BILL NUMBER: AB 771 CHAPTERED
BILL TEXT
CHAPTER 240
FILED WITH SECRETARY OF STATE AUGUST 4, 1998
APPROVED BY GOVERNOR AUGUST 3, 1998
PASSED THE ASSEMBLY JULY 20, 1998
PASSED THE SENATE JULY 9, 1998
AMENDED IN SENATE JUNE 23, 1998
AMENDED IN ASSEMBLY JANUARY 22, 1998
AMENDED IN ASSEMBLY JANUARY 12, 1998
AMENDED IN ASSEMBLY JANUARY 5, 1998
INTRODUCED BY Assembly Member Margett
FEBRUARY 26, 1997
An act to amend Sections 116.220 and 116.570 of the Code of Civil
Procedure, relating to small claims court.
LEGISLATIVE COUNSEL'S DIGEST
AB 771, Margett. Small claims court: jurisdiction.
Existing law specifies the jurisdiction of the small claims court
to include various actions in which the demand does not exceed
$5,000, with specified exceptions. This jurisdiction also includes
defendant guarantors who are required to respond based upon the
default, actions, or omissions of another, if the demand does not
exceed $2,500.
This bill would increase the small claims court's jurisdiction
over defendant guarantors to $4,000, provided the action is filed on
or after January 1, 2000, and the defendant guarantor charges a fee
for their guarantor or surety services. The bill would require the
court, on one occasion, to grant a postponement of the hearing date
upon written request of the defendant guarantor, as specified. The
bill would also make a statement of legislative intent and related
changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares that it is necessary
and appropriate to increase the jurisdictional limit in the small
claims court for claims against defendant guarantors who charge a fee
for their guarantor or surety services in order to provide the
parties with a more economical means of litigating these types of
disputes, and to provide the benefits of the contract to the person
paying a fee for the guarantor or surety services.
SEC. 2. Section 116.220 of the Code of Civil Procedure is amended
to read:
116.220. (a) The small claims court shall have jurisdiction in
the following actions:
(1) Except as provided in subdivisions (c), (e), and (f), for
recovery of money, if the amount of the demand does not exceed five
thousand dollars ($5,000).
(2) Except as provided in subdivisions (c), (e), and (f), to
enforce payment of delinquent unsecured personal property taxes in an
amount not to exceed five thousand dollars ($5,000), if the legality
of the tax is not contested by the defendant.
(3) To issue the writ of possession authorized by Sections 1861.5
and 1861.10 of the Civil Code if the amount of the demand does not
exceed five thousand dollars ($5,000).
(4) To confirm, correct, or vacate a fee arbitration award not
exceeding five thousand dollars ($5,000) between an attorney and
client that is binding or has become binding, or to conduct a hearing
de novo between an attorney and client after nonbinding arbitration
of a fee dispute involving no more than five thousand dollars
($5,000) in controversy, pursuant to Article 13 (commencing with
Section 6200) of Chapter 4 of Division 3 of the Business and
Professions Code.
(b) In any action seeking relief authorized by subdivision (a),
the court may grant equitable relief in the form of rescission,
restitution, reformation, and specific performance, in lieu of, or in
addition to, money damages. The court may issue a conditional
judgment. The court shall retain jurisdiction until full payment and
performance of any judgment or order.
(c) Notwithstanding subdivision (a), the small claims court shall
have jurisdiction over a defendant guarantor who is required to
respond based upon the default, actions, or omissions of another,
only if the demand does not exceed (1) two thousand five hundred
dollars ($2,500), or (2) on and after January 1, 2000, four thousand
dollars ($4,000), if the defendant guarantor charges a fee for its
guarantor or surety services.
(d) In any case in which the lack of jurisdiction is due solely to
an excess in the amount of the demand, the excess may be waived, but
any waiver shall not become operative until judgment.
(e) Notwithstanding subdivision (a), in any action filed by a
plaintiff incarcerated in a Department of Corrections facility or a
Youth Authority facility, the small claims court shall have
jurisdiction over a defendant only if the plaintiff has alleged in
the complaint that he or she has exhausted his or her administrative
remedies against that department, including compliance with Sections
905.2 and 905.4 of the Government Code. The final administrative
adjudication or determination of the plaintiff's administrative claim
by the department may be attached to the complaint at the time of
filing in lieu of that allegation.
(f) In any action governed by subdivision (e), if the plaintiff
fails to provide proof of compliance with the requirements of
subdivision (e) at the time of trial, the judicial officer shall, at
his or her discretion, either dismiss the action or continue the
action to give the plaintiff an opportunity to provide such proof.
(g) For purposes of this section, "department" includes an
employee of a department against whom a claim has been filed under
this chapter arising out of his or her duties as an employee of that
department.
SEC. 3. Section 116.570 of the Code of Civil Procedure is amended
to read:
116.570. (a) Any party may submit a written request for
postponement of a hearing date.
(1) The written request may be made either by letter or on a form
adopted or approved by the Judicial Council.
(2) On the date of making the written request, the requesting
party shall mail or personally deliver a copy to each of the other
parties to the action.
(3) (A) If the court finds that the interests of justice would be
served by postponing the hearing, the court shall postpone the
hearing, and shall notify all parties by mail of the new hearing
date, time, and place.
(B) On one occasion, upon the written request of a defendant
guarantor, the court shall postpone the hearing for at least 30 days,
and the court shall take this action without a hearing. Nothing in
this subparagraph, however, shall limit the discretion of the court
to grant additional postponements under subparagraph (A).
(4) The court shall provide a prompt response by mail to any
person making a written request for postponement of a hearing date
under this subdivision.
(b) If service of the claim and order upon the defendant is not
completed within the number of days before the hearing date required
by subdivision (b) of Section 116.340, and the defendant has not
personally appeared and has not requested a postponement, the court
shall postpone the hearing for at least 15 days. If a postponement
is ordered under this subdivision, the clerk shall promptly notify
all parties by mail of the new hearing date, time, and place.
(c) Nothing in this section limits the inherent power of the court
to order postponements of hearings in appropriate circumstances.
(d) A fee of ten dollars ($10) shall be charged and collected for
the filing of a request for postponement and rescheduling of a
hearing date after timely service pursuant to subdivision (b) of
Section 116.340 has been made upon the defendant.