California Court System

In California, the Court system to most creditors means a forum for determination of debt, or enforcement of judgments. The courts most commonly used are the Small Claims Courts, Municipal Courts, or Superior Courts. Small Claims Courts, with jurisdiction generally under $5,000, are used for collection of money by individuals and sometimes by local merchants. Attorneys may not appear until after judgment, and small claims suits on assigned accounts are not permitted in Small Claims Courts. In each of the 58 California Counties, "Small Claims Advisors" may be made available to answer questions.

Municipal Courts have jurisdiction over civil claims involving collection of money generally up to the principal sum of $25,000. Actions below the Small Claims limit of $5,000 may be filed in Municipal Courts if a written demand is sent to the debtor at least 10 days before the filing of an action. If this notice, required by California Code of Civil Procedure Section 1033 is not sent, the prevailing creditor may not recover costs and attorney fees. The fee for filing a civil action in Municipal Courts is approximately $82. Each defendant is generally required to pay an appearance fee of a similar amount. Actual filing fees and local rules by county are linked below. Click on "Trial Courts" below.

Once a legal action is filed, each defendant must generally be personally served with a summons and complaint (and, with other documents, such as status conference notices). The fee for service of process varies by area in the state, as well as by process service firm. The variation may be from as low as $17.50 in some small towns or counties, to as high as $90 in some metropolitan areas. Civil documents may also be served by civil agencies of county sheriff departments. If efforts to personally serve are not successful, an order for service by publication may be obtained. Of course, this will add to the expense since reasonable and diligent efforts to locate must be made, and the publication must be completed, generally, in a newspaper in the area where the defendant resided.

Selection of the proper court to file an action may be determined by the residence of the defendant, or the place where the contract was entered. In consumer cases where a creditor is filing the action, it must generally be filed where the alleged debtor resides. Discuss issues such as these with an attorney since other California laws and federal laws, such as the Fair Debt Collection Practices Act, may be considerations in actual cases.

If more information is desired, the California Judicial Council, a judicial branch of California maintains an excellent web site which describes the entire court structure of California, and provides many forms. Click here to learn more about the trial courts, or to find rules, filing fee schedules, and location information for Small Claims Courts, Municipal Courts and Superior Courts.

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Selected California Statutes of Limitation

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A statute of limitations is generally the period during which an action must be commenced by the filing of a lawsuit. Generally, creditor cases may involve breach of an oral or written contract, failure to pay for goods or services sold on an open book account, or an account stated in writing. Illustrations of statutes of limitation are shown below.

 

Oral Contract	Two Years	Code Of Civil Procedure Section 339
Written Contract	Four Years	Code Of Civil Procedure Section 337
Account Stated In Writing	Four Years	Code Of Civil Procedure Section 337
Goods or Services Sold On Open Book Account	Four Years	Code Of Civil Procedure Section 337

In each example, there are rules to determine the date which "starts" the limitation period. This may involve such things as the date of last payment, the date when the contract was "breached", or other issues which should be discussed with an attorney. Also, it generally would certainly not be good policy to allow statutes of limitations be factors in any event. Other equitable considerations, sometimes referred to as "the doctrine of laches", may find the creditor explaining unreasonable delays in taking the action to the Court. On the other hand, in certain instances where the alleged debtor has been absent from the State of California, the period of time during which a lawsuit may be commenced may be extended. Actual cases should be discussed with your attorney.

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"Fast Track" Rules In California Courts

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California Courts have implemented a litigation delay-reduction program referred to generally as "Fast Track" rules. These are rules designed to control time elements after the commencement of a lawsuit to insure that each case progresses toward judgment or other disposition without delay. The requirements and forms required vary by specific courts. In some jurisdictions, a date for a review hearing may be scheduled at the time a complaint is filed.

"Fast Track" rules sometimes cause concerns to creditors where a defendant cannot be located for personal service. However, in most situations, the rules operate to the benefit of creditors by preventing lengthy delays in concluding legal cases.

 

 

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