The purpose of the Small Claims Court is to allow people to resolve their disputes quickly and cheaply for claims that are typically less than $ 10,000. Knowing when to use them, on the other hand, is a little more complicated. Here’s a look at when they’re worth your while.
When should you go to a small claims court?
Small claims courts are a good option when you want a judge to make a decisive decision in disputes involving money – but not too much money. The maximum dollar amount can vary from $ 3,000 to $ 10,000 in most states, but some can go up to $ 25,000 (you can check your state’s maximum Here).
Low-profile judges can only give monetary judgments, which means they don’t order people to disapprove of things like loud music or to include people in drug rehab programs. Depending on the stateLawyers are admitted to the courts for small claims, but are not allowed to charge any fees. In general, the procedures are less stringent than regular courts, and people tend to represent themselves.
So what kind of disputes can actually be brought to court? While the types of cases that qualify vary from state to state, here are some common scenarios:
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- You borrowed some money and the debtor did not pay it back.
- You paid for car repairs that weren’t properly done by a mechanic.
- Your former landlord did not refund your deposit and did not provide a reason for keeping it (the latter is) required in most states).
- A contract or warranty has been breached by the other party and you are seeking monetary damages.
On the flip side, there are a few things you can’t take to a small claims court: divorce, defamation (in some states, false arrests, guardianship disputes, and complaints from federal employees against the government (these must be filed with certain federal courts).
Your biggest consideration is cost
Just because it’s called the “Small Claims Court” doesn’t make it worth the cost. The most important question is whether it is really worth your time. Let’s say you need to get off work to appear in court to have a $ 2,000 worth of dispute. Once you factor in your total costs, including lost wages (time costs) and fees, filing a claim can cost you anywhere $ 100 to $ 2,000what may cancel out your financial gain.
In some cases, you can too Ask for court costs to be included in what the defendant owes you. If the court rules in your favor, you may be able to amortize the court costs upfront. However, if the court rules against you or comes up with an intermediary agreement where both parties run away with something, you will likely not get the money back.
First, consider other options, such as: B. mediation
Bringing disputes to small claims court is not your only legal option, and it may not be the best option for you either. Consider these options first as they take much less time than the trial:
- Meditate skips a trial in favor of a voluntary, mediated settlement between the plaintiff and the defendant. An external mediator, often a lawyer, brings both sides together and acts as an arbitrator until a mutually agreed solution is reached. Mediation is especially useful if your argument is about someone you know or who is otherwise in a long-term relationship (such as a business partner or neighbor) and there is some willingness to compromise. Most small claims courts have policies that encourage or even mandate mediation and are therefore usually cheaper than trial (in fact, some mediations are free). However, if you are looking for a judgment that is 100% in your favor, a brokered settlement may not be for you.
- Arbitration is a similar process within small claims courts where both parties agree to have their dispute resolved through a third party, in this case an arbitrator, who in turn is usually an attorney. The difference is that the arbitrator makes a final decision that is legally binding on both parties. Since there are many more volunteer arbitrators than judges, opting for arbitration will resolve the dispute much faster (and usually cheaper) than in court, although this is usually more expensive than mediation.
- File a complaint with an impartial agency / manager: If your complaint concerns a private company, try contacting a corporate office. If you have a dispute with your landlord, you can try reaching out to your local representative Housing association. So all the better if you can solve the problem yourself without the help of the courts.
- Just go ahead: whichever route you take, the court system will cost you money. If a $ 500 worth claim is taking weeks of your life and weighing you down, it may be better for your overall health and happiness to let go of it.
This story was originally published in 2013 and was updated with updated context and new information on April 26, 2021.
