Overview
A proposal to amend A.R.S. § 22-503 to increase the dollar amount of a claim/lawsuit eligible to be handled by small claims court from $3,500 to $7,500.
Key Changes
Current Law
Small claims court has jurisdiction over claims up to $3,500.
Proposed Amendment (Passed Into Law)
- Increased Jurisdictional Limit: The jurisdictional limit for the small claims division of justice court is increased from $3,500 to $5,000.
- HOA Exclusion: Actions brought by homeowners’ associations for planned communities or condominiums are excluded from small claims court jurisdiction.
Legislative Timeline
- May 2, 2025 – Signed by Governor
- April 29, 2025 – Senate Concur Motion for Amendment passed; Approved by Senate as Amended 27-0-3; Transmitted to Governor
- April 17, 2025 – House Third Read, Approved by House 32-23-5; Transmit to Senate
- April 15, 2025 – Floor amendment proposed by Rep. Carter N. and Motion by Rep. Carbone for an Additional Committee of the Whole for purposes of further amending.
- The amendment proposed excludes, from the small claims court’s jurisdiction, any actions brought by a homeowners’ association for a planned community or condominium.
- Passed out of the Committee of the Whole with Rep. Travers amendment and with a “Do Pass” recommendation.
- April 14, 2025 – Floor amendment proposed by Rep. Travers and Motion for an Additional Committee of the Whole for purposes of further amending.
- The amendment proposed decreases, from $7,500 to $5,000, the jurisdictional limit for the small claims division of the justice court.
- April 7, 2025 – Passed out of the Committee of the Whole with a “Do Pass” recommendation
- April 1, 2025 – Deemed constitutional and in proper form by House Committee on Rules; On consent calendar for Committee of the Whole
- March 26, 2025 – Passed out of House Committee on Judiciary with “Do Pass” recommendation
- March 21, 2025 – On the March 26, 2025 agenda for the House Committee on Judiciary
- March 17, 2025 – House Second Read
- March 13, 2025 – House First Read; Assigned to House Committee on Judiciary and House Committee on Rules
- February 12, 2025 – Senate Third Read; Approved by Senate 28-0-2 and transmitted to the House
- February 3, 2025 – Deemed Proper for Consideration by Senate Committee on Rules; Recommended for Consent Calendar
- January 29, 2025 – Passed out of Senate Committee on Judiciary with a “Do Pass” recommendation
- January 15, 2025 – Senate Second Read
- January 14, 2025 – Senate First Read; Assigned to Senate Committee on Judiciary and Senate Committee on Rules
Impact
The law increases access to small claims court for individual litigants by raising the jurisdictional limit to $5,000, reflecting inflation and allowing more disputes to be resolved through the simpler, less formal small claims process. However, the exclusion of actions brought by HOAs and condominiums means associations cannot use small claims court for collections actions, assessment disputes, or other claims against owners regardless of the amount. This exclusion requires associations to file all claims in superior court or regular justice court, increasing litigation costs and procedural complexity even for small disputes.