AB 703

This bill requires certain procedural safeguards before judgment is entered in

a small claims eviction action based on noncompliance with a stipulated dismissal.

Current law establishes certain procedures to be followed in small claims

actions brought in circuit court. Small claims actions include eviction actions,

actions to recover earnest money given towards the purchase of real property, and

certain other civil actions in which the amount claimed is $10,000 or less. Under

current law, the parties to a small claims action may settle the action and stipulate

to a judgment of dismissal, and, if a party does not comply with the stipulation, the

other party may file an affidavit of noncompliance, and the court may vacate the

stipulated judgment and enter judgment against the noncomplying party without

notifying the noncomplying party.

The bill provides that, if such a stipulation is entered in a small claims eviction

action, the court may vacate the stipulated judgment only if prior written notice is

provided to the noncomplying party. The bill also provides that the court may not

enter judgment against the noncomplying party unless 1) the complying party

applies for such entry, files proof by affidavit of noncompliance with the terms of the

stipulation, and files proof that proper notice has been provided to the noncomplying

party, and 2) the court holds an evidentiary hearing.