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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-17</ns0:ActionDate>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Kalra</ns0:AuthorText>
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<ns0:Name>Kalra</ns0:Name>
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<ns0:Title> An act to amend Section 1788.61 of the Civil Code, and to amend Section 473.2 of the Code of Civil Procedure, relating to civil actions. </ns0:Title>
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<ns0:Subject>Civil actions: setting aside default or default judgment.</ns0:Subject>
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(1)
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Existing law permits a defendant in a debt enforcement action, brought by a buyer of consumer debt who has obtained a default or default judgment against the defendant, to file a motion to set aside the default or default judgment and for leave to defend the action if the defendant did not receive actual notice of the action in time to defend against it. Existing law requires such a motion to be filed within 6 years after entry of the default or default judgment or 180 days after the first actual notice of the action, or, in the case of identity theft or mistaken identity, within a reasonable amount of time but in no case later than 180 days after the first actual notice of the action.
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<html:p>This bill would clarify that a defendant who did not receive actual notice may file a motion to set aside and for leave to defend even if
the service of the summons of the action was lawfully effected.</html:p>
<html:p>
(2)
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Existing law prescribes methods for the service of a summons in a civil action. Under existing law, a party that was not served in accordance with those methods may file a motion to set aside or vacate a default or default judgment and for leave to defend the action or move for dismissal. The party making such a motion is required to proffer evidence that service was not lawfully effected. This proffer rebuts the presumption of facts stated in the process server’s return and place the burden of proving by a preponderance of the evidence that service of the summons and complaint was lawful on the party seeking the default or default judgment. Existing law makes these provisions operative on January 1, 2027.
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<html:p>This bill would clarify that the provisions described above apply to any proof of service filed on or after January 1, 2027, and
that those provisions do not alter a court’s existing authority to determine a motion for relief from a judgment that involves a proof of service filed before January 1, 2027. The bill would also clarify that a party who is not served may move for dismissal as permitted by existing law.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 1788.61 of the
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is amended to read:
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<ns0:Num>1788.61.</ns0:Num>
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(a)
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(1)
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Notwithstanding Section 473.5 of the Code of Civil Procedure, if service of a summons was lawfully effected but has not resulted in actual notice to a person in time to defend an action brought by a debt buyer and a default or default judgment has been entered against the person in the action, the person may serve and file a notice of motion and motion to set aside the default or default judgment and for leave to defend the action.
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(2)
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Except as provided in paragraph (3), the notice of motion shall be served and filed within a reasonable time, but in no event exceeding the earlier of:
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(A)
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Six years after entry of the default or default judgment against the person.
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(B)
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One hundred eighty days of the first actual notice of the action.
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(3)
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(A)
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Notwithstanding paragraph (2), in the case of identity theft or mistaken identity, the notice of motion shall be served and filed within a reasonable time, but in no event exceeding 180 days of the first actual notice of the action.
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(B)
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(i)
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In the case of identity theft, the person alleging that they are a victim of identity theft shall provide the court with either a copy of a Federal Trade Commission identity theft report or a copy of a police report filed by the person alleging that they are the victim of an identity theft crime, including, but not limited
to, a violation of Section 530.5 of the Penal Code, for the specific debt associated with the judgment.
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(ii)
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In the case of mistaken identity, the moving party shall provide relevant information or documentation to support the claim that they are not the party named in the judgment or is not the person who incurred or owes the debt.
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(b)
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A notice of motion to set aside a default or default judgment and for leave to defend the action shall designate as the time for making the motion a date prescribed by Section 1005 of the Code of Civil Procedure, and it shall be accompanied by an affidavit stating under oath that the person’s lack of actual notice in time to defend the action was not caused by their avoidance of service or inexcusable neglect. The person shall serve and file with the notice a copy of the answer, motion, or other pleading proposed to be filed in the action. Either
party may introduce, and the court may consider, evidence in support of its motion or opposition, including evidence relating to the process server who appears on the proof of service of the summons and complaint.
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(c)
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Upon a finding by the court that the motion was made within the period permitted by subdivision (a) and that the person’s lack of actual notice in time to defend the action was not caused by their avoidance of service or inexcusable neglect, the court may set aside the default or default judgment on whatever terms as may be just and allow the party to defend the action. If the validity of the judgment is not challenged, the court may select an appropriate remedy other than setting aside the default or default judgment.
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(d)
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This section shall apply to a default or default judgment entered on or after January 1, 2010, except in the case of identity theft or mistaken
identity, in which case this section shall apply regardless of the date of the default or default judgment.
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(e)
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This section shall not limit the equitable authority of the court or other available remedies under law.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 473.2 of the
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is amended to read:
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<ns0:Num>473.2.</ns0:Num>
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(a)
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A party that was not served with a summons and complaint in accordance with this chapter may file and serve a motion to set aside or vacate the default or default judgment and for leave to defend the action or move for dismissal as permitted by law.
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(b)
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(1)
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A party moving to set aside or vacate a default or a default judgment pursuant to subdivision (a) shall proffer evidence, through a sworn affidavit or otherwise, that service was not lawfully effected.
Proffering evidence that service was not lawfully effected rebuts a presumption of the facts stated in the process server’s return.
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(2)
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If a process server files their return before the operative date of this section, the absence of the photograph required by Section 417.10 shall not by itself render the proof of service unlawful or insufficient.
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(c)
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In responding to a motion that is filed pursuant to this section and that complies with subdivision (b), the party seeking a default or default judgment has the burden of proving by a preponderance of the evidence that service of the summons and complaint was lawful.
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(d)
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In deciding a motion filed pursuant to subdivision (a), the court shall take evidence as to the lawfulness of the service of process and shall not deny a reasonable request by either party to conduct a
hearing and permit oral testimony.
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(e)
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This section does not limit any other remedies available under law.
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(f)
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This section shall apply to a proof of service filed on or after January 1, 2027.
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(g)
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Nothing in this section alters a court’s existing authority to adjudicate a motion made pursuant to Section 473, or to vacate or set aside a judgment, with respect to a proof of service filed before January 1, 2027.
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