BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   AB 712|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                    CONSENT


          Bill No:  AB 712
          Author:   Evans (D)
          Amended:  4/13/09 in Assembly
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  5-0, 6/9/09
          AYES:  Corbett, Harman, Florez, Leno, Walters

          ASSEMBLY FLOOR:  77-0, 4/27/09 (Consent)  See last page for  
            vote


           SUBJECT  :    Small claims court:  equitable relief

           SOURCE  :     Author


           DIGEST  :    This bill clarifies 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  
          provides that nothing in the Small Claims Act is intended  
          to expand, or to encourage the expansion of, the  
          jurisdiction of the small claims court. 

           ANALYSIS  :    

          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 of Civil Procedure Sections  
                                                           CONTINUED





                                                                AB 712
                                                                Page  
          2

          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 of Civil Procedure Section 116.220.)

          This bill provides 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 provides 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 of Civil Procedure Section 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 clarifies that small claims courts may award equitable  
          relief in such actions.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/10/09)

          American Federation of State, County, and Municipal  
          Employees
          California Alliance for Retired Americas

                                                           CONTINUED





                                                                AB 712
                                                                Page  
          3

          California Rural Legal Assistance Foundation
          Consumer Attorneys of California
          The Judicial Council


           ARGUMENTS IN SUPPORT  :    The author's office states, under  
          current law, various statutes grant a person the right to  
          seek declaratory or injunctive relief in small claims  
          court, but the SCA 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, without expanding the jurisdiction of  
          the court, provides the necessary clarification.

           ARGUMENTS IN OPPOSITION  :     


           ASSEMBLY FLOOR  :  
           AYES:  Adams, Ammiano, Anderson, Arambula, Beall, B.  
            Berryhill, T. Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon, De Vore,  
            Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Krekorian, Lieu, Logue,  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielson, J. Perez, V.M. Perez, Portantino, Price,  
            Ruskin, Salas, Silva, Skinner, Smyth, Solorio,  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  

                                                           CONTINUED





                                                                AB 712
                                                                Page  
          4

            Villines, Yamada, Bass


          RJG:do  6/10/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****





































                                                           CONTINUED