SENATE BILL REPORT

SSB 5952

BYSenate Committee on Law & Justice (originally sponsored by Senators Pullen, Talmadge and Nelson)

Changing provisions relating to small claims.

Senate Committee on Law & Justice

Senate Hearing Date(s):February 9, 1989; February 20, 1989

Majority Report:  That Substitute Senate Bill No. 5952 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Madsen, Nelson; Rasmussen, Talmadge.

Senate Staff:Joyce Ansley (786-7418)

                  March 17, 1989

AS PASSED SENATE, MARCH 14, 1989

BACKGROUND:

Small claims courts are a distinct department of the district court system.  The primary purpose of small claims courts is to simplify the court process for civil disputes of claims under $2000.  Small claims proceedings are generally conducted in an informal manner without formal pleadings.  Attorneys are generally not permitted to be involved in the proceedings.

There is belief that the court should provide the parties with greater information about the claims process, that payment procedures be delineated, and that the filing fee be raised.

Concern exists that some individuals who have been awarded money judgments in small claims court have had difficulty collecting on the judgments.

It is suggested that the filing fee be increased, that an informational brochure be made available to the plaintiff and defendant, and that the court send the absent judgment debtor notice of the judgment and payment deadline.

It is also suggested that those who are unable to collect on the judgment within the specified time be permitted to receive some of the costs of enforcing the judgment.

SUMMARY:

The small claims court filing fee is raised from $10 to $12.

The court is required to give the small claims informational brochure to the plaintiff at the time of filing.  The court must also send an informational brochure to the defendant with the notice of the claim.

If the debtor is not present at the time of the judgment, the court will mail a copy of the judgment to the debtor with a payment form stating that full payment within 20 days is required.

The court is also required to provide the judgment creditor with a return envelope for transmitting a completed payment form which must be returned to the court within 15 days after the debtor has paid in full.

If the debtor does not pay the judgment within the time limit specified, the creditor may, in an enforcement action, receive the amount of the judgment owed plus reasonable attorneys' fees or reasonable collectors service fees incurred in enforcing the judgment.  The reasonableness of collection service fees is to be determined by the court under the same standards as for attorneys' fees.  The amount of fees awarded may not exceed one-half of the amount of the judgment.

Where a small claims judgment creditor has assigned the judgment to a collection service in seeking collection, the assignee may not receive any of the enforcement costs added to the small claims judgment.

An award of attorneys' fees under this section precludes an award of attorneys' fees permitted elsewhere in the enforcement of judgments section.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 17, 1989

Senate Committee - Testified: Benita McCormick, Washington Collectors Association; Joanne Moore, Evergreen Legal Services; James Heller, District and Municipal Court Judges Association