About Small Claims Lawsuits
Small claims court is an ideal venue for settling the disputes of individuals and small businesses when other attempts at amicable resolutions fail. The small claims process is designed to be fast and efficient with minimal financial impact on the parties. However, it also carries unique rules and restrictions that must be considered before bringing a claim.
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Function
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Each state regulates its own small claims system, but in all cases the sums that can be recovered are limited, often to between $5,000 and $7,000 depending on the state. This makes small claims court good for pursuing a judgment for unpaid rent or debts, damage to property, or reimbursement for faulty goods. Civil complaints such as libel or slander, or claims exceeding the judgment cap cannot be brought in small claims court.
Features
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The atmosphere of the small claims court is relatively informal, considering there are no juries present and usually no lawyers. Filing a claim usually involves filling out a claim form with the name of the defendant and the facts of the case. Documentation may be required or recommended to verify the facts, and may need to be copied for the court and the defendant. A filing fee is usually charged to start a small claims case, though this is sometimes waived if the claimant can demonstrate need. Filing costs and court fees go to defray the expense of paying a court clerk, a bailiff, a judge and maintaining a court room. Court fees also act as a minimal barrier preventing the system from being flooded by frivolous claims.
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Features
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Once a claim is filed, the court sets a hearing date, which is usually 2 or 3 months in the future. On the day of the hearing, both parties bring any witnesses or documents they want the judge to consider. Since lawyers are not allowed in small claims court, the parties should be prepared to represent themselves. Unlike larger courts, objections are not allowed in most small claims courts. Instead, parties should simply answer the judge's questions carefully with brief statements of fact, avoiding any argumentative language. The judge may reach a decision by the end of the hearing but might also take the case under submission, meaning the decision will be mailed in writing approximately 2 or 3 weeks later.
Costs
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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. The filing fee 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 almost all states, qualifying individuals can file for a waiver of court costs if they can demonstrate financial hardship.
Significance
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Because the awards in a small claims case are limited, the costs in time, effort and money 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 very tiny. Small claims court, however, does carry all the authority of larger courts and therefore appropriate behavior should be observed and respect for the process and officers of the court should follow accordingly.
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