What SB 577 Changes for California Public Entity Injury Claims

Many serious injury cases in California involve more than one responsible party. A driver runs a red light at an intersection with a hidden signal. A tree a city failed to inspect falls on a parked car. A bus agency and a private contractor both play a part in a crash. When a city, county, school district, or other public entity shares fault with someone else, the rules for who pays which damages can decide how much an injured person or a grieving family actually recovers.

Senate Bill 577 changes one of those rules. Governor Newsom approved SB 577 on September 30, 2026, and it was filed with the Secretary of State the same day as Chapter 971, Statutes of 2026. Among many other changes, it amends Civil Code section 1431.2 to limit when a public entity can be held responsible for more than its own share of economic damages.

In plain terms: Starting with lawsuits filed on or after January 1, 2027, a public entity that a jury finds 15 percent or less at fault for an injury will generally pay only its own percentage of the economic damages, like medical bills and lost earnings. If the public entity is found more than 15 percent at fault, the old rule still applies, and it can be on the hook for the full economic damages along with the other defendants.

This page is general information, not legal advice. It summarizes the chaptered bill text as published by the Legislature. Courts have not yet applied the new language.

If you were hurt or lost a family member and a public entity may share responsibility, Win Attorneys handles personal injury and wrongful death and catastrophic injury matters statewide. Seek medical care first, and keep every record.

Talk to us at (562) 296-5380 or reach out through our contact page for a free case review. Office: 17291 Irvine Blvd., Suite 210, Tustin, CA 92780.

What the Law Was Before SB 577

Civil Code section 1431.2, adopted by California voters in 1986 as Proposition 51, already split damages into two groups in personal injury, property damage, and wrongful death cases based on comparative fault:

Non-economic damages. These are subjective, non-monetary losses, such as pain, suffering, emotional distress, and loss of companionship. Under section 1431.2, each defendant’s liability for these damages is several only. Each defendant pays only its own percentage.
Economic damages. These are objectively verifiable monetary losses. Section 1431.2 did not limit liability for these, so defendants could be jointly liable for the full amount of economic damages regardless of their percentage of fault.

Joint liability for economic damages matters most when one defendant cannot pay. If an uninsured or underinsured driver is mostly at fault and a public entity is partly at fault, joint liability has allowed the injured person to collect the full economic damages from the public entity, which can then seek contribution from the other defendants.

What SB 577 Changes in Civil Code Section 1431.2

Section 2 of SB 577 adds a new paragraph to section 1431.2(a). According to the chaptered text:

Which cases. Any action filed on or after January 1, 2027, alleging personal injury, property damage, or wrongful death against a public entity, based upon principles of comparative fault.
The new rule. The liability of each public entity defendant for economic damages is several only and is not joint. Each public entity defendant is liable only for the economic damages allocated to it in direct proportion to its percentage of fault, and a separate judgment is entered against it for that amount.
The 15 percent threshold. The new rule does not apply if the public entity is found to be more than 15 percent at fault.

The bill leaves the existing rule on non-economic damages in place, and it keeps the definitions in section 1431.2(b). Economic damages include medical expenses, loss of earnings, burial costs, loss of use of property, repair or replacement costs, costs of substitute domestic services, loss of employment, and loss of business or employment opportunities.

How the Threshold Works

Here is a simple hypothetical, using percentages only:

A jury finds a private driver 85 percent at fault and a city 15 percent at fault. Because the city is not more than 15 percent at fault, its share of economic damages is limited to 15 percent.
A jury finds a private driver 80 percent at fault and a city 20 percent at fault. Because the city is more than 15 percent at fault, the new limit does not apply, and the existing joint liability rule for economic damages still applies to the city.

In both examples, the city still pays only its percentage of non-economic damages, as before.

The Filing Date Controls

The new paragraph applies based on when the lawsuit is filed, not when the injury happened. The text says it applies to any action filed on or after January 1, 2027. SB 577 has no urgency clause, so it takes effect on January 1, 2027 under the usual rule for California statutes.

The Government Claims Act Still Comes First

SB 577 does not change the claim presentation requirements that apply before most injury lawsuits against public entities. Those rules come from the Government Claims Act, which SB 577 does not amend for these cases:

Six months. A claim for death or for injury to person must be presented no later than six months after the claim accrues under Government Code section 911.2.
Late claims. If the six months pass, Government Code section 911.4 allows a written application for leave to present a late claim, made within a reasonable time not to exceed one year after accrual.
Claim before suit. Under Government Code section 945.4, no suit for money or damages may be brought against a public entity on a claim that must be presented until a written claim has been presented and acted on or deemed rejected.
Response time. Under Government Code section 912.4, the board generally has 45 days to act, and a claim not acted on is deemed rejected.
Lawsuit deadline. Under Government Code section 945.6, suit generally must be filed within six months after written notice of rejection is personally delivered or deposited in the mail, or within two years from accrual if no written notice is given.

Because SB 577 keys its new rule to the filing date, the claim timeline can affect which rule applies. Do not try to time a filing on your own. Missing a Government Claims Act deadline can end a case. For more on these steps, see our guides to government claims filed too early and the six-month transit claim deadline.

SB 577 is not the only 2027 change. Read what the AB 2529 declaration means for government claims.

A Second Change: Defense Cost Motions Under Section 1038

SB 577 also amends Code of Civil Procedure section 1038, which applies in civil proceedings under the Government Claims Act. Under that section, a defendant can ask the court to decide whether the plaintiff brought the case with reasonable cause and a good faith belief that there was a justifiable controversy. If not, the court awards reasonable and necessary defense costs.

According to the chaptered text, section 1038 now:

Allows that determination when a demurrer is sustained without leave to amend as to all causes of action against the defendant, or when a motion for judgment on the pleadings is granted, in addition to the motions previously listed, such as summary judgment, directed verdict, and nonsuit.
Requires a motion in a case filed on behalf of multiple plaintiffs to identify the specific plaintiffs for which a determination is sought.
Provides that an attorney against whom defense costs are awarded shall not charge the client for those costs as a litigation cost or expense.

The practical point is that claims against public entities should be investigated and supported before suit is filed.

Other Parts of SB 577

SB 577 is a broad bill relating to public entities. Its other provisions include changes to time limits, proof requirements, and damages in childhood sexual assault cases against public entities, school and local finance provisions, and new duties for local agencies regarding minors. This page focuses only on the changes most relevant to general personal injury and wrongful death claims.

What SB 577 Means for Injured People and Families

Other defendants matter more. When a public entity is only a small part of the fault, the recovery for economic damages may depend more on the other defendants and their insurance.
Fault allocation matters more. Whether a public entity is found more than 15 percent at fault can change who pays medical bills and lost earnings. Evidence about a dangerous condition, notice, and the entity’s role becomes even more important.
Your own coverage matters. In vehicle cases, your uninsured and underinsured motorist coverage and medical payments coverage may play a larger role.
Early investigation matters. Photos, measurements, maintenance and complaint records, and witness information help show each party’s share.

A recent example of a public entity case is the Anaheim falling tree settlement we wrote about in can you sue a California city when its tree falls on you or your car. That post explains how dangerous condition claims against a city work.

Steps to Take Now

Seek medical care and follow your treatment plan.
Write down the date of the injury and identify every agency that may own or maintain the location.
Preserve evidence of the condition, including photos and video, before it is repaired.
Track economic losses, including bills, wage records, and repair estimates.
Talk with a lawyer early about the claim deadline and the new rule.

Talk With Win Attorneys

Win Attorneys helps injured people and families across California from our Tustin office, including claims involving cities, counties, transit agencies, and school districts. Our office is fluent in Spanish and Vietnamese; say so when you call.

Talk to us at (562) 296-5380, write through our contact page, or visit 17291 Irvine Blvd., Suite 210, Tustin, CA 92780. The case review is free.

SB 577 Public Entity Claim FAQs

What does SB 577 change for injury claims against public entities?

SB 577 amends Civil Code section 1431.2. In personal injury, property damage, and wrongful death actions filed on or after January 1, 2027, each public entity defendant’s liability for economic damages is several only, so it pays only its percentage, unless the public entity is found more than 15 percent at fault.

When does SB 577 take effect?

The governor approved SB 577 on September 30, 2026, as Chapter 971, Statutes of 2026. It has no urgency clause, so it takes effect January 1, 2027. The new economic damages rule applies to actions filed on or after January 1, 2027.

What happens if the public entity is more than 15 percent at fault?

The new limit does not apply. Under the bill text, the several-only rule for economic damages does not apply if the public entity is found to be more than 15 percent at fault, so the existing joint liability rule for economic damages remains.

Does SB 577 change non-economic damages against public entities?

No. Under section 1431.2, every defendant, including a public entity, was already liable only for its own percentage of non-economic damages, such as pain, suffering, and loss of companionship. SB 577 keeps that rule.

Do I still have to file a government claim before suing?

Yes. SB 577 does not amend the Government Claims Act presentation rules for these cases. A claim for injury or death generally must be presented within six months under Government Code section 911.2, and suit generally cannot be filed until the claim is acted on or deemed rejected under section 945.4.

Does SB 577 apply to an injury that happened before 2027?

The new rule is tied to the filing date. The bill text applies it to any action filed on or after January 1, 2027, alleging personal injury, property damage, or wrongful death against a public entity. Because claim deadlines also apply, talk to a lawyer about timing.

What are economic damages under Civil Code section 1431.2?

Economic damages are objectively verifiable monetary losses, including medical expenses, loss of earnings, burial costs, loss of use of property, repair or replacement costs, costs of substitute domestic services, loss of employment, and loss of business or employment opportunities.

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For deadlines, steps and exceptions in claims against cities, counties, Caltrans and transit agencies, see our California government and Caltrans claims guide.

Disclaimer

This page is general information for educational purposes. It is not legal advice and does not create an attorney-client relationship. Bill details are taken from the chaptered text of Senate Bill 577 (Chapter 971, Statutes of 2026) as published by the California Legislature. Courts have not yet interpreted the new provisions, and outcomes depend on the facts of each matter. Seek medical care for injuries. Consult a licensed California attorney about your situation.