New Rules Adopted for Simple Civil Collection Cases in California

In a major new decision in administrative policy adopted by the California Judicial Council, changes in the way simple civil collection matters are handled in court will save much wasted time in useless and needless appearances, reducing the public cost of such cases and increasing the efficiencies of the courts.

Under the new rules effective July 1, 2007, collection cases valued at not more than $25,000 arising from a transaction in which property, services, or money were acquired on credit from a business or person will become categorized separately and handled more efficiently under a new Rule of Court.

Noting that nearly 95% of these cases go to default anyway, William Goldsmith, president of the California Creditors Bar Association (CalCBA), explains, "Now, instead of treating these simple cases like major litigation as they have for the past 10 years, the new rules will free up the court calendar and save the courts’, attorneys’, and the litigants’ time."

CalCBA (wwwcalcba.org) is a specialty bar association formed three years ago which represents creditors and their legal counsel. Members of the non-profit CalCBA include leading commercial and retail creditors rights attorneys whose focus is to help educate the legal community and the public on best practices in this area.

Initiated by the CalCBA, the new rules were developed by a working group appointed by the California Judicial Council that included representatives of the judiciary, court administrative staff, legislature, attorneys, and a consumer rights association. The new rules also allow plaintiffs more time to serve debtors, to obtain default judgment, and automatic continuances without time-wasting court calendaring and attorney appearances for these simple matters.

"The significant rule changes benefit all parties, including California taxpayers," adds Brian Winn, past president of CalCBA. "It saves a great deal of Judges and clerks’ court time in not having to deal with needless appearances, for consumers in not having to appear in court for what in the past were basically administrative hearings having no bearing upon the substance of a case, for attorneys by not having to appear in court personally on matters that are already working their way through the system, and, finally, for clients by not being forced to dismiss suits unfairly by arbitrary rules, and who will now be able to make intelligent decisions whether to go forward with their matters with a reasoned approach."

The complete Report details and Form can be accessed at www.calcba.org/collections_cases_service_and_case_management.pdf

Further, a statewide standard for all California courts and counsel as to what documents and declarations are necessary on purchased debt to obtain judgments is being developed.