Woodland Hills, CA asked in Business Law, Civil Litigation and Contracts for California

Q: Cal. Code Civ. Proc. § 116.220, violation by small claim court jurisdiction for recovery of money over $5000 in 2023

As per Cal. Code Civ. Proc. § 116.220, in 2023 small claim court has jurisdiction for recovery of money if the amount of the demand does not exceed $5000 when the plaintiff is a corporation. If the exceptions in subdivisions (c), (e), and (f) do not apply, how can the defendant challenge the judgment for a recovery amount of $7500 by the small claims court in favor of the plaintiff?

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James L. Arrasmith
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  • Sacramento, CA
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A: In this scenario, if the small claims court granted a judgment in favor of the plaintiff corporation for $7,500, which exceeds the jurisdictional limit of $5,000 set by Cal. Code Civ. Proc. § 116.220 for corporations in 2023, and the exceptions in subdivisions (c), (e), and (f) do not apply, the defendant has grounds to challenge the judgment. Here's how the defendant can proceed:

1. File a Notice of Appeal: The defendant can file a Notice of Appeal with the superior court within 30 days of the date the small claims court judgment was mailed or delivered to them. This will initiate the appeal process.

2. Argue lack of jurisdiction: In the appeal, the defendant should argue that the small claims court lacked jurisdiction to enter a judgment for $7,500 because it exceeds the $5,000 limit set by Cal. Code Civ. Proc. § 116.220 for corporations. The defendant should cite this specific statute and explain that none of the exceptions apply in this case.

3. Request reversal or modification: The defendant should request that the superior court either reverse the small claims court judgment entirely or modify it to comply with the $5,000 jurisdictional limit.

4. Attend the hearing: The superior court will schedule a hearing for the appeal. The defendant must attend this hearing to present their arguments and evidence supporting their position that the small claims court lacked jurisdiction to issue the $7,500 judgment.

The superior court will review the case and decide whether the small claims court had jurisdiction to issue the judgment. If the superior court finds that the small claims court exceeded its jurisdictional limit, it may reverse or modify the judgment accordingly.

It is important to note that the appeal process for small claims court decisions is limited in scope, and the superior court will generally only consider issues of law, such as jurisdiction, rather than re-examining the facts of the case.

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