BILL ANALYSIS                                                                                                                                                                                                    






                             SENATE JUDICIARY COMMITTEE
                           Senator Ellen M. Corbett, Chair
                              2009-2010 Regular Session


          AB 712
          Assemblymember Evans
          As Amended April 13, 2009
          Hearing Date: June 9, 2009
          Code of Civil Procedure
          ADM  
                    

                                        SUBJECT
                                           
                 Small Claims Court Jurisdiction:  Equitable Relief

                                      DESCRIPTION  

          This bill would clarify that a small claims court has  
          jurisdiction over an action for an injunction or other equitable  
          relief only when a statute expressly authorizes a small claims  
          court to award that relief.  This bill would provide that  
          nothing in the Small Claims Act (SCA) is intended to expand, or  
          to encourage the expansion of, the jurisdiction of the small  
          claims court. 

                                      BACKGROUND  

          The SCA established a small claims division in each superior  
          court in the state in order to resolve minor civil disputes in  
          an expeditious, inexpensive, and fair manner.  (Code Civ. Proc.  
          Sec. 116.110 et seq.)  The SCA provides that the small claims  
          court has jurisdiction over civil actions seeking certain forms  
          of relief, including money damages in specified amounts.  The  
          SCA also provides that the court, in actions brought under the  
          SCA, may grant equitable relief in lieu of or in addition to  
          money damages.  However, the SCA does not specifically address  
          actions brought in small claims court under statutes other than  
          the SCA, when those statutes provide for equitable relief in  
          small claims court if the amount in controversy meets the small  
          claims court jurisdictional limits.  This bill would clarify  
          that small claims courts may award equitable relief in such  
          actions.  

                                CHANGES TO EXISTING LAW
                                                                (more)



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           Existing law  provides that the small claims court has  
          jurisdiction in an action brought by a natural person if the  
          amount of the demand does not exceed $7,500.  The jurisdictional  
          limit for all other entities, except as specified, is $5,000.   
          (Code Civ. Proc. Secs. 116.220, 116.221.)
           Existing law  provides that, in any small claims action seeking  
          money damages, 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.   
          (Code Civ. Proc. Sec. 116.220.)

           This bill  would provide that the small claims court has  
          jurisdiction over an action for an injunction or other equitable  
          relief only when a statute expressly authorizes a small claims  
          court to award that relief.

           This bill  would provide that nothing in the SCA is intended to  
          expand, or to encourage the expansion of, the jurisdiction of  
          the small claims court. 

                                        COMMENT
           
          1.    Stated need for the bill  

          The author writes:

            Under current law, various statutes grant a person the right  
            to seek declaratory or injunctive relief in small claims  
            court, but the Small Claims Act does not provide the explicit  
            authority to order such relief.  For example, subdivision (f)  
            of Section 1365.2 of the Civil Code authorizes a person to  
            bring an action in small claims court to inspect and copy  
            homeowner association-related records.  An action to enforce  
            the right to inspect and copy records would be an action for  
            injunctive or declaratory relief.  Similarly, subdivision (c)  
            of Section 1363.09 of the Civil Code allows injunctive relief  
            actions regarding association-related elections to be brought  
            in small claims court if the amount of the demand does not  
            exceed the jurisdiction of that court.

            Unfortunately, the Small Claims Act does not currently contain  
            a catch-all provision that specifically authorizes the small  
            claims court to order equitable relief in cases where such  
            relief has been made available through other statutes.  This  
            bill would, without expanding the jurisdiction of the court,  
                                                                      



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            provide the necessary clarification.

          2.    Statutes which provide for equitable relief and small  
            claims court jurisdiction are not specifically referenced in  
            the SCA; this bill would do so, thus clarifying the small  
            claims court jurisdiction  
           
           This bill would allow small claims courts to provide injunctive  
          or other equitable relief in cases brought in small claims court  
          based upon statutes other than the SCA that specifically provide  
          for equitable relief and small claims court jurisdiction if the  
          demand meets the small claims court jurisdictional limits.  The  
          SCA provides that the court may grant equitable relief in  
          various forms in lieu of or in addition to money damages in an  
          action brought under the SCA.  However, the SCA does not  
          specifically address actions brought in small claims court based  
          upon statutes other than the SCA.  
          The Judicial Council (JC) states that this bill would "clarify  
          the jurisdiction of the small claims court and avoid improper  
          dismissals of cases where statutes other than the Small Claims  
          Act have specifically authorized actions for injunctive or other  
          forms of relief to be brought in court."  The JC also states  
          that AB 712 responds to concerns raised by some small claims  
          advisors and self-help advocates that pro tem small claims  
          officers in several superior courts were reportedly improperly  
          rejecting injunctive relief actions brought under the  
          Davis-Stirling Common Interest Development Law because the SCA  
          does not specifically authorize that relief.  As the author  
          notes, two examples of the need for the bill are two sections of  
          the common interest development law.  The JC also underscores  
          that this bill would not in any way expand or encourage the  
          expansion of small claims court jurisdiction.  


           Support  :  The Judicial Council; California Rural Legal  
          Assistance Foundation; American Federation of State, County, and  
          Municipal Employees; Consumer Attorneys of California;  
          California Alliance for Retired Americas

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known
                                                                      



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           Prior Legislation  :  None Known

           Prior Vote  :

          Assembly Judiciary Committee (Ayes 10, Noes 0)
          Assembly Floor (Ayes 77, Noes 0)


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