BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 221| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SB 221 Page 2 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 CONTINUED SB 221 Page 3 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 **** END **** CONTINUED SB 221 Page 4 CONTINUED