Small Claims Court Claim Limits

Small claims do not always require a judge and a court, but often they are necessary.

A small claims court serves the purpose of settling disputes that fall within the maximum price range as determined by the state. The limit of the claim that can be brought to a small claims court is decided solely based on state law. There are no attorneys, juries or specific courtroom procedures and most often the only people involved are the judge, opponent and the person filing the claim.

Civil Case

Small claims courts allow only civil cases, not criminal cases. Civil cases include property damage, defective products, fraud, unpaid debt and personal injury.

Maximum Claim

Each state has a maximum claim limit that ranges from $1,500 in Kentucky to $15,000 in Delaware, Georgia and Tennessee. Two counties in Tennessee have a small claims court limit of 25,000. Other states also have varying claim limits based on the county.

Statute of Limitations

There is a time limit after the incident occurred that the claim can be filed. Just like the monetary claim limit, the time limit for filing claims varies by state. The time limit also varies based on the type of incident. For example, in Arizona a person has three years to file a claim for an oral agreement breach, while only two years are allowed for property damage.

Demand Letter

Before taking a claim to court to be settled, courts will often require that an attempt first be made to settle the dispute privately by phone or in writing. A demand letter is a letter requesting payment as well as a deadline. If the claim does end up in court, the copy of the letter as well as the confirmation of delivery receipt can be used as proof that an effort was made to settle the dispute.

Other Considerations

People should always try to settle a small claim privately prior to legal action. This should be done with a demand letter at first; another letter should be sent after filing the claim but before going to court. Any agreement reached outside of court should be in writing and signed by both parties.

References

• LegalZoom: Small Claims Education Center