor circumstances performance offer conditions creditor interests good faith offer debt resolution payment methods creditor assistance circumstantial benefit fair dealing
(Enacted 1872.)
If you make an offer to fulfill an obligation, it can't have any conditions that the person you're offering it to isn't required to meet.
An offer of performance must be free from any conditions which the creditor is not bound, on his part, to perform.
offer of performance conditions creditor obligation performance conditions bound to perform fulfilling obligations contract offer conditional offer unconditional performance duty fulfillment performance offer creditor obligations bound conditions performance requirements
(Enacted 1872.)
If you make an offer to do something, it's meaningless unless you're actually prepared and capable of doing what you offered.
An offer of performance is of no effect if the person making it is not able and willing to perform according to the offer.
offer of performance able and willing effectiveness of offer capability to perform prepared to perform performance offer requirements readiness to perform offer validity willingness to perform ability to perform
(Enacted 1872.)
This law says that if you're offering to perform something under a contract, you don't need to actually bring or show the item involved unless the other party agrees to your offer.
The thing to be delivered, if any, need not in any case be actually produced, upon an offer of performance, unless the offer is accepted.
offer of performance thing to be delivered actual production accepted offer contractual obligations performance delivery acceptance condition delivery requirement offer acceptance contract execution subject matter delivery performance offer conditional delivery acceptance of performance performance requirement
(Enacted 1872.)
When you fulfill an obligation by giving something, it should be easily distinguishable and not combined with other things in a way that makes it hard to separate.
A thing, when offered by way of performance, must not be mixed with other things from which it cannot be separated immediately and without difficulty.
performance obligation separate immediately offered by way of performance mixed with other things not mixed fulfill obligation easily distinguishable cannot be separated without difficulty distinguishable items not combined object separation fulfillment separation requirement
(Enacted 1872.)
If someone owes another person a duty to do something, but there's a condition that must be met first or at the same time, they can insist that the condition is fulfilled before they have to do their part.
When a debtor is entitled to the performance of a condition precedent to, or concurrent with, performance on his part, he may make his offer to depend upon the due performance of such condition.
debtor condition precedent concurrent performance offer performance obligation due performance condition fulfillment contractual conditions mutual obligation conditional performance simultaneous duties contractual terms debt conditions obligation fulfillment entitlement to performance
(Enacted 1872.)
If you owe someone something and you give them what you owe, you can ask them to give you a written receipt as proof that you've fulfilled your obligation.
A debtor has a right to require from his creditor a written receipt for any property delivered in performance of his obligation.
debtor creditor written receipt property delivery obligation performance proof of payment fulfillment of obligation right to receipt evidence of delivery property transfer confirmation
(Enacted 1872.)
If you owe someone money and you offer to pay it back, your obligation to pay is considered ended if you immediately put that amount into a reputable bank or savings and loan association for the creditor and then tell them about it.
An obligation for the payment of money is extinguished by a due offer of payment, if the amount is immediately deposited in the name of the creditor, with some bank or savings and loan association within this state, of good repute, and notice thereof is given to the creditor.
payment obligation extinguish debt offer of payment creditor notice bank deposit savings and loan association reputable bank obligation extinguishment deposit in name of creditor immediate deposit
(Amended by Stats. 1981, Ch. 632, Sec. 1. Effective September 23, 1981.)
If someone offers to fulfill a debt or obligation, and there are issues with how they are offering to do it, the person owed must immediately speak up about these issues if they can be fixed. If they don't speak up right then, they can't complain about those issues later.
All objections to the mode of an offer of performance, which the creditor has an opportunity to state at the time to the person making the offer, and which could be then obviated by him, are waived by the creditor, if not then stated.
objections performance offer waived objections creditor's opportunity offer of performance creditor responsibilities state objections obviated issues debt fulfillment performance mode immediate communication creditor consent issue resolution obligation fulfillment creditor silence
(Enacted 1872.)
This law says that when someone owes something to another person (like paying a debt), and they offer what's owed, the ownership of what they offer can be transferred to the person they owe. However, this transfer only happens if the person who owes clearly shows they want to transfer ownership at that time.
The title to a thing duly offered in performance of an obligation passes to the creditor, if the debtor at the time signifies his intention to that effect.
transfer of ownership debtor creditor offer in performance intention to transfer obligation fulfillment title passage performance of obligation signifying intention ownership transfer
(Enacted 1872.)
If someone offers something other than money to fulfill an obligation, they must keep it safe until the person who it's for accepts it. If they want to stop holding it, they have to let the other person know and, if possible, find another safe place to store it.
The person offering a thing, other than money, by way of performance, must, if he means to treat it as belonging to the creditor, retain it as a depositary for hire, until the creditor accepts it, or until he has given reasonable notice to the creditor that he will retain it no longer, and, if with reasonable diligence he can find a suitable depositary therefor, until he has deposited it with such person.
performance obligation thing other than money creditor acceptance retain as depositary reasonable notice depositary for hire suitable depositary offering performance reasonable diligence fulfill obligation safe storage creditor notification transfer responsibility alternative storage object retention
(Enacted 1872.)
If you offer to pay a debt or fulfill a requirement properly, even if you don't hand over the actual item to the creditor, interest on what you owe stops accumulating as if you had completed the obligation.
An offer of payment or other performance, duly made, though the title to the thing offered be not transferred to the creditor, stops the running of interest on the obligation, and has the same effect upon all its incidents as a performance thereof.
offer of payment interest stoppage debt fulfillment performance obligation creditor interest on obligation title transfer payment effect performance incidents obligation interest
(Enacted 1872.)
When someone offers something to pay off a debt and the creditor refuses to accept it, the creditor doesn't have to give it back unless asked. However, if the creditor keeps it without returning, they are considered to be holding it for free as a favor.
If anything is given to a creditor by way of performance, which he refuses to accept as such, he is not bound to return it without demand; but if he retains it, he is a gratuitous depositary thereof.
creditor refusal performance tender return on demand gratuitous depositary debt payment offer refusal to accept holding property unaccepted payment keeping without return fee-free deposit
(Enacted 1872.)
If you owe someone money or a service (a creditor), you need to offer to fulfill that obligation directly to them. If there are multiple creditors, you can make the offer to any one of them or to someone they authorize to collect. You should do this wherever the creditor or their authorized person is located.
Section Fourteen Hundred and Eighty-eight. An offer of performance must be made to the creditor, or to any one of two or more joint creditors, or to a person authorized by one or more of them to receive or collect what is due under the obligation, if such creditor or authorized person is present at the place where the offer may be made; and if not, wherever the creditor may be found.
offer of performance creditor joint creditors fulfill obligation authorized person place of offer collect debt payment location present creditor finding creditor
(Amended by Code Amendments 1873-74, Ch. 612.)