Small-claims court is an informal and relatively inexpensive forum for resolving certain types of small disputes, but it certainly isn't right for every small dispute. So how do you decide when it is right for you? And even before that, what exactly is it?
What Are Small-Claims Courts? Small-claims courts are usually part of the state court system; since state court systems set their own rules, the exact procedures and policies differ from state to state. In most, individuals can sue only to collect money - you can't ask a small-claims court to force your opponent to take any other action, such as perform a certain act like taking down a fence that crosses a property line. And as the term "small claims" implies, people can only bring cases worth a limited amount of money to small-claims court.
You do not necessarily need to hire a lawyer to bring a case in small-claims court. In fact, some states do not allow a lawyer to accompany you. But that does not mean your trip to small-claims court will be a breeze or that you should not consult an attorney first. By acting as your own advocate in small-claims court, you may need to research, gather documents, and investigate factual matters to prepare and present your case clearly and concisely. Your attorney can help you determine which documents and forms you will need.
Small-claims court procedures are similar to those of regular courts, only less formal. The person initiating the lawsuit (the plaintiff) is generally required to file a complaint against the party from whom he or she seeks money. A judge or clerk will then set
a date for a hearing, and the person being sued (the defendant) must be notified. At the hearing, both sides have a chance to present their version of the story and produce evidence to help support their arguments. After both sides have presented evidence, the judge will make a decision and either deliver it to the parties on the spot or mail it to them soon afterward.
Is Small Claims Right for You? Every state has an upper limit on the amount of money that can be sought in small-claims courts. Typically the limit is between $2,000 and $7,000, but in some states it is as high as $15,000. In order to find out the applicable limits in your state, contact the small-claims clerk of your local court. Most states also provide this information online. Common matters handled in small-claims court include disputes involving debt and repayments of loans, breach or cancellation of contracts, minor personal injuries, breach of warranty (for example, when a purchased product is defective or not as advertised), property damage, evictions, and failure to return borrowed property.
On the other hand, there are some types of cases that can never be brought in small-claims court. These include: criminal matters; divorce proceedings; bankruptcy filings; name change requests; and any kind of lawsuit against a state, the federal government, or a federal agency.
Explore Your Other Options . You have other options for resolving your disputes besides small-claims court. It is important to understand that it might not always be in your best interest to resolve a matter in small-claims court. In particular, you may want to consider whether you want your financial dispute discussed in public, how the case might affect your reputation, and how the small-claims process may affect future opportunities for you and the other side to work together. Other options for dealing with smaller disputes include simply calling, writing, and meeting with the other side to work out a solution, mediation, arbitration, and traditional lawsuits.
You may want to specifically ask your local small-claims court clerk to help with mediation. Mediation of a small-claims case is mandatory in some areas of the country. In others, it is easily accessible on a voluntary basis, either right in the courthouse or at a nearby community center. You can contact a mediation center to enlist its help in bringing the other party to the table.
Of course, if you have any questions about how things will play out in small-claims court or about whether small-claims court is even the right option for you, you shouldn't hesitate to talk to your attorney to assess your possible paths.