California Code of Civil Procedure 116.420 – (a) No claim shall be filed or maintained in small claims court …
(a) No claim shall be filed or maintained in small claims court by the assignee of the claim.
(b) This section does not prevent the filing or defense of an action in the small claims court by (1) a trustee in bankruptcy in the exercise of the trustee’s duties as trustee, or (2) by the holder of a security agreement, retail installment contract, or lien contract subject to the Unruh Act (Chapter 1 (commencing with Section 1801) of Title 2 of Part 4 of Division 3 of the Civil Code) or the Automobile Sales Finance Act (Chapter 2b (commencing with Section 2981) of Title 14 of Part 4 of Division 3 of the Civil Code), purchased by the holder for the holder’s portfolio of investments, provided that the holder is not an assignee for the purpose of collection.
Terms Used In California Code of Civil Procedure 116.420
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Contract: A legal written agreement that becomes binding when signed.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Trustee: A person or institution holding and administering property in trust.
(c) This section does not prevent the filing in small claims court by a local government which is self-insured for purposes of workers’ compensation and is seeking subrogation pursuant to § 3852 of the Labor Code.
(Amended by Stats. 1994, Ch. 231, Sec. 1. Effective January 1, 1995.)