SMALL CLAIMS COURT JURISDICTION S.B. 786 (S-1): FLOOR ANALYSIS


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Senate Bill 786 (Substitute S-1 as reported)
Sponsor: Senator Wayne Kuipers
Committee: Judiciary

CONTENT
The bill would amend the Revised Judicature Act to increase the size of claims over which the Small Claims Division of District Court (small claims court) has jurisdiction.


The Act creates a small claims court in each district court. The jurisdiction of the small claims court is limited to cases for the recovery of money in which the amount claimed does not exceed $3,000. The bill would increase that limit to $6,000.


The bill would take effect 90 days after its enactment.


MCL 600.8401 Legislative Analyst: Patrick Affholter

FISCAL IMPACT
The bill would have an indeterminate fiscal impact on State and local government. The bill could shift cases not currently in small claims court to that division, and also could lead to the filing of a greater number of these cases. Any increase in the overall number of cases filed would strain existing court resources; however, small claims cases tend to cost less and be processed more quickly than other civil cases, so any increase in cases could be offset by greater efficiencies in processing. The limit for small claims cases was last increased as of January 1, 2000, from $1,750 to $3,000.


Date Completed: 12-5-07 Fiscal Analyst: Stephanie Yu

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb786/0708