WHAT ARE SMALL CLAIMS COURTS?
Small Claims Courts are especially designed to handle disputes between individuals, or an individual making a claim against a business, where the amount of money involved is relatively "small" – at least in terms of the cases courts usually decide.
Small Claims Courts typically can hear disputes that involve amounts that range from $1,000 to $5,000.
The precise limit depends on the local laws in each jurisdiction. In some states, Small Claims Courts can also handle minor disputes between individuals and a government agency.
IS IT COMPLICATED TO TAKE A CASE TO SMALL CLAIMS COURT?
Although Small Claims Courts use what they consider to be very simplified procedures, to someone unfamiliar with the process, it still can be quite complicated.
WHAT KIND OF DO SMALL CLAIMS COURTS TYPICALLY HEAR?
Small Claims Courts frequently hear disputes such as these:
- the laundry loses a customer's shirts but refuses to pay for them, or is willing to pay an amount that the customer thinks is inadequate;
- the landlord improperly refuses to return a tenant's security deposit;
- the driver who hit a parked car won't pay to repair the fender;
- the new luggage you bought breaks, and the store says "tough luck";
- the doctor charged $1,800, the health insurer says $650 is "reasonable and customary" and won't pay one cent more, and the doctor is "dunning" you;
- the kid next door hits a baseball through your window, her parents say its her responsibility, and at her $1.00 a week, it would take 10 years to collect.
DOES IT MAKE TO GO TO SMALL CLAIMS COURT?
Whether you should go to Small Claims Court will depend on the unique facts and circumstances of your situation.
- Have you tried to settle the matter on an informal basis?
- Have you made a formal written demand on the other side – such as one you wrote yourself?
- Are you and the other side far apart, or is the difference trivial?
- Is there a person you both can rely on to "mediate" and "arbitrate" the matter for you?
- Will the matter be worth your time and effort and the mental anguish involved?
- Have you consulted a lawyer? While no lawyer can afford to work for nothing, and many will not want to get involved in a "small case" some lawyers might, for very little money, be able to help you. For example, very often a discussion with the lawyer may help you really understand all of your rights. If you have a legitimate claim, then a letter to the other side from the lawyer -- known as a "lawyer's letter" -- may help show you are serious, and get the other side to act. Often it can produce results that you may never get in court, and save you a great deal of time and anguish.
- Even if you win, how likely is it you will be able to collect anything from the other side?
- What impact will going to Small Claims Court have on your future relationships with the other side, and others in the community?
HOW DO I START A SMALL CLAIMS ACTION?
Go to the appropriate Small Claims Court (some even have evening hours). You can't just go to any Small Claims Court, as state laws may require you to use only the one where you reside, or where the person you want to sue resides, or where the accident occurred, or where you bought the defective merchandise.
Many of the Court Clerks are very helpful, and will tell you if you are in the "right" Small Claims Court. Ask the Court Clerk for the appropriate form. You'll have to fill out the form which may be known as a "Claim Form" or "Complaint" or "Claim of Plaintiff". You may also have to pay the Court a filing fee to start the action. (If you win your case you MAY be able to recover the amount the Court finds you are owed PLUS the filing fee and certain other court costs.)
IS THERE A TRIAL?
Yes. It won't be like a trial you see on television, however. Most Small Claims Court have very simplified procedures for the trial. There will not be any jury. While you may sometimes have the right to have the matter heard by a judge, most Small Claims Courts have processes that at least "encourage" you have the trial held by a lawyer who serves as a volunteer arbitrator.
HOW LONG DOES IT TAKE TO LEARN IF I WON AFTER THE TRIAL?
In a few cases the judge or arbitrator will decide right there. Most do not. They don't want to get into an argument with the losing party -- or a winning party who feels she should have won more.
Generally the results are sent by mail to the parties, even if the decision is clear to the judge or arbitrator right away. This may take a few days or much longer.
IF I WIN, WHAT HAPPENS?
You have to collect your award. While a losing defendant may voluntarily pay it, there often are rather complicated processes that a winning party must go through to collect a judgment to get the court's award or "judgment" turned into cash in hand. If the loser does not have any property that is subject to collection, you may win a judgment but never collect anything! In fact many Small Claims Court judgments are never satisfied.
IF I LOSE, WHAT HAPPENS?
You may have to pay the other side's "chargeable" costs and expenses. This means certain money they may have had to pay, but not their lawyer's fees. In theory at least you sometimes may be then sued for "malicious prosecution" or "abuse of process"
