House Study Bill 63 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON BALTIMORE) A BILL FOR An Act relating to forcible entry and detainer actions, 1 including granting concurrent jurisdiction to small claims 2 courts over preliminary hearings for certain forcible entry 3 and detainer actions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1753YC (2) 87 md/sc/jh

H.F. _____ Section 1. Section 631.1, subsection 2, Code 2017, is 1 amended to read as follows: 2 2. The district court sitting in small claims shall have 3 concurrent jurisdiction of an action for forcible entry and 4 detainer which is based on those grounds set forth in section 5 648.1 , subsections 1, 2, 3 , and 5 , and 7 . When commenced 6 under this chapter , the action shall be a small claim for the 7 purposes of this chapter . 8 Sec. 2. Section 631.1, Code 2017, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 10. The district court sitting in small 11 claims has concurrent jurisdiction of preliminary hearings 12 under section 648.5, subsection 6, for claims brought in small 13 claims court under subsection 2 of this section and shall enter 14 a judgment of removal if the defendant fails to appear or fails 15 to raise facts constituting a meritorious defense as provided 16 in this subsection. At or prior to the preliminary hearing, a 17 defendant may file an affidavit raising facts that establish a 18 meritorious defense to eviction. At the preliminary hearing, 19 the district court sitting in small claims shall examine all 20 occupants of the property present at the hearing, except those 21 who have filed an affidavit establishing a meritorious defense, 22 to determine whether there are any genuine issues of material 23 fact which constitute a prima facie defense to eviction. The 24 court shall file a written record of the examination and the 25 court’s findings. The court’s failure to file a written record 26 of the examination and findings is an irregularity for purposes 27 of Iowa court rule 1.1004(1) or 1.1012(2). If the defendant 28 is not represented by counsel, a settlement agreement between 29 the defendant and the plaintiff entered into prior to the 30 preliminary hearing is not valid unless approved by the court 31 after the court has completed its examination. If a valid 32 settlement agreement does not exist and the defendant has 33 established a prima facie defense to eviction, the court shall 34 transfer the case from the small claims docket to be tried by 35 -1- LSB 1753YC (2) 87 md/sc/jh 1/ 4

H.F. _____ regular equitable proceedings. 1 Sec. 3. Section 648.1, Code 2017, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 7. Where the vendee or other persons in 4 possession of the property have failed to vacate after the 5 forfeiture of a real estate contract under chapter 656 and the 6 vendor has filed with the court an affidavit establishing the 7 facts of the plaintiff’s case, including a copy of the recorded 8 real estate contract and copies of all documents filed for 9 recording pursuant to section 656.5. 10 Sec. 4. Section 648.22, Code 2017, is amended to read as 11 follows: 12 648.22 Judgment —— execution —— costs. 13 If the defendant is found guilty plaintiff establishes 14 the plaintiff’s claim to possession by a preponderance of 15 the evidence , judgment shall be entered that the defendant 16 be removed from the premises, and that the plaintiff be put 17 in possession of the premises , and an . An execution for the 18 defendant’s removal within three days from the judgment shall 19 issue accordingly, to which shall be added a clause commanding 20 the officer to collect the costs as in ordinary cases. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill creates an action for forcible entry and detainer 25 following the forfeiture of a real estate contract and grants 26 concurrent jurisdiction to the district court sitting in small 27 claims over preliminary hearings for certain forcible entry and 28 detainer actions. 29 The bill provides that an action for forcible entry and 30 detainer is allowed where the vendee of a real estate contract 31 or other persons in possession of the property fail to vacate 32 after a valid forfeiture of the contract under Code chapter 33 656 and the vendor has filed with the court an affidavit 34 establishing the facts of the plaintiff’s case, including a 35 -2- LSB 1753YC (2) 87 md/sc/jh 2/ 4

H.F. _____ copy of the recorded real estate contract and copies of all 1 documents filed for recording pursuant to Code section 656.5. 2 The bill further provides that the district court sitting 3 in small claims has concurrent jurisdiction of an action for 4 forcible entry and detainer that is based on a vendee failing 5 to vacate after forfeiture of a real estate contract. 6 Under current law, a preliminary hearing is held by the 7 district court for forcible entry and detainer actions to 8 determine if a genuine issue of material fact exists. The 9 bill provides that for forcible entry and detainer actions 10 where the plaintiff alleges either that the defendant has by 11 force, intimidation, fraud, or stealth entered upon the prior 12 actual possession of another in real property and detained the 13 property, that a lessee has held over after the termination 14 of the lease, holds contrary to the terms of a lease, or has 15 not paid rent that is due, or that a vendee has failed to 16 vacate after a valid forfeiture of a real estate contract, 17 the district court sitting in small claims has concurrent 18 jurisdiction over such preliminary hearings. If the defendant 19 fails to appear or fails to raise facts constituting a 20 meritorious defense, the court is required to enter judgment 21 of removal. At or prior to the preliminary hearing, a 22 defendant may file an affidavit raising facts that establish a 23 meritorious defense to eviction. At the preliminary hearing, 24 the district court sitting in small claims is required to 25 examine all occupants of the property present at the hearing, 26 except those who have filed an affidavit establishing a 27 meritorious defense, to determine whether there are any genuine 28 issues of material fact which constitute a prima facie defense 29 to eviction. The court is required to file a written record 30 of the examination and the court’s findings. The court’s 31 failure to file such items is an irregularity for purposes of 32 Iowa court rules and may result in granting a new trial or 33 constitute grounds for vacating or modifying a judgment. 34 The bill also provides that if the defendant is not 35 -3- LSB 1753YC (2) 87 md/sc/jh 3/ 4

H.F. _____ represented by counsel, a settlement agreement between 1 the defendant and the plaintiff entered into prior to the 2 preliminary hearing is not valid unless approved by the court 3 after the court has completed its examination. If a valid 4 settlement agreement does not exist and the defendant has 5 established a prima facie defense to eviction, the court must 6 transfer the case from the small claims docket to be tried by 7 regular equitable proceedings. 8 The bill provides that if the plaintiff in an action for 9 forcible entry and detainer establishes the plaintiff’s claim 10 to possession by a preponderance of the evidence, the court 11 shall enter judgment for removal of the defendant from the 12 premises and put the plaintiff in possession of the premises. 13 -4- LSB 1753YC (2) 87 md/sc/jh 4/ 4