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COMMITTEE REPORT
May 24, 2006
H. 4471
Introduced by Reps. Clemmons, Barfield, Vick, Martin, Cotty, Witherspoon, Hardwick, Harrison, Altman, Bales, Edge, Hagood, Hayes, Jennings, Leach, Limehouse, Loftis, M.A. Pitts, Rice, Sinclair, J.E. Smith, Viers and White
S. Printed 5/24/06--S.
Read the first time March 16, 2006.
To whom was referred a Bill (H. 4471) to amend Sections 22-3-10 and 22-3-30, both as amended and both relating to jurisdiction of the magistrate's court, both so as to provide, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
LARRY A. MARTIN for Committee.
TO AMEND SECTIONS 22-3-10 AND 22-3-30, BOTH AS AMENDED AND BOTH RELATING TO JURISDICTION OF THE MAGISTRATE'S COURT, BOTH SO AS TO PROVIDE THAT IN A COMMERCIAL LEASE RELATIONSHIP THE MAGISTRATE SHALL RETAIN JURISDICTION OVER AN EJECTMENT ACTION AND CORRESPONDING COMPULSORY COUNTERCLAIMS, REGARDLESS OF THE AMOUNT OF THE COUNTERCLAIM; TO AMEND SECTION 27-33-40, RELATING TO CONCURRENT JURISDICTION OF CIRCUIT COURT JUDGES AND MAGISTRATES, SO AS TO PROVIDE THAT IN A COMMERCIAL LEASE RELATIONSHIP THE MAGISTRATE SHALL SEVER AND TRANSFER TO CIRCUIT COURT CLAIMS OR PERMISSIVE COUNTERCLAIMS FILED IN MAGISTRATE'S COURT IN CONNECTION WITH AN EJECTMENT ACTION IF THOSE CLAIMS EXCEED THE JURISDICTIONAL AMOUNT, WHILE RETAINING JURISDICTION OVER THE EJECTMENT ACTION AND COMPULSORY COUNTERCLAIMS; AND TO AMEND SECTION 27-37-60, RELATING TO THE TRIAL OF A CONTESTED EJECTMENT ACTION RESULTING FROM A COMMERCIAL LEASE ARRANGEMENT, SO AS TO REQUIRE THAT THE ACTION BE HEARD, WITH PRIORITY, AT THE NEXT TERM OF COURT AND THAT THE TENANT TENDER RENT DUE AND ACCRUING AS OF AND DURING THE PENDENCY OF THE ACTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 22-3-10(12) of the 1976 Code, as added by Act 48 of 1997, is amended to read:
"(12) in all actions provided for in this section when a filed counterclaim involves a sum not to exceed seven thousand five hundred dollars, except that this limitation does not apply to counterclaims filed in matters between landlord and tenant and the possession of land;. As to an ejectment action pursuant to Section 27-37-10 arising out of a commercial lease relationship:
(a) the magistrate has unlimited jurisdiction over a commercial ejectment action; and
(b) the magistrate shall sever and transfer all claims, compulsory counterclaims, or permissive counterclaims the commercial tenant files which exceed the jurisdictional limit as provided in Section 22-3-30; except that the magistrate shall retain jurisdiction of the commercial ejectment action;"
SECTION 2. Section 22-3-30 of the 1976 Code, as last amended by Act 48 of 1997, is further amended to read:
"Section 22-3-30. (A) When a counterclaim is filed which if successful would exceed the magistrates' civil jurisdictional amount as provided in Section 22-3-10, then the initial claim and counterclaim must be transferred to the docket of the common pleas court for that judicial circuit.
(B) Notwithstanding subsection (A), a counterclaim in an ejectment action filed pursuant to Section 27-37-10 and arising out of a commercial lease agreement must be treated as provided in Section 22-3-10(12)."
SECTION 3. Section 27-33-40 of the 1976 Code is amended to read:
"Section 27-33-40. (A) The judges of the circuit courts and county courts in this State shall have concurrent jurisdiction with and may exercise all of the duties and powers conferred upon magistrates by any the provisions of Chapters 33 through 41 of this Title 27.
(B) Notwithstanding subsection (A), an ejectment action arising out of a commercial lease agreement which is filed in magistrate's court must not be transferred to the circuit court, regardless of the amount of the claim. The magistrate shall sever other claims, compulsory counterclaims, or permissive counterclaims filed by the tenant in a commercial ejectment action and transfer them to the circuit court, while maintaining jurisdiction over the original commercial ejectment action as provided in Section 22-3-10(12)."
SECTION 4. Section 27-37-60 of the 1976 Code is amended to read:
"Section 27-37-60. (A) If the a residential tenant appear appears and contest contests ejectment, the magistrate shall forthwith hear and determine the case as any other civil case, allowing trial by jury if demanded by either party.
(B) If a commercial tenant appears and contests ejectment, the magistrate shall hear and determine the case as any other civil case. Upon motion of either party or upon his own motion, the magistrate may order that the case be heard at the next term of court following the tenant's appearance. The court may order the tenant to tender payment for all rent due and accruing as of and during the pendency of the action. The order may require the payments to be made either directly to the commercial landlord or to the clerk of court, to be held until final disposition of the case, or through the magistrate's office. If payments are to be made through the magistrate's office, a fee of three percent of the rental payment must be added to the amount paid through the office. Upon failure of the tenant to tender rent due within five days of the magistrate's order or as it accrues during pendency of the action, the tenant is considered to have waived his right to a jury trial and the action must be placed on the nonjury docket for consideration like any other civil case."
SECTION 5. This act takes effect upon approval by the Governor.
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