Prior to the enactment of Assembly Bill 712, California Smalls Claims Courts had jurisdiction over actions seeking certain forms of relief, including money damages up to $7,500 and in such actions the Smalls Claims Court was also permitted to grant equitable relief in the form of rescission, restitution, reformation, and specific performance in lieu of, or in addition to, money damages. Under the new law, the Small Claims Court will be prohibited from issuing injunctive relief (e.g. specific performance) unless a California statute specifically authorizes the Small Claims Court to award injunctive relief. Fortunately, California Code of Civil Procedure §§ 116.210-116.221 provide that in any small claims action seeking money damages, the Small Claims Court may grant equitable relief in the form of recision, restitution, reformation and specific performance, in lieu of, or in addition to, money damages. In effect, this bill does not change existing law but seeks to clarify it.

Several statutes affecting homeowner associations (HOAs) also explicitly provide the Small Claims Court with jurisdiction to grant equitable relief. For example, California Civil Code § 1365.2 authorizes a person to bring an action in Small Claims Court to inspect and copy HOA records, and to ask for a civil penalty of up to $500 for each violation. The action to enforce the right to inspect and copy HOA documents would be an action for injunctive or declaratory relief. Similarly, Civil Code § 1363.09(c) allows a member of a common interest development to seek injunctive relief in any case involving association-related elections to be brought in Small Claims Court if the amount of the demand does not exceed the jurisdiction of the Small Claims Court ($7,500).