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.