Legal Question in Civil Litigation in California

I can't tell you from the facts you have given what jurisdiction you should be in, because you do not specify what the amount of the promissory note. Small Claims courts only have jurisdiction for disputes up to $7500. Small Claims is civil court, but has jurisdiction limited to what I set forth in the preceding sentence. You would need to consult with an attorney to determine what remedies are appropriate, who will want to review the promissory note. (Is the promissory note secured? When was the last payment?)

I revised my previous answer, after being contacted by the poster. The judge ruled based on Code of Civil Procedure section 116.420. That section states that no claim shall be filed or maintained in small claims court by the assignee of the claim. There are exceptions, but it appears that you do not meet the exceptions.

Actually you are not entitled to anything now. If you filed in small claims court, and had a hearing, you've had your day in court. You gave up your right to appeal his decision by filing in small claims court. (Code of Civ. Proc., section 116.710 subd. (a).) The claim preclusion aspect of res judicata clearly applies to small claims judgments, neither plaintiff nor any assignee may sue again on the same claim or cause of action tried in the small claims court. (Pitzen v. Superior Court (2004) 120 Cal.App.4th 1374, 1381.)

Roach is wrong again. Dismissal for lack of jurisdiction is not an adjudication on the merits. The claim was never tried in the small claims court, specifically because the court lacked jurisdiction to try the matter. A defendant cannot receive the benefit of a dismissal for lack of jurisdiction and then claim that the court that had no jurisdiction heard the case and therefore the case cannot be heard in the court that does have jurisdiction. Therefore res judicata does not apply. You need to refile in Superior Court, Limited Jurisdiction. You need to move fast too, since the note was given in 7/2006 and we are already in 6/2010, since there is a four-year statute of limitations on a written agreement, including a note. You are probably entitled to interest, unless the note was interest free. You have not described any cause of action for fraud.

I agree with Mr. McCormick on the issue of jurisdiction, and I disagree with Mr. Roach. Res judicata does not apply when the court dismissed a case for lack of jurisdiction. The dismissal of your small claims case should not prevent you from suing over the same issues in the superior court.

I also agree that the statute of limitations on a written agreement is four years. Note, though, that the clock starts ticking at the time of the breach, not the time of the agreement. It isn't clear from your response when the defendant breached your agreement, but it probably was not the same day he signed it.