Skaff v. Small Claims Court

TOBRINER, J. George Skaff filed an action in the small claims court, a division of the Municipal Court of the City of Los Angeles, against the Holiday Car Leasing Corporation, seeking recovery of $2501 which he allegedly extended to Holiday as a deposit for the delivery of a 1965 Chevrolet Impala Coupe automobile. Holiday counterclaimed against Skaff for $175, the amount allegedly due for rental and insurance coverage of a 1964 Chevrolet Impala Coupe automobile that Holiday had leased to Skaff. After a hearing on July 19, 1965, the judge of the small claims court denied plaintiff’s complaint but awarded Holiday a $175 judgment on its counterclaim.

Skaff in due time attempted to appeal from the judgment. After the clerk of the small claims court advised him that he had no right of appeal, Skaff, on September 16, 1965, filed a petition in the Superior Court of Los Angeles County for a writ of mandate to compel the respondent small claims court to permit the filing of the appeal. The superior court denied the writ on September 21, 1965, and the Court of Appeal affirmed.

Although Skaff sought no relief in this court, probably because of the small amount in controversy, we granted a hearing on our own motion (Cal. Rules of Court, rule 28(a)) [78]to decide a novel and important question in the day-to-day operations of small claims courts. Specifically, we must decide whether the party who initially brings an action in the small claims court may appeal from an adverse judgment on the opposing party's counterclaim or cross-complaint.

Section 117j of the Code of Civil Procedure, which provides for appeals from the judgment of small claims courts, reads as follows: “The judgment of said court shall be conclusive upon the plaintiff. If the defendant is dissatisfied, he may, within 30 days after the date of entry of the judgment, appeal to the superior court of the county in which said court is held.” Since a party possesses no right of appeal except as provided by statute (People v. Keener (1961) 55 Cal.2d 714, 720 [12 Cal.Rptr. 859, 361 P.2d 587] ; Trede v. Superior Court (1943) 21 Cal.2d 630, 634 [134 P.2d 745] ; In re Conley (1966) 244 Cal.App.2d 755, 759 [53 Cal.Rptr. 321]), the issue before us narrows to whether a party against whom a successful counterclaim has been filed should be regarded as a “plaintiff” or a “defendant” for purposes of section 117j.

As we shall explain in more detail infra, we believe Skaff should be regarded as a “defendant” and entitled to appeal from the judgment on the counterclaim for the following reasons: (1) Since decisions of this court characterize a counterclaim as a separate, simultaneous action, the plaintiff in the original action becomes a defendant in the cross-action and acquires the appellate remedies of a defendant; (2) The underlying reasons which support a denial of an appeal to the plaintiff in the prime action do not apply to the cross-action; (3) The denial of an appeal on the counterclaim would tend to discourage the use of the small claims court; (4) The denial of appeal on the counterclaim would pivot the right to appeal upon a fortuity.