Interpretation of Obligations

The California Civil Code, in Division 3, Part 1, Title 2, Chapter 2, provides for joint or several obligations.  Section 1430 states that an obligation imposed upon several persons, or a right created in favor of several persons, may be joint, several, or joint and several.

Section 1431 provides that an obligation imposed upon several persons, or a right created in favor of several persons, is presumed to be joint, and not several, This presumption, in the case of a right, can be overcome only by express words to the contrary.

Section 1431.1 provides legislative findings and declarations that 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.

Section 1431.2 states that, 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 is several only and not joint. Each defendant is 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 is to be rendered against that defendant for that amount. In addition, the terms “economic damages” and “non-economic damages” are defined.

Section 1431.3 specifies that nothing contained in this measure is intended to alter the law of immunity.

Section 1431.4 allows this measure to be amended or repealed by either of the procedures set forth in this section. 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.

Section 1431.5 contains a severability clause.

Section 1432 states that, with an exception, 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.