Governor Signs New Law To Help HOA Homeowners In Small Claims Court
The Governor signed AB 712 Sunday night – a new law making it clear to small claims court judges that homeowners can sue in small claims court for equitable or injunctive relief.
AB 712 amends the Small Claims Court Act [Code of Civil Procedure 116.220] making it clear that the court has the authority to order the association comply the laws on records and elections.
1)Establishes small claims court in order to resolve minor
civil disputes expeditiously, inexpensively, and fairly.
(Code of Civil Procedure Section 116.110 et seq. All further
statutory references are to that code unless otherwise
stated.
2) Provides that the monetary jurisdiction for natural persons
in small claims court for a single claim is $7,500. The
jurisdictional limit for all other entities, except as
specified, is $5,000. Provides that in any small claims
action seeking money damages, the court may grant equitable
relief in the form of recision, restitution, reformation and
specific performance, in lieu of, or in addition to, money
damages. (Sections 116.210-116.221.)
3) Provides that a member of a common interest development
association may bring an action for declaratory or equitable
relief for failure to comply with laws regarding elections
and meetings of the association. Provides for a civil
penalty of up to $500 for each violation. Provides that
certain of these actions may be brought in small claims court
if the amount of the demand does not exceed the small claims
court jurisdictional limits. (Civil Code Section 1363.09.)
4) Provides that a common interest development association must
make specified records available to its members to inspect
and copy. Provides that a member may bring an action to
enforce this right. Provides for a civil penalty of up to
$500 for each violation. Provides that an action to enforce
this right may be brought in small claims court if the amount
of the demand does not exceed the small claims court
jurisdictional limits. (Civil Code Section 1365.2.)
From the Analysis of the bill:
COMMENTS : This non-controversial bill clarifies that when
statutes have independently provided small claims court with
authority to grant equitable relief, the small claims court
does indeed have that authority. According to the author:
"This bill would provide a necessary fix to ensure consistency
and clarity between the Small Claims Act and statutes
independently authorizing the small claims court to provide
injunctive or equitable relief."
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