SB286 (2006) Detail

Relative to notice to defendants in small claims actions.


SB 286-FN – AS AMENDED BY THE HOUSE

02/16/06 0893s

19Apr2006… 1770h

2006 SESSION

06-2402

09/01

SENATE BILL 286-FN

AN ACT relative to notice to defendants in small claims actions and reducing a surcharge on entry fees for small claims actions.

SPONSORS: Sen. Foster, Dist 13

COMMITTEE: Judiciary

AMENDED ANALYSIS

This bill changes requirements for notice to parties in small claims actions. This bill also reduces a surcharge on entry fees for small claims actions.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/16/06 0893s

19Apr2006… 1770h

06-2402

09/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to notice to defendants in small claims actions and reducing a surcharge on entry fees for small claims actions.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Small Claims Actions; Notice to Defendant. RSA 503:6 is repealed and reenacted to read as follows:

503:6 Notice to Defendant.

I. The court shall cause notice of the claim and the substance thereof to be given to the defendant, whether or not the defendant is a resident of this state, by sending a written statement to the defendant by postpaid first class mail, addressed to the defendant at the defendant’s last known post office address and directing the defendant to indicate, in writing within 30 days from the date said notice is mailed, the defendant’s desire to be heard. The notice shall inform the defendant that failure to respond in writing shall result in the service of the claim on the defendant by the sheriff, or in such other manner as the court shall order, the cost of which shall be the responsibility of the defendant if the plaintiff prevails.

II. If the notice is returned as undelivered, or the defendant does not respond in writing within 30 days, then the court shall direct the plaintiff to complete service on the defendant, at the expense of the plaintiff, as in all other actions at law.

III. If the defendant responds to the notice indicating a desire to be heard, the case shall be scheduled for hearing shortly thereafter. Both parties shall be notified by mail of the date and time of hearing, at least 14 days in advance.

2 Entry Fees; Small Claims Actions. Amend RSA 490:24, II to read as follows:

II. Except for small claims actions as provided in paragraph III, the sum of $20 shall be added to each case entry fee and fee for a motion to bring forward collected in the supreme, superior, district, family, and probate courts, and these sums shall be deposited in the general fund.

III. The sum of $15 shall be added to each case entry fee and fee for a motion to bring forward collected for small claims actions in the district courts, and these sums shall be deposited in the general fund.

3 Effective Date. This act shall take effect July 1, 2006.

LBAO

06-2402

11/2/05

SB 286-FN - FISCAL NOTE

AN ACT requiring first class mail notice to defendants in small claims actions.

FISCAL IMPACT:

The Judicial Branch states this bill will decrease state expenditures by $49,007 in FY 2007 and $98,013 each year thereafter. There will be no fiscal impact on state, county and local revenue or county and local expenditures.

METHODOLOGY:

The Judicial Branch indicates there were 17,684 small claims actions filed in the district courts in calendar year 2004. The Branch stated small claims notices are currently sent to the defendant by certified mail, return receipt requested. This bill proposes that the notices be sent by first class mail. In addition to the savings in postage costs, the Branch assumes clerical time will be saved since the certification and return receipt forms, which take about 5 minutes each to complete, will no longer be prepared. The Branch estimated the savings as follows:

Postage Savings

Current means of notice: Certified, return receipt requested $ 4.42

Proposed means of notice: First Class mail .37

Postage savings per notice: $4.05

Annual Postage Savings (17,684 claims x $4.05) $71,620

Clerical Savings

Court Assistant II (Salary $20,526 + Benefits $9,032) $29,558

Divided by Annual hours worked 1,650

Hourly cost of salary and benefits $17.91

Clerical cost per claim ($17.91 / 60 minutes x 5 minutes/ claim) $1.4925

Annual Clerical Savings (17,684 claims x $1.4925) $26,393

Total Annual Savings $98,013

The Branch states that this bill is effective on January 1, 2007, therefore, the savings would be approximately ½ of the annual amount in FY 2007.