A.R.S. tit. 22 ch. 5 — Arizona Revised Statutes Title 22 Chapter 5 — Small Claims Divisions Of Justice Courts

22-501. Definition In this chapter, unless the context otherwise requires, "small claims division" means a forum in justice courts in which procedures shall allow the inexpensive, speedy and informal resolution of small claims. 22-502. Establishment of small claims division There is established in each justice court a division designated as the small claims division. 22-503. Jurisdiction; exceptions A. The small claims division has concurrent original jurisdiction with the justice court in all civil actions in which the debt, damage, tort, injury or value of the personal property claims either by the plaintiff or defendant does not exceed $5,000, exclusive of interest and costs, and in actions in which a party seeks to disaffirm, avoid or rescind a contract, or seeks equitable relief, and the amount at issue does not exceed $5,000. B. The small claims division does not have jurisdiction over the following: 1. Those matters excluded from justice court jurisdiction as provided in section 22-201. 2. Actions involving claims of defamation by libel or slander. 3. Actions in forcible entry, forcible detainer or unlawful detainer. 4. Actions for specific performance. 5. Actions brought or defended on behalf of a class. 6. Actions requesting or involving prejudgment remedies. 7. Actions involving injunctive relief. 8. Traffic violations and other criminal matters. 9. Actions against this state, its political subdivisions or an officer or employee of the state or its political subdivisions in his official capacity. 22-504. Transfer to justice court A. If any party whose rights are or may be adjudicated by an action in the small claims division, at least ten days before the time set for hearing objects to the proceedings being held in the small claims division, the action shall be transferred from the small claims division to the justice court and the provisions relating to civil actions in justice court shall apply. B. The complaint form used in the small claims division of each justice court shall contain the following language printed in no smaller than ten point bold-faced type: "Warning - you do not have the right to appeal the decision of the hearing officer or the justice of the peace in a small claims court. If you wish to preserve your right to appeal, you may have your case transferred to the justice court pursuant to section 22-504, subsection A, Arizona Revised Statutes, if you request such transfer at least ten days prior to the day of the scheduled hearing." 22-505. Venue of small claims actions; permissible motions; satisfaction of judgment A. The rules governing venue of civil actions in the justice courts govern small claims actions. B. A motion for change of venue and a motion to vacate a judgment are the only motions allowed in a small claims action. These motions shall be heard only by a justice of the peace. C. A satisfaction of judgment may be filed in a small claims action. 22-506. Hearing officers A. The presiding judge of the superior court in the county may appoint hearing officers for small claims divisions upon recommendation of the justice of the peace. B. A hearing officer shall be of good moral character and shall be a qualified elector and resident of this state. C. A hearing officer may serve in any justice of the peace precinct within the county in which he is a resident. D. A hearing officer shall serve without pay. E. Special hearing officers may be appointed pursuant to subsection A to hear only mobile home park landlord-tenant controversies arising under title 33, chapter 11 or under the rental agreement between such parties. F. While acting as a hearing officer for small claims, a hearing officer has the same powers as a justice of the peace. G. If any party objects to the hearing officer prior to the hearing date, that party's case shall be referred to the justice of the peace of that precinct. 22-507. Clerk of the small claims division A. A designated clerk of each justice court shall provide such assistance as may be requested by any person regarding the jurisdiction, venue, pleadings or procedures of the small claims division. However, these clerks shall not engage in the practice of law. B. A designated clerk of each justice court shall inform the parties to a small claims proceeding of their rights, including that the parties do not have the right to appeal a decision rendered by a judge or hearing officer of the small claims division. C. The clerk shall, upon request, provide all necessary forms to the parties. D. The justice of the peace may designate a clerk of the small claims division of the justice court to conduct debtor examinations pursuant to section 22-524. 22-511. Schedule of hearings The small claims division shall conduct hearings at such times as the justice of the peace may determine or as the supreme court may order including evening and Saturday hours. 22-512. Parties; representation A. Any natural person, corporation, partnership, association, marital community or other organization may commence or defend a small claims action, but an assignee or other person not a real party to the original transaction giving rise to the action may not commence an action except as a personal representative duly appointed pursuant to a proceeding as provided in title 14. B. In a small claims action: 1. An individual shall represent himself. 2. Either spouse or both may represent a marital community. 3. An active general partner or an authorized full-time employee shall represent a partnership. 4. A full-time officer or authorized employee shall represent a corporation. 5. An active member or an authorized full-time employee shall represent an association. 6. Any other organization or entity shall be represented by one of its active members or authorized full-time employees. 7. An attorney-at-law shall not appear or take any part in the filing or prosecution or defense of any matter designated as a small claim. C. For an association as defined in section 33-1202 or 33-1802 that has employees or that is contracted with a corporation, limited liability company, limited liability partnership, sole proprietor or other lawfully formed and operating entity that provides management services to the association, the employees of the association and the management company and its officers and employees may lawfully act on behalf of the association and its board of directors by: 1. Recording a notice of lien or notice of claim of lien of the association against an owner's property in a condominium or planned community if all of the following apply: (a) The association employee or the management company is specifically authorized in writing by the association to record notices of lien or notices of claim of lien on behalf of the association and the officer or employee is a certified legal document preparer as prescribed in the Arizona code of judicial administration. (b) The association is the original party to the lien and the lien right is not the result of an assignment of rights. (c) The lien right exists by operation of law pursuant to section 33-1256 or 33-1807 and is not the result of obtaining a final judgment in an action to which the association is a party. 2. Appearing on behalf of the association in a small claims action if all of the following apply: (a) The employee of the association or the management company is specifically authorized in writing by the association to appear on behalf of the association. (b) The association is an original party to the small claims action. D. Notwithstanding subsection B of this section, at any time before the hearing, the parties may stipulate by written agreement to the participation of attorneys in actions designated as small claims. E. This section is not intended to limit or otherwise interfere with a party's right to assign or to employ counsel to pursue the party's rights and remedies subsequent to the entry of judgment in a small claims action. F. Attorneys-at-law may represent themselves in propria persona. G. The prevailing party in a small claims action may assign a monetary judgment to another person that is licensed in this state to collect debts and that may appear in the small claims court as the prevailing party only for the purpose of enforcing the judgment. A person that is assigned a judgment for collection does not represent the prevailing party but shall be treated by the small claims court as the prevailing party for all actions that relate to enforcing the judgment. 22-513. Method of service A. In addition to any other available methods of service, the plaintiff may serve the summons and complaint by registered or certified mail. Service is deemed complete on the date of delivery of the registered or certified mail to the defendant as indicated on the return receipt that is received and filed with the court either in person or by first class mail. If the date of delivery was not entered by the postal carrier or is illegible, service is deemed complete on the date the return receipt is received and filed with the court, either in person or by first class mail. The clerk of the small claims division of the justice court may make service by certified restricted mail, return receipt requested. B. If the defendant cannot be served by registered or certified mail, personal service by a process server or an authorized officer or by any other means pursuant to court rule may be used. If personal service is used, an affidavit of service shall be filed with the court. C. If personal service is used, service is deemed complete on the date of delivery that is indicated on the certificate of service. D. At the time a complaint is filed, the clerk shall notify the plaintiff that if the plaintiff serves the summons and complaint by registered or certified mail under subsection A of this section the plaintiff may file the registered or certified mail return receipt with the court either in person or by first class mail. 22-514. Time for answer The time in which the summons shall require defendant to answer is in all cases twenty days, commencing from the date of service. 22-515. Setting of trials; failure to appear; continuances A. On the filing of an answer by the defendant, the clerk shall set the action for hearing. The hearing shall be set for a date within sixty days of the filing of the defendant's answer. The clerk shall notify the parties of the time and place of the hearing. B. Any party failing to appear at the time set for hearing risks having an appropriate judgment entered against that party. C. Continuances of hearings shall be granted only for good cause. 22-516. Trial procedure A. The justice of the peace or hearing officer shall conduct the trial in such a manner to do justice between the parties and shall not be bound by formal rules of procedure, pleading or evidence except for statutory provisions relating to privileged communications. Any evidence deemed material, relevant and competent may be admitted. B. Discovery proceedings shall not be used in the small claims procedure. 22-517. Counterclaims exceeding jurisdiction; procedures; sanctions for improper assertion A. In any action where a counterclaim is asserted and the amount involved in the counterclaim exceeds the jurisdictional amount of the small claims division, the court shall at once terminate the designation as a small claim action, and the action shall proceed in accordance with the rules relating to all other civil actions. B. If, at any stage during the proceedings subsequent to the termination of the small claims designation as provided in subsection A, the justice of the peace or superior court judge determines that the amount actually involved in the counterclaim is not in excess of the exclusive civil jurisdictional amount of the small claims division, the action shall be reinstated in either the small claims division as a designated small claim action or in the justice court as a regular civil action. C. If the court makes a determination as provided in subsection B of this section that results in a reinstatement of the small claims designation and further determines that the amount requested in the counterclaim was asserted for the sole purpose of avoiding small claims proceedings, the court so finding shall award the plaintiff costs plus actual reasonable attorney fees incurred in defending the counterclaim. 22-518. Jury trials prohibited There is no right to a jury in the small claims division. 22-519. Appeals There shall be no appeal in a small claims procedure and the decision of the hearing officer or justice of the peace shall be final and binding on both parties. 22-520. Recording judgment A. The judgment by the justice of the peace or hearing officer in small claims issues shall be rendered no later than ten days from the close of the trial. B. All judgments shall be in writing and the court shall mail copies to all parties. C. The judgment shall clearly state the determination of the rights of the parties. D. The judgment is due and payable immediately after the judgment is rendered by the justice of the peace or a hearing officer in small claims court. Collection of the judgment by the prevailing party may follow the procedures as provided in sections 22-243 through 22-246. 22-521. Court records Notwithstanding section 22-212, each justice of the peace shall maintain a small claims court record in which the justice of the peace shall enter: 1. The title of all actions commenced before the justice of the peace, including names of all plaintiffs and defendants. 2. All judgments rendered by the justice of the peace or hearing officer. 22-522. Fees The following fees are established pursuant to section 22-281: 1. The fee for filing a small claims complaint. 2. The fee for serving the complaint upon the defendant by registered or certified mail. 3. The fee for answering a complaint. 22-523. Notice to public A. The presiding judge of the superior court or the presiding justice of the peace in each county shall publicize in an appropriate manner the existence of the small claims division, its procedures and its hours of operation. The publication shall be made so as to bring the division's existence to the attention of the entire community. B. The supreme court shall publish a small claims division brochure outlining the procedures of the division in lay terms. 22-524. Debtor's examination A. At the time of judgment and on request of the prevailing party or on the judge's own initiative, the judge shall order the judgment debtor to participate in a debtor's examination hearing. The court may hold the hearing immediately after judgment or may set a date for the hearing within ten days after judgment. B. The judge, a hearing officer, a court employee designated by the judge or a person authorized by law to administer oaths may conduct the debtor's examination. At the hearing, the judgment debtor shall provide the court with information on the debtor's assets and liabilities. This information shall include money, property, corporate shares and interest, loans and support payments. The court or judgment creditor may require additional information. 22-525. Satisfaction of judgment; filing procedures; transfer to justice court; hearing; bond A. The prevailing party shall file a satisfaction of judgment in the small claims division of the justice court within thirty days after a judgment has been paid in full. B. If the prevailing party fails to file a satisfaction of judgment or cannot be located after the opposing party has exercised due diligence in attempting to locate the prevailing party, the opposing party may file a motion to compel satisfaction of the judgment. If the motion is granted, the judgment is deemed satisfied. C. On the filing of a motion to compel satisfaction of the judgment, the case shall be transferred from the small claims division to the justice court. A justice of the peace may hold a hearing on the motion to compel satisfaction of the judgment. D. A justice of the peace may compel the moving party to post a bond with the justice court in the amount of the judgment.