Revision: March 31, 2009, midnight
HB 281-FN – AS AMENDED BY THE HOUSE
04Mar2009… 0542h
2009 SESSION
09/03
HOUSE BILL 281-FN
AN ACT increasing the maximum amount of debt or damages for small claims actions and requiring mediation for small claims actions exceeding $5,000 and establishing a fee for the cost of such mediation.
SPONSORS: Rep. Chandler, Carr 1; Rep. Dokmo, Hills 6; Rep. Campbell, Hills 24
This bill increases the maximum amount of debt or damages for small claims actions. The bill also requires mediation for small claims actions exceeding $5,000 and establishes a fee for the cost of such mediation.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
04Mar2009… 0542h
09-0293
09/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT increasing the maximum amount of debt or damages for small claims actions and requiring mediation for small claims actions exceeding $5,000 and establishing a fee for the cost of such mediation.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Small Claims Actions; Maximum Amount of Debt or Damages. Amend RSA 503:1, I to read as follows:
I. A small claim is any right of action not involving the title to real estate in which the debt or damages, exclusive of interest and costs, does not exceed [$5,000] $7,500.
2 New Paragraph; Mediation Required. Amend RSA 503:1 by inserting after paragraph III the following new paragraph:
IV. When the amount of debt or damages exceeds $5,000 and no claim is made for trial by jury under paragraph III, the parties to the action shall be required to participate in a mediation program in the district courts approved by the office of mediation and arbitration established under RSA 490-E. If mediation of such action does not result in resolution of the action, the case shall be presented to the judge under oath.
3 Small Claims Exceeding $5,000; Mediation Fee. RSA 503:4, II is repealed and reenacted to read as follows:
II. The sum of $5 shall be added to each entry fee collected in the district courts for small claims actions in which the amount of debt or damages is $5,000 or less and the sum of $60 shall be added to each entry fee collected in the district courts for small claims actions in which the amount of debt or damages exceeds $5,000. Such sums shall be deposited in the mediation and arbitration fund established under RSA 490-E:4.
4 Effective Date. This act shall take effect January 1, 2010.
LBAO
09-0293
Amended 03/27/09
HB 281 FISCAL NOTE
AN ACT increasing the maximum amount of debt or damages for small claims actions and requiring mediation for small claims actions exceeding $5,000 and establishing a fee for the cost of such mediation.
FISCAL IMPACT:
The Judicial Branch states this bill, as amended by the House (Amendment #2009-0542h), will have an indeterminable effect on state revenues and expenditures in FY 2010 and each year thereafter. This bill will have no fiscal impact on county and local revenues or expenditures.
METHODOLOGY:
The Judicial Branch states this bill increases the maximum amount of debt or damages for small claims actions from $5,000 to $7,500, requires mediation for small claims actions exceeding $5,000, and establishes a fee for such mediation. The Branch states this bill will have an indeterminable effect on state revenues and expenditures.
In 2007, the Branch states 5,314 civil writs involving claims from $1 to $25,000 were filed in the District Court. Although there is no data available detailing how many of the writs filed were for amounts between $5,000 and $7,500, for which the proposed legislation would have provided the option of filing as a small claim; for small claim in excess of $5,000 filed, a $60 fee would be charged and deposited into the mediation and arbitration fund increasing state revenues. Small claims arbitrators are paid $60 from this fund for each case arbitrated. Although all small claims in excess of $5,000 would be charged the $60 fee, some of the small claims in excess of $5,000 would not require mediation. This would provide an indeterminable net gain to the arbitration and mediation fund.
Based on the New Hampshire Judicial Needs Assessment done by the National Center for State Courts, the average small claims case takes .6 minutes less than the average civil writ. For FY 2010 and the years thereafter, the per/minute cost for judicial time is $1.6195 which equates to $.97 savings per case (1.6195 x .6 minutes = $.97). Based on case weights developed by the National Center for State Courts in the New Hampshire Court Staff Needs Assessment Study, a small claim takes 50 minutes less clerical time than a civil writ. For FY 2010 and the years thereafter, the per/minute cost for clerical time using an average clerical level of a court assistant III is $.3775. This equates to a savings of $18.88 (50 minutes x $.3775 = $18.88) for each civil writ filed as a small claim. Aggregately, each civil writ filed as a small claim would reduce state expenditures by an estimated average of $19.85.