On July 7, 2011 Governor Brown approved Senate Bill 221. This Bill increases the small claims court jurisdiction to $10,000, except as specified in the Bill.
SB 221 does not state expressly when it will become effective. Currently, the jurisdictional limit for small claims matters brought by natural persons (not corporations or similar entities) is $7,500 and $5,000 for entities. Other limitations on the number and type of matters that may be filed exist, which should be considered by reviewing applicable law. County court websites are a good place to start, as is your local law library.
Small claims court is generally a good venue to have disputes resolved without resort to more expensive and time consuming litigation frequently inherent in general civil actions. This Bill may help sole-proprietorships who can sue as a natural person and other individuals, to have a greater range of disputes resolved in small claims court.
As always, it is advisable to contact an attorney to discuss how any law may apply to any particular situation or business issue/contract.
