SRC-SLL S.B. 1500 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1500
By: Ellis
Jurisprudence
4-10-97
As Filed


DIGEST 

Currently, a lawsuit that is filed in a justice court or a small claims
court has a $5,000 jurisdictional limit.  This $5,000 limit is exclusive
of interest and costs but includes 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.  The proposed legislation would exclude
attorney's fees from the jurisdictional limit of the justice and small
claims court cases filed in justice of the peace courts.  In addition,
this bill would provide a cap of $2,500 on attorney's fees in each case. 

PURPOSE

As proposed, S.B. 1500 sets forth regulations regarding the awarding of
attorney's fees in justice and small claims court. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 27.031, Government Code, by amending Subsection
(a) and adding Subsection (c), to provide 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, attorney's fees and costs.
Authorizes a person to be represented by an attorney in justice court.
Prohibits the court from awarding attorney's fees of more than $2,500 in
each case. 

SECTION 2. Amends Sections 28.003(a) and (c), Government Code, to provide
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 interest,
attorney's fees, and costs.  Makes a conforming change. 

SECTION 3. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 4. Emergency clause.