Small Claims Court Actions and Parties

In Part 1, Title 1, Chapter 5.5 of the Code of Civil Procedure is the small claims court. Article 3 deals with actions. Section 116.310 provides that no formal pleading, other than the claim, is necessary to initiate a small claims action. Note that the pretrial discovery procedures are not permitted in small claims actions.

Section 116.320 allows a plaintiff to commence an action in the small claims court by filing a claim under oath with the clerk of the small claims court in person, by mail, by facsimile transmission, or by electronic means. The claim form is a simple nontechnical form approved or adopted by the Judicial Council and it has to set forth a place for four specified items. Also, the form or accompanying instructions must include three specified items of information for the plaintiff.

Section 116.330 states that, when a claim is filed, the clerk is required to schedule the case for hearing and must issue an order directing the parties to appear at the time set for the hearing with witnesses and documents to prove their claim or defense. In lieu of the method of setting the case for hearing, at the time a claim is filed the clerk may do all of the three specified actions.

Section 116.340 allows service of the claim and order on the defendant to be made by any one of the four specified methods. Service of the claim and order on the defendant are to be completed at least 15 days before the hearing date if the defendant resides within the county in which the action is filed, or at least 20 days before the hearing date if the defendant resides outside the county in which the action is filed. Moreover, proof of service of the claim and order must be filed with the small claims court at least five days before the hearing.

Service must be made within the state, and the owner of record of real property in California who resides in another state and who has no lawfully designated agent in California for service of process may be served by any of the methods described in this section if the claim relates to that property.

A nonresident owner or operator of a motor vehicle involved in an accident within this state may be served pursuant to the provisions on constructive service of the Vehicle Code without regard to whether the defendant was a nonresident at the time of the accident or when the claim was filed.

Section 116.360 authorizes the defendant to file a claim against the plaintiff in the same action in an amount not to exceed the jurisdictional limits. The claim need not relate to the same subject or event as the plaintiff’s claim. The defendant’s claim must be filed and served in the manner provided for filing and serving a claim of the plaintiff. This must occur at least five days before the hearing date.

Section 116.370  provides that venue and court location requirements in small claims actions are to be the same as in other civil actions. The court may prescribe by local rule the proper court locations for small claims actions. In addition, a defendant may challenge venue or court location by writing to the court and mailing a copy of the challenge to each of the other parties to the action, without personally appearing at the hearing.

In all cases, the court is required to inquire into the facts sufficiently to determine whether venue and court location are proper, and make its determination accordingly. If the court determines that the action was not commenced in the proper venue, the court, on its own motion, must dismiss the action without prejudice, unless all defendants are present and agree that the action may be heard. If the court determines that the action was not commenced in the proper court location, the court may transfer the action to a proper location pursuant to local rule.

On the other hand, if the court determines that the action was commenced in the proper venue and court location, the court may hear the case if all parties are present. If the defendant challenged venue or court location and all parties are not present, the court is required to postpone the hearing for at least 15 days and notify all parties by mail of the court’s decision and the new hearing date, time, and place.

Section 116.390 specifies that, if a defendant has a claim against a plaintiff that exceeds the jurisdictional limits, and the claim relates to the contract, transaction, matter, or event which is the subject of the plaintiff’s claim, the defendant may commence an action against the plaintiff in a court of competent jurisdiction and request the small claims court to transfer the small claims action to that court.

In ruling on a motion to transfer, the small claims court may do any of the three specified actions. If the small claims action is transferred prior to judgment, both actions are to be tried together in the transferee court. When the small claims court orders the action transferred, it must transmit all files and papers to the transferee court.

Article 4 deals with parties in small claims court. Section 116.410 provides that any person who is at least 18 years of age, or legally emancipated, and mentally competent may be a party to a small claims action. A minor or incompetent person may appear by a guardian ad litem appointed by a judge of the court in which the action is filed.

Section 116.420 prohibits the filing of a claim or maintaining a claim in small claims court by the assignee of the claim. However, this section does not prevent the filing or defense of an action in the small claims court by two specified individuals. Also, this section does not prevent the filing in small claims court by a local government which is self-insured for purposes of workers’ compensation and is seeking subrogation under the Labor Code.

Section 116.430 states, if the plaintiff operates or does business under a fictitious business name and the claim relates to that business, the claim must be accompanied by the filing of a declaration stating that the plaintiff has complied with the fictitious business name laws by executing, filing, and publishing a fictitious business name statement as required. Otherwise, such a small claims action must be dismissed without prejudice. The term “fictitious business name” is defined.