PMWJ S.B. 1500 75(R)BILL ANALYSIS


JUDICIAL AFFAIRS
S.B. 1500
By: Ellis (Hilbert)
5-19-97
Committee Report (Unamended)


BACKGROUND 

 Currently, a lawsuit that is filed in a justice court or a small claims
court has a $5,000 jurisdictional limit.  In the justice courts, the
$5,000 limit is exclusive of interest but includes court costs and
attorney's fees; in the small claims courts, the $5,000 limit is exclusive
of court costs but includes interest and attorney's fees.  This limits the
ability of most litigants to hire an attorney because the jurisdictional
limit is too low to allow a judgment for both the amount in controversy
and for attorney's fees.  


PURPOSE

 S.B. 1500 authorizes justice and small claims courts to award attorney's
fees of up $2500 in each case.  S.B. 1500 also provides for uniformity in
jurisdiction by providing that attorney's fees, court costs and interest
are exclusive of the $5000 jurisdictional limits in both justice and small
claims courts. 


RULEMAKING AUTHORITY

 It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 


SECTION BY SECTION ANALYSIS

 SECTION 1 amends Section 27.031, Government Code, by amending Subsection
(a) and adding Subsection (c). 
 Subsec. (a) currently provides that the justice court has original
jurisdiction of civil matters in which exclusive jurisdiction is not in
the district or county court and in which the amount in controversy is not
more than $5,000, exclusive of interest; amended language provides that
attorney's fees and court costs are also exclusive of the jurisdictional
limit. 
 New Subsec. (c) provides that a person may be represented by an attorney
in justice court and that the court may award attorney's fees of up to
$2500 in each case. 

 SECTION 2 amends Sections 28.003(a) and (c), Government Code.
 Subsec. (a) currently provides that the small claims court has concurrent
jurisdiction with the justice court in actions by any person for the
recovery of money in which the amount in controversy is not more than
$5,000, exclusive of costs; amended language provides that attorney's fees
and interest are also exclusive of the jurisdictional limit. 
 Subsec. (c) currently provides that a person may be represented by an
attorney in small claims court.  New language provides the court may award
attorney's fees of up to $2500 in each case. 

 SECTION 3. Effective date.  Application of act.

 SECTION 4. Emergency clause.