THE SENATE

S.B. NO.

427

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to small claims division of the district court.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The purpose of this Act is to:

     (1)  Establish exclusive jurisdiction of the small claims division of the district court over cases in which the amount claimed is $1,000 or less exclusive of interest and costs;

     (2)  Expand the small claims division's jurisdiction over personal property cases to include any personal property worth $5,000 of less; and

     (3)  Make clarifying and housekeeping amendments.

     SECTION 2.  Section 633-27, Hawaii Revised Statutes, is amended to read as follows:

     "§633-27  District courts; powers.  (a)  All district courts, except as otherwise provided, shall exercise jurisdiction conferred by this chapter, and while sitting in the exercise of that jurisdiction, shall be known and referred to as the small claims division of the district court; provided that the jurisdiction of the court when sitting as a small claims division of the district court shall be confined to:

     (1)  Cases for the recovery of money only where the amount claimed [does not exceed $5,000 exclusive of interest and costs, except as provided by section 633‑30;] is $1,000 or less exclusive of interest and costs;

     (2)  Cases for the recovery of money where the amount claimed is more than $1,000 but does not exceed $5,000 exclusive of interest and costs, except as provided by section 633-30;

    [(2)] (3)  Cases involving disagreement between landlord and tenant about the security deposit in a residential landlord-tenant relationship; and

    [(3)] (4)  Cases for the return of [leased or rented] personal property worth [less than] $5,000 [where the amount claimed owed for that lease or rental is less than $5,000 exclusive of interest and costs.] or less.

     (b)  This chapter shall not abridge or affect the jurisdiction of the district courts under [paragraphs (1) and (3)] subsection (a)(2) and (4) to determine cases under the ordinary procedures of the court, it being optional with the plaintiff in the cases to elect the procedure of the small claims division of the district court or the ordinary procedures, as provided by rule of court.

     (c)  No case filed in the small claims division [after December 31, 1991,] shall be removed from the small claims division to be heard under the ordinary procedures of the district court unless the removal is agreed to by the plaintiff.

     (d)  In cases arising under [paragraph (2),] subsection (a)(1) or (3), the jurisdiction of the small claims division of the district court shall be exclusive; provided that the district court, having jurisdiction over a civil action involving [summary possession,] a residential landlord-tenant relationship, shall have concurrent jurisdiction with the small claims division of the district court over any security deposit dispute [between landlord and tenant in a residential landlord-tenant relationship].  This subsection shall not abrogate or supersede sections 604-5, 633-30, and 633-31.

     [(b)] (e)  Actions shall be commenced in the small claims division of the district court of the judicial circuit in which the defendant or a majority of the defendants reside or the claim for relief arose, unless service cannot be made on all of the defendants in that circuit, in which case action may be commenced in any circuit in which all of the defendants can be served; provided that actions arising under [paragraph (2) of] subsection [(a) of this section] (a)(3) shall be commenced in the circuit wherein the rental premises are situated.

     [(c)] (f)  The small claims division of the district court may grant monetary relief and equitable relief except that:

     (1)  Monetary relief shall not include punitive damages; and

     (2)  Except as specifically provided in section 633-8, equitable relief shall be granted only as between parties to a landlord-tenant disagreement pursuant to chapter 521, and shall be limited to orders to repair, replace, refund, reform, and rescind.

     [(d)] (g)  Class actions are prohibited in the small claims division of the district court."

     SECTION 3.  Section 633-28, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Actions shall be commenced and conducted in the small claims division of the district court as provided by the rules of court.  The clerk of the court, at the request of an individual, shall prepare the papers required to be filed in an action in the court, but the clerk's services in the preparation of these papers shall not be available to a corporation, partnership, or association, or to any individual proprietorship.  The mode of service shall be:

     (1)  As provided by law or rule of court for cases in the district courts; provided that for any small claims action, service may be made by one of the parties to the action by means of personal service to the other parties, on the condition that:

         (A)  The party being served signs that party's name to indicate actual receipt of service; or

         (B)  A competent witness, who is not an employee, family member, or agent of the plaintiff appears at a hearing on the matter or provides a notarized affidavit testifying that personal service on the party sought to be served was accomplished in the witness' presence;

     (2)  As to actions arising under [paragraphs (1) and (3) of section 633-27(a),] section 633-27(a)(1), (2), and (4), by registered mail or by certified mail with return receipt signed by the addressee showing delivery within the circuit; or

     (3)  As to actions arising under [paragraph (2) of section 633-27(a),] section 633-27(a)(3), by registered mail or by certified mail with return receipt signed by the addressee showing delivery at any place within or without the State.

There shall be no appeal from a judgment of the small claims division, but the court, sitting as the small claims division, may alter or set aside any judgment as provided by the rules of court."

     SECTION 4.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2017.

 

INTRODUCED BY:

_____________________________

 

 

 

 

 

 


 


 

Report Title:

Small Claims Division of the District Court; Jurisdiction

 

Description:

Establishes the exclusive jurisdiction of the small claims division of the district court over cases in which the amount claimed is $1,000 or less exclusive of interest and costs.  Expands the small claims division's jurisdiction over personal property cases to include any personal property worth $5,000 or less.

 

 

 

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