About Small Claims Courts Fees

When all attempts at an amicable settlement fail, small claims court can be an ideal venue for individuals or small businesses to settle their disputes. Carrying all the authority of the higher courts, small claims is tailored to be a fast and efficient process with minimal financial cost. Small claims, however, has unique rules and limitations that should be considered before bringing a claim.

Features

Small claims court is designed to be a simple way for individuals to obtain justice through the legal system without the complications of higher courts. In fact, lawyers are not even allowed in most small claims courtrooms. Though parties to a claim can obtain legal advice outside the courtroom prior to a hearing, legal fees, if there are any at all, are usually at a minimum. This means that the actual charges assessed by the court itself become the primary costs associated with bringing a small claims action.

Function

Though the court system is not a for-profit enterprise, it does involve costs to maintain and operate, costs usually borne by the taxpayers. Filing costs and court fees go to defray the expense of paying a court clerk, a bailiff, a judge and maintaining a court room. Additionally, court fees act as a minimal barrier preventing the system from being flooded by frivolous and petty claims.

Types

The costs associated with bringing a small claims suit vary by state, but usually break down into several distinct areas. A filing fee is due when the original claim is filed with the court and covers the initial processing that gets the claim on the docket and schedules a hearing. Whether or not assessed by the court, there will usually be fees associated with copying the court documents and serving the defendant with the required papers informing them of the claim and the hearing date. In many cases, an individual can hire a private process server or sheriff to perform this task. Depending on how the suit progresses, other court costs may become relevant, including, in the worst case, contempt of court or other disciplinary fees assessed as a result of poor behavior in the courtroom.

Significance

Small claims courts have a cap on the monetary value of damages that can be awarded, usually $5,000 to $7,000, depending on the state. The costs of bringing a small claims case should be weighed against the amount of relief being sought. Although some states award successful plaintiff fees and costs on top of a settlement, not all do. Therefore, small claims court costs can be prohibitive in cases where the claim is exceedingly small.

Size

The sum total of legal fees in a small claims suit is usually in the vicinity of $50 to $150; however, in some states it can be significantly less. New Jersey, for example, charges only $15 for claims against a single defendant, $2 for each additional defendant and $7 for service of process. In almost all states, qualifying individuals can file for a waiver of court costs if they can demonstrate financial hardship.

Resources

• What You Need to Know About Small Claims Court
• Small Claims FAQ