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California Code Of Civil Procedure Section 425.15

Legal Research Home > California Lawyer > Code of Civil Procedure > California Code Of Civil Procedure Section 425.15

(a) No cause of action against a person serving without
compensation as a director or officer of a nonprofit corporation
described in this section, on account of any negligent act or
omission by that person within the scope of that person's duties as a
director acting in the capacity of a board member, or as an officer
acting in the capacity of, and within the scope of the duties of, an
officer, shall be included in a complaint or other pleading unless
the court enters an order allowing the pleading that includes that
claim to be filed after the court determines that the party seeking
to file the pleading has established evidence that substantiates the
claim. The court may allow the filing of a pleading that includes
that claim following the filing of a verified petition therefor
accompanied by the proposed pleading and supporting affidavits
stating the facts upon which the liability is based. The court shall
order service of the petition upon the party against whom the action
is proposed to be filed and permit that party to submit opposing
affidavits prior to making its determination. The filing of the
petition, proposed pleading, and accompanying affidavits shall toll
the running of any applicable statute of limitations until the final
determination of the matter, which ruling, if favorable to the
petitioning party, shall permit the proposed pleading to be filed.
   (b) Nothing in this section shall affect the right of the
plaintiff to discover evidence on the issue of damages.
   (c) Nothing in this section shall be construed to affect any
action against a nonprofit corporation for any negligent action or
omission of a volunteer director or officer occurring within the
scope of the person's duties.
   (d) For the purposes of this section, "compensation" means
remuneration whether by way of salary, fee, or other consideration
for services rendered. However, the payment of per diem, mileage, or
other reimbursement expenses to a director or officer shall not
constitute compensation.
   (e) (1) This section applies only to officers and directors of
nonprofit corporations that are subject to Part 2 (commencing with
Section 5110), Part 3 (commencing with Section 7110), or Part 4
(commencing with Section 9110) of Division 2 of Title 1 of the
Corporations Code that are organized to provide charitable,
educational, scientific, social, or other forms of public service and
that are exempt from federal income taxation under Section 501(c)
(1), except any credit union, or Section 501(c)(4), 501(c)(5), 501(c)
(7), or 501(c)(19) of the Internal Revenue Code.
   (2) This section does not apply to any corporation that unlawfully
restricts membership, services, or benefits conferred on the basis
of political affiliation, age, or any characteristic listed or
defined in subdivision (b) or (e) of Section 51 of the Civil Code.

Last modified: January 12, 2009