Monday, January 15, 2024
On January 1, 2024, the State Legislature enacted Senate Bill 71 (“SB 71”), which increased California’s jurisdictional limits for civil and small claims cases. These thresholds determine whether a case is filed as a “limited” civil case or “unlimited” civil case, or if it falls within the jurisdiction of the small claims court, based on the amount of damages the plaintiff is seeking.
Prior to SB 71, the jurisdictional limits were lower for both small claims and unlimited civil cases in California. SB 71 increases the jurisdictional limit for small claims from $10,000 to $12,500 for cases filed by individuals and $5,000 to $6,250 for corporations (such as homeowners associations). Furthermore, the amount in controversy for an action to be treated as a limited civil case has risen from $25,000 to $35,000. Therefore, any lawsuit asking for more than $35,000 will be treated as “unlimited.”
With SB 71 in effect today, homeowners now have the ability to sue in a small claims court for larger amounts without an attorney. It also means that associations may utilize small claims court to recover fines, collect assessments, etc., up to $6,250, as opposed to $5,000.
It is always critical to check local court rules regarding these and other limitations/regulations, as they may vary. As always, we are dedicated to helping you navigate these and the many other changes in the law, as smoothly as possible.