SB 74-FN – AS INTRODUCED
2009 SESSION
09/04
SENATE BILL 74-FN
This bill requires mediation 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0991
09/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT requiring mediation for small claims actions.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Litigation of Small Claims; Process; Mediation Required. Amend RSA 503:3 to read as follows:
503:3 Process. An action on a small claim may be commenced by filing an application in the district or municipal court having jurisdiction. The application may be filed by a person or his authorized attorney and shall set forth a statement of the claim, including the names of the parties involved, the residence of each party, the basis of the claim, and the amount alleged to be due. Upon the filing of such an application and the payment of the required fee, the clerk shall set a time and place for hearing. Upon the filing of such an application and the payment of the required fee, the clerk shall set a time and place for mediation. If the mediation is unsuccessful, the clerk shall set a time and place for hearing.
2 Effective Date. This act shall take effect January 1, 2010.
LBAO
09-0991
02/04/09
SB 74-FN - FISCAL NOTE
AN ACT requiring mediation for small claims actions.
FISCAL IMPACT:
The Judicial Branch states this bill may increase state general fund expenditures by $100,982 in FY 2010 and $201,964 in FY 2011 and each year thereafter. This bill may increase state restricted expenditures by $78,810 in FY 2010 and $157,620 in FY 2011 and each year thereafter. This bill has no fiscal impact on state, county, and local revenues or county and local expenditures.
METHODOLOGY:
The Judicial Branch states this bill will amend RSA 503:3 to require the clerk of each district court to set a time and place for mediation upon the filing of all small claims cases. This bill will increase expenditures for additional clerical and mailing costs and payment to mediators.
The Branch states in calendar year 2007 16,602 small claims were filed. Each case requires 30 minutes of clerical time at a cost of $0.3775 per minute totaling $188,018 (16,602 claims * 30 minutes per claim * $0.3775 per minute). Each case will require a minimum of 2 mailings, assuming a single plaintiff and defendant, totaling $13,946 in mailing costs (16,602 cases * 2 mailings * $0.42 per mailing). The Branch states this bill may increase general fund expenditures by $100,982 in FY 2010 and $201,964 in FY 2011 and each year thereafter.
The Branch states not all cases filed will result in mediation or hearings. The cost of mediation can be estimated by taking the number of small claims cases scheduled for hearings and subtracting the cases that have elected the voluntary mediation program instead of a hearing. In FY 2008 there were 3,731 small claims cases scheduled for hearings in which 1,104 opted for mediation and 2,627 did not. If all cases were scheduled for mediation the Branch would incur additional mediation costs of $60 per case for the remaining 2,627 cases mentioned previously, or $157,620. The Branch states this bill may increase state mediation and arbitration fund expenditures by $78,810 in FY 2010 and $157,620 in FY 2011 and each year thereafter.
This bill does not appropriate funds or establish positions.