TENTATIVE RULING

Defendants Max Anderson, otherwise known as Mac Anderson, Derek Tan, Excelsior Comics, and Stan Lee Collectibles’ Motion to Bifurcate Trial is GRANTED.

Plaintiff Joan Celia Lee, as Trustee for The Lee Family 1985 Trust, a trust organized under the laws of the State of California shall not introduce any evidence at trial relating to Defendants Max Anderson, otherwise known as Mac Anderson, Derek Tan, Excelsior Comics, and Stan Lee Collectibles’ financial condition until after the jury returns a verdict in Plaintiff’s favor awarding compensatory damages and finding Defendants Max Anderson, otherwise known as Mac Anderson, Derek Tan, Excelsior Comics, and Stan Lee Collectibles to be guilty of malice, oppression, or fraud.

Defendants Max Anderson, otherwise known as Mac Anderson, Derek Tan, Excelsior Comics, and Stan Lee Collectibles to give notice. 

REASONING

Pursuant to Code of Civil Procedure section 1048, subdivision (b), “[t]he court, in furtherance of convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy, may order a separate trial of any cause of action, including a cause of action asserted in a cross-complaint, or of any separate issue or of any number of causes of action or issues, preserving the right of trial by jury required by the Constitution or a statute of this state or of the United States.”

Defendants Max Anderson, otherwise known as Mac Anderson, Derek Tan, Excelsior Comics, and Stan Lee Collectibles (“Defendants”) move the Court for an order bifurcating the punitive damages phase of the trial in this action. Plaintiff Joan Celia Lee, as Trustee for The Lee Family 1985 Trust, a trust organized under the laws of the State of California (“Plaintiff”) opposes the motion to the extent it will impede her ability to prove Defendants’ liability through evidence about Defendants’ profits and financial condition.

The Court finds that bifurcation is proper here. Civil Code section 3295, subdivision (d), provides that “[t]he court shall, on application of any defendant, preclude the admission of evidence of that defendant’s profits or financial condition until after the trier of fact returns a verdict for plaintiff awarding actual damages and finds that a defendant is guilty of malice, oppression, or fraud in accordance with [Civil Code] [s]ection 3294.” Bifurcation of liability from the punitive damages phase is mandatory and proper here. The Court notes that Civil Code section 3295 does not require the exclusion of financial evidence insofar as it is relevant to liability, but it is not clear how specific evidence of the nature and amount of profits would be required to prove Defendants’ liability for the claims alleged. The Court will make the appropriate rulings on the introduction of financial evidence throughout the course of the trial.

Accordingly, Defendants Max Anderson, otherwise known as Mac Anderson, Derek Tan, Excelsior Comics, and Stan Lee Collectibles’ Motion to Bifurcate Trial is GRANTED. Plaintiff Joan Celia Lee, as Trustee for The Lee Family 1985 Trust, a trust organized under the laws of the State of California shall not introduce any evidence at trial relating to Defendants Max Anderson, otherwise known as Mac Anderson, Derek Tan, Excelsior Comics, and Stan Lee Collectibles’ financial condition until after the jury returns a verdict in Plaintiff’s favor awarding compensatory damages and finding Defendants Max Anderson, otherwise known as Mac Anderson, Derek Tan, Excelsior Comics, and Stan Lee Collectibles to be guilty of malice, oppression, or fraud.