Any board member or manager within a community association can tell you about their experience with an unhappy association member. But what happens when that member takes legal action against the association in Small Claims Court?

The first thing a community association needs to know is the differences between a Small Claims Court claim and a civil action in Superior Court. It is often said that the advantages of Small Claims Court are that it is cheaper and faster than a limited or unlimited action in Superior Court. Here are some ways in which Small Claims Court differs from Superior Court:

• • • Litigants must represent themselves, and they cannot be represented by an attorney (subject to specific exceptions);
    • As of January 1, 2024, the jurisdictional limit for cases brought by an individual is $12,500, while corporations can only seek up to $6,250;
    • The filing fee for a San Diego Small Claims complaint is generally $30-$100 as opposed to $435 in Superior Court;
    • If the plaintiff loses, they cannot appeal the case (unless the defendant counterclaims and wins), but a defendant who loses can appeal the case;
    • Generally, litigants may receive a Small Claims hearing date sooner than in Superior Court.

When a community association is served with a Small Claims complaint, the association may need to act quickly. Below is a helpful checklist of steps to consider taking when a community association is served with a Small Claims complaint:

• • • Contact the association’s legal counsel and provide them with a copy of the Small Claims complaint;
    • Submit a copy of the complaint to the community association’s insurance carrier(s);
    • Review the complaint and all attachments carefully;
    • Schedule and notice a special board meeting to discuss the complaint and the association’s response, or, depending on the Small Claims hearing date, add the complaint to the agenda for the next meeting. Depending on the timing and circumstances, holding an emergency board meeting may be necessary;
    • Calendar all applicable deadlines and due dates, including the date of the hearing, as failing to comply with applicable deadlines can result in an adverse judgment against the association;
    • Look at the date, time, and location of the hearing. If no association representatives are available to attend the hearing, the association may need to request to postpone the hearing;
    • Review what the aggrieved member, referred to as the “plaintiff,” is asking the Court for and consider whether to offer a settlement to the member in exchange for a dismissal of the complaint;
    • Prepare the community association’s response, including substantive arguments to respond to the Small Claims complaint. Be sure to submit all exhibits that support the association’s defense in advance of any applicable deadlines. While the Association’s legal counsel cannot appear at the hearing, counsel can help review and prepare the Association representatives to defend the Association in Small Claims Court.

Additionally, because the community association is not a person, it is important for the community association to complete and file an “Authorization to Appear on Behalf of Party” form, commonly known as an SC-109 form, with the Small Claims Court. This form must be completed by the board member or manager who intends to represent the association at the hearing.

Finally, it is important to remember that although a community association may have a good defense strategy, Small Claims Court sometimes favors member plaintiffs (the underdogs). Therefore, it is important to ensure that the community association is prepared and has a well-crafted response to a member’s Small Claims complaint. Helpful resources and more information can be found on the Judicial Branch of California’s website or by contacting a Small Claims advisor at (858) 634-1777 for San Diego County, (951) 274-4499 for Riverside County, or (213) 974-9759 for Los Angeles County. And remember that your friendly community association counsel is only a call away.