An employer defending a California employment trial can ask the court to try some issues before others. Code of Civil Procedure section 598 lets the court order liability tried first, and if the employer wins that phase, judgment is entered without any damages trial. Separately, Civil Code section 3295(d) requires the court, on the defendant’s application, to keep evidence of the company’s profits and financial condition out until the jury has found malice, oppression, or fraud. Both tools have timing rules that are easy to miss.
What does section 598 allow?
Trying one issue before another. Code of Civil Procedure section 598 lets the court order “that the trial of any issue or any part thereof shall precede the trial of any other issue or any part thereof in the case,” when “the convenience of witnesses, the ends of justice, or the economy and efficiency of handling the litigation would be promoted thereby.”
The payoff for a defendant is in the next sentence. If liability on all causes of action is tried first and the verdict favors the defendant, “judgment in favor of such party shall thereupon be entered and no trial of other issues in the action as against such party shall be had.” The jury never hears the emotional distress damages case.
When must the motion be made?
Early. A party’s motion under section 598 must be decided “no later than the close of pretrial conference in cases in which such pretrial conference is to be held, or, in other cases, no later than 30 days before the trial date.” The court can still order it on its own motion at any time, but a defendant shouldn’t count on that.
A second statute gives the court broader power. Section 1048(b) lets the court, “in furtherance of convenience or to avoid prejudice,” order “a separate trial of any cause of action” or “of any separate issue,” while preserving the right to a jury.
How are company finances kept out?
By applying under Civil Code section 3295(d). That subdivision says the 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,” under Civil Code section 3295(d).
Unlike section 598, this one isn’t discretionary once the defendant applies. It also limits discovery: under subdivision (c), no pretrial discovery of financial condition is allowed unless the court finds “a substantial probability that the plaintiff will prevail” on the punitive damages claim.
| Tool | Statute | Court’s discretion |
|---|---|---|
| Liability tried first | CCP § 598 | Discretionary; motion has a deadline |
| Separate trial of a claim or issue | CCP § 1048(b) | Discretionary |
| Finances kept out until malice found | Civ. Code § 3295(d) | Mandatory on the defendant’s application |
| Financial discovery limited | Civ. Code § 3295(c) | Requires a court order |
Is bifurcation always the right call?
No. Splitting liability from damages can make the liability case feel abstract, which usually helps the defense. But it can also lengthen the trial if the employee wins the first phase, and some judges resist it in cases where the same witnesses cover both. The financial-condition rule is different: there’s rarely a reason for an employer not to invoke it.
What should an employer do before trial?
Put sequencing on the pretrial checklist.
- Preserve the financial records the employee has requested, but object to producing them absent a section 3295(c) order.
- Calendar the pretrial conference and the 30-day pre-trial mark as the section 598 motion deadline.
- Identify which issues, such as a statute-based defense or a single dispositive claim, would end the case if tried first.
- Pull the punitive damages allegations and confirm which defendants they target.
- Talk to trial counsel about whether bifurcation helps or hurts the overall presentation.
Trial sequencing is part of defending California employers at trial.
Bifurcation questions employers ask
Does the same jury hear the punitive phase?
Yes. Section 3295(d) requires that financial condition evidence “be presented to the same trier of fact” that found for the plaintiff and found malice, oppression, or fraud. The second phase usually follows immediately, so the employer should have its financial witness ready even if it expects to win.
Can an individual manager use these rules too?
Yes. Section 3295 applies to “any defendant,” so a supervisor sued individually can seek the same protection for personal finances. Coordinating the company’s and the individual’s applications avoids inconsistent rulings.
What if the court denies a section 598 motion?
The trial proceeds on all issues together. The employer can still use jury instructions and the verdict form to separate liability questions from damages, and the section 3295(d) protection still applies to financial evidence.
If your company is preparing for an employment trial
If an employment case against your company is set for trial, decisions about sequencing issues and protecting financial information usually need to be made months before the jury is called. Rosenberger + Kawabata represents employers defending employment lawsuits and claims through its business litigation practice, including claims headed to trial. Contact Rosenberger + Kawabata online for a confidential consultation, or call (310) 894-6921.
Sources
The statutes are Code of Civil Procedure sections 598 and 1048, and Civil Code section 3295.
This post is general information about California and federal employment law as of November 7, 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Employment statutes, regulations, and court decisions change often, and the outcome of any claim depends on its facts. Past results do not guarantee future outcomes.