Raising small‑claims cap to $50,000 draws sharp questions on discovery and judicial authority

Lawmakers debated SB 405 at length in the Rules Committee after its sponsor described the bill as a measure to expand access to justice by raising the magistrate (small‑claims) cap from $15,000 to $50,000. The sponsor argued the change would allow citizens to resolve consumer and contractor disputes without the cost of attorneys.

Opponents and some committee members raised procedural and fairness concerns. One senator noted a letter from state court judges opposing raising the threshold and warned that many magistrate judges are not attorneys; another committee member cautioned that magistrate courts do not permit discovery — interrogatories, document requests or depositions — which could leave litigants “going in there blind.” The sponsor responded that magistrate rulings are appealable to state or superior courts and defended magistrates’ capacity to handle fact‑specific cases, emphasizing access and streamlined resolution.

The committee heard repeated questions about insurance coverage limits for magistrates and whether raising the cap would shift cost burdens or complicate adjudication for more complex matters. Sponsors cited examples — contractor no‑shows and renovation disputes — as typical cases the bill aims to streamline. No formal committee vote on SB 405 was recorded in the Rules calendar minutes excerpt.

The measure remains under consideration and drew clear caution from members who said the bill needs to address discovery and oversight issues before they could endorse expanding magistrate jurisdiction.