Small claims court can provides an informal means of settling small claims issues between individuals or an individual and a business entity in a relatively quick an inexpensive manner. At one time the limit for small claims court was $1000. Today, these courts still handle claims for smaller sums though now they may reach as much as $10,000. The amount is set by each state. The first small claims court was established in 1913 and operated in Cleveland. It wasn’t long before the other states offered the service to their residents.
Informal
Small claims courts grew in popularity because of their informal nature which allowed the average person to represent himself without the added cost of hiring an attorney. Though most individuals represent themselves, an attorney can represent the either party if they so desire. In many states, corporations are required to use the services of an attorney. This simplified approach relaxes, to some extent, the requirements for evidence and the civil procedures that are customarily used in cases with higher dollar amounts at stake.
Process
While the process varies from state to state, the basics are similar. The person with the grievance, or the plaintiff, completes a form from the local court administrator, usually the clerk of the circuit court. To complete the form, the plaintiff must supply the correct names and addresses of all defendants, make a simple statement of the dispute, and state a claim for the amount of money involved. A filing fee established by each county is required. The documents are served on the defendant either through certified mail or by the county sheriff’s office in most cases. Serving the documents will also require a small fee. If the plaintiff is successful, these fees can be added to the amount of the judgment.
A court date is set and both parties appear before the judge. If the defendant doesn’t dispute the claim, a judgment is entered and defendant is responsible for paying the debt. If there is a dispute, the case may be heard immediately or another court date may be set for a bench trial, depending on the procedures in that jurisdiction.
In some cases, the defendant doesn’t appear in court. The judge, at his discretions and in accordance with laws governing small claims disputes in that state, may award the judgment to the plaintiff, providing there is proof that notice of the claim was served upon the dependent.
Types of Cases
Small claims cases are low-dollar civil cases. No family law such as custody or divorce and no high-dollar litigation may be head in small claims court. Medical entities, utilities and credit card companies bring a large number of the small claims cases against individuals to court. Other common disputes heard in small claims court are tenant and landlord issues and when customers refuse to pay for services leaving the service provide little recourse for collecting their fees.
This article is in no way intended to take the place of legal advice. The intent is to familiarize the reader with small claims court is and the basic premise of how it operates. If you are considering a small claims case, do your research and if necessary, consult with an attorney. Many offer free initial consultations.