BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 221|
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THIRD READING
Bill No: SB 221
Author: Simitian (D)
Amended: 5/19/11
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-0, 5/10/11
AYES: Evans, Harman, Blakeslee, Corbett, Leno
SUBJECT : Small claims court: jurisdiction
SOURCE : Author
DIGEST : This bill increases the small claims court
jurisdictional limit from $7,500 to $10,000 in an action
brought by a natural person. This bill, until January 1,
2015, delays operation of this section with respect to
bodily injury claims resulting from vehicle accidents.
Senate Floor Amendments of 5/19/11delay operation of the
small claims jurisdictional limit increase from $7,500 to
$10,000 for claims brought by a natural person for bodily
injuries resulting from vehicle accidents until January 1,
2015, instead of January 1, 2014.
ANALYSIS : Existing law provides that small claims courts
have jurisdiction in an action brought by a natural person,
if the amount of the demand does not exceed $7,500. (Code
of Civil Procedure Section 116.221)
Existing law provides that a natural person may not file
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more than two small claims actions that exceed $2,500 in
any year. (Code of Civil Procedure Section 116.231)
This bill provides that small claims courts have
jurisdiction in an action by a natural person, if the
amount of the demand does not exceed $10,000.
This bill does not impact the limitation on a natural
person filing more than two small claims actions exceeding
$2,500 in any year.
This bill repeals a duplicate provision of Code of Civil
Procedure Section 116.221.
Existing law provides that notwithstanding Section 116.221,
the small claims court has jurisdiction in an action
brought by a natural person for damages for bodily injuries
resulting from an automobile accident if the amount of the
demand does not exceed $7,500.
This bill specifies that this section shall apply only if a
defendant is covered by an automobile insurance policy that
includes a duty to defend.
This bill delays operation of this section until January 1,
2015, only for bodily injury claims resulting from vehicle
accidents.
Prior Legislation
SB 422 (Simitian), Chapter 600, Statutes of 2005, among
other things, raised the small claims court jurisdictional
limit from $5,000 to $7,500.
AB 1459 (Canciamilla), Chapter 618, Statutes of 2005, was
identical to SB 422.
AB 1131 (Ackerman, 2000) and SB 110 (Ackerman, 2001) would
have applied small claims jurisdiction to suits by an
assignee in specified circumstances. AB 1131 was held in
the Senate Judiciary Committee and SB 110 was held in the
Assembly.
SB 1342 (Lockyer, 1997) would have increased the small
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claims court jurisdictional limit to $10,000 in auto
accident cases. The bill was held in the Assembly.
AB 246 (Lempert, 1997) would have increased the small
claims court jurisdictional limit to $7,500. The bill was
vetoed.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 5/19/11)
California Apartment Association
California Association of Realtors
Consumer Attorneys of California
Judicial Council
Laguna Woods Village
ARGUMENTS IN SUPPORT : The author writes: "It is
difficult to find an attorney to represent you in a case
where the amount in dispute is less than $7,500.
Attorney's fees are too high to justify the expense, thus
denying justice to many parties."
In support of this bill, Judicial Council writes, "Ýour]
support for SB 221 takes into account the increasing
difficulty of litigants to find attorneys willing to take
cases valued at $10,000, or even higher, given the rising
costs of litigation. The council is also mindful of the
many challenges faced by self-represented litigants trying
these actions as limited civil cases, which is an
inefficient and burdensome process for the courts as well.
Many litigants with claims in excess of the small claims
limit have nowhere to turn, other than small claims court."
RJG:mw 5/19/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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