Below is a proposed article that Bruce Ward wrote in 1995 for submission to the Kansas Bar Association Journal. The article was not accepted for publication. All formatting, including footnotes, has been stripped from the version set forth below.
Obviously, some things have changed under Chapter 61 since the article
was written. All of the conclusions are, of course, those of the
author. If you have any questions, please contact the author (Bruce
Ward).
THINGS YOUR MOTHER NEVER TOLD YOU ABOUT CHAPTER 61
Or perhaps better put, things your civil procedure teacher never told you. I refer to Chapter 61 of the Kansas Statutes Annotated, now known as the Code of Civil Procedure for Limited Actions. In this article I would like to talk about some of the peculiarities found therein and to give you an overall sense of what I think Chapter 61 stands for.
Legislative Council & the Justice Code
Chapter 61 as we generally know it
today was enacted by the 1969 Legislature as the Code of Civil Procedure
Before Courts of Limited Jurisdiction following a study done by the Legislative
Council. The results of the Council's study were published in a pamphlet
and submitted to the Legislature in late 1968. The report contained
a proposed bill which essentially was enacted in full by the 1969 Legislature
. The bill was based in large part on the law which formerly occupied
Chapter 61 entitled the Code of Civil Procedure Before Justices of the
Peace or more commonly called the Justice Code.
The objectives of the Legislative
Council were (1) to standardize the jurisdiction, venue and remedies available
in the various courts of limited jurisdiction, and (2) to make the procedure
more compatible with the code of civil procedure. In meeting the
second objective, the Council sought to retain the informality of pleading
and shorter time frames found in the Justice Code. Certain discovery
tools available under the Code of Civil Procedure (K.S.A., Chapter 60)
were curtailed due to the limited amount in controversy and the volume
of cases.
When the new Chapter 61 went into
effect on January 1, 1970, we still had those lower courts in Kansas with
names that sound odd today, like County Court, City Court, Magistrate Court
and Court of Common Pleas. These were the courts of limited jurisdiction
in the days before unification of our court system. When unification
came in 1977, Chapter 61 was re-titled to what it is today.
1990 Revisions
A few significant revisions were
made by the 1990 Legislature following a second study done in 1988 by the
Judicial Council. Their report was also published. This study
was done in light of court unification which took effect earlier in 1977.
Coming some eleven years after unification, it must have been a well thought
out study. Most, if not all, of the changes suggested by this study
were adopted by the Legislature in 1990.
To fully appreciate Chapter 61 as
it exists today, you should read the two studies noted above. You
should also read in its entirety the old Justice Code. The provisions
of the Justice Code are not found now in the new statute books. This
means digging into one of the older books such as the 1949 General Statutes
of Kansas and risking some chance of injury from lifting a heavy book and
certainly some dirty clothes as the old book disintegrates in your lap
as you flip through the pages.
Chapter 61 is similar in many respects
to Chapter 60. After all, we are talking about a code of civil procedure
in each case. I won't mention those many areas that are similar.
But there are key differences which many practitioners have difficulty
with when first venturing into the waters of Chapter 61. Even seasoned
veterans think that Chapter 61 is simply a junior version of Chapter 60
and that whatever is not covered under Chapter 61 is by default covered
under Chapter 60. There was such a catchall provision in the Justice
Code. However, I've looked long and hard for something similar in
the new code and it is not there.
The Two Things
The review I suggest above makes
two things clear:
(1) Chapter 61 is complete unto
itself in most respects and is intended to stand on its own without dependence
upon Chapter 60. When the Legislature wanted to make a part of Chapter
60 applicable to Chapter 61, it simply adopted that procedure in Chapter
61 by reference to the Chapter 60 provision.
(2) Chapter 61 is designed basically
as a fast, simple and easy system to use in debt collection and other relatively
small dollar cases.
It is difficult to separate a discussion
of Chapter 61 from debt collection cases. The streamlined procedures
of Chapter 61 are well suited for these type of cases. Both parties
(creditor and debtor) are well served by the low cost, speed and simplicity
of the procedures. The creditor benefits from a system that allows
a claim to be quickly put in judgment and without the need for high cost
proceedures. The debtor benefits from a system that is simple and
one that can often be navigated without the formality of paperwork or the
assistance of an attorney.
Additionally, most cases filed under
Chapter 61 are suits to collect debt. The statistics statewide reflect
an explosion in Chapter 61 filings in the last five years. This is
partly the result of the bad check law and a liberalization of the garnishment
law in 1989.
You can, of course, collect debts
under Chapter 60. You can do lots of things under Chapter 60.
There are many things you cannot do under Chapter 61. Some of these
things I'm not sure why you would want to do anywhere. I mean, really,
habeas corpus? Quo warranto?
The Four Things
When it comes right down to it, you
can do four things under Chapter 61:
(1) sue for recovery of money on
a contract for the provision of goods, services or money;
(2) sue for tort damages which do
not exceed $10,000;
(3) sue to recover personal property
which has a value of not more than $10,000; and
(4) sue for recovery of possession
of real property under the forcible detainer procedure.
No Dollar Limits
Here are a couple of points to remember.
Under K.S.A. 61-1603 a suit for recovery of money on a contract for the
provision of goods, services or money has no limitation on the dollar amount
as long as the debt is unsecured. This is a result of the 1990 revisions
noted above. Suits in tort and on secured debt are limited to $10,000
(exclusive of costs and interest). These dollar limitations are jurisdictional.
In other words, if you exceed the limits, there is no jurisdiction for
the court to hear the case. If there is no jurisdiction, guess what
kind of judgment you will end up with? (Hint, it has a funny smell.)
This was a more serious problem
prior to the 1990 changes. Prior to then, the limit on all suits under
Chapter 61 was $5,000. Many lawyers erroneously think that the 1990
change just upped the limit from $5,000 to $10,000 on all suits.
Well now you know the truth and may it empower you to do great things under
Chapter 61.
The second point to remember is
that a forcible detainer can be brought under Chapter 61 regardless of
the amount of rent owed. This was true even before the 1990 changes.
This was probably so because there is no comparable procedure under Chapter
60 (unless you wish to try using ejectment under K.S.A. 60-1001).
This second point may be less remarkable today since there is now no dollar
limit on any type of suit based on unsecured debt.
Pleadings
The first thing a lawyer representing
a defendant in a Chapter 61 suit wants to know is: when do I file
my Answer, and what does it say. Thankfully, most pro se defendants
are not dying to know the answers to these questions. Well, you don't
have to file an Answer under Chapter 61. All the defendant or counsel
needs to do is get to the courthouse on the date and time specified in
the Summons and enter a plea to the allegations of the Petition.
Basically, the question to the defendant is, "Do you owe the money or not,
yes or no?" Some courts (shame on them) even allow a defendant to
enter their plea by telephone.
The time for appearance is determined
by the court and shall be not less than 11 nor more than 35 days after
the date the summons is issued. The summons must be served on the
defendant in time to file a return of service as required by law.
The return must be filed no later than 3 days before the appearance date
for forcible detainer cases and no later than 5 days before the appearance
date for all other cases.
Okay, now to let a couple of cats
out of the bag. If the defendant wishes to rely on an affirmative
defense, the defendant must file an appropriate written pleading, either
on or before the appearance date if no appearance is made, or within 10
days thereafter if an appearance is made. This is good to know at
trial when the defendant for the first time trots out affirmative defenses
such as payment or statute of limitations.
Secondly, the defendant may, but
need not, file a counterclaim, as this is not mandatory under Chapter 61.
If you are brave, you can compel by motion the filing of a counterclaim.
But this can backfire and the defendant might actually file one, and then
what do you do? I say it is better not to encourage such behavior.
If you are seeking punitive damages,
your pleading should state the amount of punitive damages sought.
Of course your damages cannot exceed $10,000 since most likely your claim
will be based in tort and not in contract.
Discovery
What about discovery? Discovery
is severely limited under Chapter 61 because of the relatively low dollars
in controversy and the high volume of cases filed. Besides, what
is it you really need to know about the other side's case? That they
can't pay the bill?
If you wish to do discovery under
Chapter 61 there are three main rules to remember:
(1) Only the plaintiff can use Request
for Admissions. The time for the defendant to respond is 10 days.
(2) Interrogatories may be used
only after the court has entered an order allowing their use. The
response time is 15 days.
(3) Depositions may not be used
for discovery but only as evidence at trial and only after the court has
entered an order allowing the taking of the deposition.
If you find yourself in a suit under
Chapter 61 and the fit is just too tight, you can move to transfer the
case to Chapter 60. However, the right to do so is not automatic
and good cause must be shown.
Default Judgments
If the defendant fails to answer
or appear at the time specified in the summons, or at the time the matter
has been set for trial, the plaintiff can request the court to enter default
judgment without further notice. This is true even if the defendant
has made a prior appearance in the case. Contrast this with the provision
under Chapter 60.
The set aside of default judgments
under Chapter 61 is noteworthy. The procedure under K.S.A. 60-260
(b) is to be followed except the motion shall be filed within 10 days from
date of judgment when the defendant was personally served and within 45
days otherwise.
If you should have the misfortune
of having one of your judgments set aside, particularly after attempting
to enforce it, you can take comfort in the provisions of K.S.A. 61-1722
(e) which read as follows:
"(e) Whenever a party has commenced
post-judgment proceedings for the enforcement of a judgment, and such judgment
is subsequently set aside, reversed on appeal or otherwise nullified, such
party shall not be liable for damages as a result of such postjudgment
proceedings, unless it can be proven that the judgment upon which said
proceedings were based was fraudulently obtained."
There is no comparable section under Chapter
60.
10 Day Rule
Special mention should be made of
the 10 day rule imposed by K.S.A. 60-206, which says that the 10 days within
which to act means 10 business days and not 10 calendar days. This
rule applies to Chapter 61 and is significant because so many deadlines
under Chapter 61 are 10 day deadlines (responsive pleadings, answers to
request for admission, set aside of default judgments, etc.).
And speaking of 10 days, does the
10 day stay under K.S.A. 60-262 apply to judgments under Chapter 61?
Probably not. K.S.A. 60-262 has not been incorporated under Chapter
61 by K.S.A. 61-1725. There are two provisions under Chapter 61 relating
to a stay upon appeal. A forcible detainer is stayed if an appeal
is taken. An order of garnishment may not be issued under Chapter
61 until 10 days after judgment. Finally, the Justice Code had provisions
for a stay of a judgment. None of these provisions were carried over
to the new Chapter 61.
All of the above support the argument
that if the Legislature had intended for there to be a general stay of
execution under Chapter 61, it would have specifically enacted such a provision.
Absent that, you are probably free to begin enforcing your Chapter 61 judgment
immediately after entry of judgment except by garnishment.
It is clear that after entry of
judgment in a forcible detainer action, a writ of restitution can be issued
and served immediately.
A Trio of Puzzlers
Next, here's a trio of puzzlers about
judgments:
1. There is no provision in
Chapter 61 for the renewal or extension of judgments. I have heard
it argued that the appropriate provisions of Chapter 60 to renew or extend
a judgment do not apply to Chapter 61 judgments. There is a certain
seductive ring to this argument, but not for the obvious reasons.
The procedure to renew or extend judgments in Chapter 60 is in Article
24. K.S.A. 60-2403 (a) seems to apply to "... the entry of any judgment
in any court of record in this state..." (emphasis provided by me).
After unification we have only one district court and it is a court of
record.
But if the provisions of K.S.A.
60-2403 (a) are meant to apply to Chapter 61 judgments, why did the Legislature
add at the end of that section the provision that when a judgment goes
dormant it ceases to be a lien on the real estate of the debtor?
Chapter 61 judgments do not operate as liens on real estate.
And again, this is reinforced in
the provisions of K.S.A. 60-2418 which allows a Chapter 61 judgment to
be transcribed and become a Chapter 60 judgment. Why did the Legislature
see fit to provide in subsection (b) that judgments so transcribed which
become dormant can be revived in the same manner as other judgments in
the district court? Does this mean that before a Chapter 61 judgment
is transcribed it cannot be revived?
The Legislature may have intended
that only judgments which are liens on real estate should have a terminable
existence, and that judgments which are merely personal in nature (no lien
on real estate) could live forever, subject only to the life of the judgment
debtor. Perhaps the idea was to avoid a perpetual clouding of title
to real estate.
I would love to leave you hanging
on this one. But let me bring you back to some level of comfort.
K.S.A. 61-2201 provides that all executions under Chapter 61 shall be taken
in the manner provided in Article 24 of Chapter 60. As noted above,
the procedure for renewal and extension of judgments is covered under K.S.A.
60-2403 and K.S.A. 60-2404 which is a part of Article 24.
Under the Justice Code, K.S.A. 61-1201
specifically provided that Chapter 61 judgments had a life of five years
and that this life could be extended by issuance of an execution.
The table of comparative sections at the beginning of the new Chapter 61
indicates that K.S.A. 61-1201 is now covered by K.S.A. 61-2201. As
noted above, K.S.A. 61-2201 directs you to Article 24 of Chapter 60.
It may well be that the Legislature
intended for Chapter 61 judgments to be renewable but forgot to clean up
the procedures of Chapter 60 after the Justice Code was repealed.
Perhaps in time, we will have a case go up on appeal to clarify the issue.
Or perhaps the Legislature will act first. In the meantime, the safer
course is to assume that Chapter 61 judgments go dormant unless the activity
outlined in K.S.A. 60-2403 is pursued.
2. There are two ways you
can make a Chapter 61 judgment operate as a lien on real estate.
a. One way is under K.S.A.
60-2202 (b) where you can file your Chapter 61 journal entry of judgment
in any county (including the county where the judgment was originally obtained)
and pay a $5.00 fee under K.S.A. 28-170, and magically the judgment becomes
a lien against the non-exempt real estate of the debtor in whatever county
you file in.
It is unclear, however, what you
do next. K.S.A. 60-2202 (a) says that you can only issue executions
in the county where the judgment was originally issued. Subsection
(b) does not have this language. K.S.A. 28-170 says the $5.00 fee
only buys you the right to file a judgment "on which execution process
cannot be issued." K.S.A. 61-2201 says you cannot execute on real
estate under a Chapter 61 judgment except as provided in K.S.A. 60-2418.
Under K.S.A. 60-2202 (b) you may end up with a judgment lien that cannot
be enforced.
b. The other way is to transcribe
the Chapter 61 judgment under K.S.A. 60-2418 in the same county and pay
a $15.00 fee. Then the clerk renumbers the case (presumably giving it a
new Chapter 60 case number) and the judgment becomes a lien on the real
estate of the debtor in that county. Further execution to satisfy
the judgment is taken as for a judgment originally entered under Chapter
60.
Then if you wish to file in another
county, you follow the procedure under K.S.A. 60-2202 (a) and pay a $5.00
fee to the other county. That section is clear that all executions
are to be issued from the original county and of course, since you now
have a Chapter 60 judgment, there is no restriction upon execution against
real estate.
Many will wonder why this business
of liens against real estate has any significance under Chapter 61.
Most debtors who are sued under Chapter 61 either don't own any real estate
or what they own is their homestead and hence, exempt from judgment liens.
Good point.
3. Here's something to ask
about judgment interest. The interest rate on Chapter 61 judgments
is 12% and has been for a number of years. If you later transcribe
a Chapter 61 judgment to Chapter 60, does it continue to bear interest
at 12% or do you reduce the rate to that under Chapter 60 (currently, 7.5%)?
Good question. (Sorry, I don't have all of the answers here.)
A Splitting of Hair
Okay, are you ready for some real
hair-splitting? Under Chapter 60, you can eventually have a civil
bench warrant issued if the debtor declines your invitation to appear in
court. The statute says that a bench warrant may be issued, "...If
after proper service of the citation by any officer or other person ..."
The same results can be affected under Chapter 61. However, the statute
there says that the bench warrant may be issued, "...If after proper service
of the citation by the sheriff, ..."
This didn't used to be such a big
deal, as the sheriff served most, if not all, civil process. But
after the 1992 changes to K.S.A. 60-303 (c) (3) and K.S.A. 61-1803 (c)
(3), much process, and particularly contempt citations, is now served by
special process servers.
Conclusion
Chapter 61 is not a junior version
of Chapter 60 and proceedings are not the same under each Chapter.
Chapter 61 is designed as a fast, simple and easy system to use in debt
collection cases. Chapter 60 is better suited for more complicated
matters, what sometimes some lawyers refer to as "real lawsuits".
There is a perception among those
who practice in Chapter 61 that many of the bench and bar generally tend
to overlook Chapter 61 and the goings on there. Who really cares
about Chapter 61? Does it matter?
It matters because of the high volume
of cases filed under Chapter 61 and the tremendous revenue generated by
these cases.
Additionally, cases under Chapter
61 tend to produce a lot of papers filed with the clerks. The bench
and bar as well as the Legislature should constantly be looking at ways
to expedite Chapter 61 matters.