What is Small Claims Court?
The Small Claims court was created to provide a forum or people to obtain legal relief for small monetary claims without the need for formal legal processes. By using a simplified procedure and by eliminating the necessity of applying the technical rules of litigation, the Small Claims court enables a person to bring a lawsuit, without and attorney, for a monetary claim of up to $3000.00, exclusive of interests and costs. In order to bring a claim, the person being sued (defendant) must reside, or have an office for the transaction of business or regular employment, within the town or village that the court is located. The defendant must have a residential or business connection within the particular town or village in which the court sits.
You may only sue in Small Claims court to recover monetary damages. For example, you would be able to bring an action in Small Claims if you believe that a person or business damaged something you own, and you wish to be compensated. You cannot, however, sue in Small Claims to compel that person or business to fix or replace the damaged item nor to require the performance of an act promised by the person or business.
Who Can Use Small Claims Court?
Anyone over 18 years of age can bring an action in Small Claims. If you are younger than 18, your parent or guardian may file the claim on your behalf. Corporations, partnerships, associations, or assignees cannot sue in Small Claims, but they can be sued as defendants.
You must have a genuine complaint or conflict with the party you wish to sue, and you may not claim damages over $3000.00. However, if you feel that you have a claim of more than $3000.00, and are willing to settle for less to save the cost of regular court cases, you may still sue in Small Claims, but the monetary limit of $3000.00 is the maximum that you may recover.
How Do I Start A Small Claims Case?
You must go to the Small Claims court to file a statement of you claim. You should be prepared to give a brief statement of the facts that form the basis for your claim. Check any documents relating to your case for relevant dates and names. If you are suing for property damage or a breach of contract, you may also claim interest as well as damages. You will be required to pay a nominal filing fee. You should contact the Small Claims court where you are filing your claim to find out the amount of the required filing fee. The fee includes the cost of filing the claim as well as the cost of mailing the notice of claim to the defendant.
The notice of claim provides a brief statement of your claim, including the amount you are seeking to recover, and advises the defendant when the case will be tried. Once the claim is filed in the clerk's office, the clerk will send the notice of claim to the defendant via first class and certified mail with return receipt requested. If the copy of the claim sent via first class mail is not returned as undeliverable within 21 days, the defendant is presumed to have received notice of the claim.
If the post office fails to deliver the claim, the court will set a new trial date and advise the person suing (claimant) how to arrange for personal service of the notice of claim on the defendant. Any person 18 years of age or older, who is not a party to the action, may personally serve the defendant. If service of the notice of claim cannot be made upon the defendant within four months of the date when the action was first commenced, the action will be dismissed without prejudice. An action dismissed without prejudiced means that the action could be brought again at a later date when the defendant has been served with the notice of claim. A Small Claim case will not proceed to trial until the defendant has been served.
Once the claim has been filed and the action commenced, the clerk of the court will furnish every claimant with information concerning the Small Claims court procedures. It will include information on terms and procedures, adjournments, counterclaims, jury trial requests, subpoenas, collection methods and fees, and more.
The following is a list of some of the local Small Claims courts. For a jurisdiction not listed below, look in the government section of the telephone directory under City, Town or Village Offices. If a direct number for Small Claims is not listed, call the county clerk or town clerk office.
Must I Know the Defendant's Correct Name?
When filing a Small Claims case, the claimant must provide the name and address of the person or business being sued. You should first go to the office of the County clerk in the county where the business is located to find out who owns the business and the legal name that is operates under. If you do not know the correct legal name of the defendant, you can sue using any name under which the defendant does business.
What Is a Counterclaim?
A counterclaim occurs when a defendant wishes to file a claim against the claimant in the same case, also not exceeding $3000.00. A defendant must file a counterclaim within five (5) days of receiving notice of the claim. There is also a small filing fee for the counterclaim of about $5.00, which includes the cost of postage. You should contact the clerk of that court to find out the amount of the counterclaim fee. The clerk of the court will send notice of the counterclaim to the claimant via first class mail. The reply to the counterclaim, but is not required to so. The counterclaim may be any claim by the defendant against the claimant, whether it arose out of the same transaction as the claimant's claim or not. The issue of the counterclaim must also be within the jurisdiction of that particular Small Claims court.
Preparing For Trial
The case is heard by a judge, or, if all parties consent, by an arbitrator, who is a lawyer. If you choose an arbitrator, your case will be heard much sooner than with a judge and in an informal setting, rather than in a courtroom. You must understand that an arbitrator's decision is binding and may not be appealed. Proceedings are simple, each side having the opportunity to explain its position, produce witnesses and documentation.
Do not hesitate to have your case tried by an arbitrator. He or she will apply the same law to your case as the judge would apply. The hearing before an arbitrator is less formal, and you may not be as nervous as you might be before a judge. When an arbitrator determines a case, the decision is final and further appeal by either the claimant or defendant is unavailable.
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Evidence
Before trial, you should gather all the evidence necessary to prove your claim or defense. Anything that will assist you in proving the facts in dispute should be brought to court. Make certain you bring original documents – photocopies will not suffice. This includes photographs, written agreements, an itemized bill or invoice, written estimates of the cost of service or repairs, a receipt for the purchase of an item or the payment of a debt, canceled checks and correspondence. If you rely on estimates, two different written itemized estimates of the cost of repairs or services are required. If possible, merchandise that is in dispute should be brought to court.
Testimony, including your own, is evidence. Bring any witnesses whose testimony is pertinent to the case. This can be a person who witnessed your transaction or someone whose special knowledge and experience makes him or her an expert on the cost of services or repairs.
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Subpoenas
If you are unable to get a witness to appear voluntarily, you may apply for the issuance of a subpoena to the clerk of the Small Claims court. A subpoena is a legal document that commands the person named in the subpoena to appear in court. A subpoena duces tecum is a legal document that directs someone to produce a bill, receipt or other written document or record you require. Either party may apply for a subpoena up to 48 hours prior to trial. Any party not responding or complying with a valid subpoena may be subject to contempt of court.
How is a Trial Conducted?
When your case is called, both parties will go before the judge and tell their version of the events. The claimant will have the first opportunity to present his or her evidence. Tell the story in your own words. Be calm and just give the honest facts. You may ask question of other parties and of their witnesses, or the judge may do so.
After both sides have presented their evidence, the judge will consider the evidence and render a decision. The judge may tell you immediately, but will usually mail the decision within a few days of the hearing.
What Happens if One Party Does Not Appear?
If the claimant does not appear in court when the calendar is called, the case will be dismissed. If the defendant does not appear, the court will conduct a hearing. The claimant will go before the judge to present evidence to prove his or her case without the defendant presenting any evidence. If the claimant's case is sufficiently proven, a default judgment will be awarded against the defendant.
If a default judgment is granted because the defendant fails to appear, or the case is dismissed because the claimant did not appear, the losing party may ask the court to re-open the case and restore it for trial upon a showing of good cause. Contact the clerk for the Small Claims court for the proper procedure.
Settlements
Parties to a Small Claims action are encouraged to settle their cases whenever possible. If the case is settled prior to the day of trial and the money has been paid, notify the clerk by mail. You will not have to appear before the court.
If a case is settled but the money has not been paid, or if settlement talks are not completed, the claimant may wish to appear in court so that the case is not dismissed and ask the judge for an "adjournment pending settlement."
Can I Appeal The Case if I Lose?
You may appeal the decision if a judge tried you case, but not if it was decided by an arbitrator. Technical mistakes made during the trial are not grounds for reversal. The appellate court will consider only whether the court rendered substantial justice.
If you do decide to appeal, you must file a notice of appeal and pay the required fee within 30 days after the judgment is entered. The party appealing the judgment can temporarily prevent its enforcement pending the decision on appeal. A bond must be filed with the court to guarantee payment of the judgment should the party lose the appeal.
How Can I Collect My Judgment?
Winning a judgment does not guarantee you will collect. The court provides some help in collection. However, you must take the necessary steps to obtain payment of your judgment. After winning a judgment, you should try to contact the losing party to collect your judgment. If the defendant does not pay, you may need the services of a law enforcement officer, a sheriff, city marshal or constable. You must provide this officer with the information needed to locate assets (money or property) of the defendant, and the enforcement officer then can seize those assets to satisfy your judgment. Properties that may be reaching include bank accounts, wages, real estate, automobiles, stocks and bonds.
If a judgment has been entered and remains unsatisfied, the Small Claims clerk, upon request, will issue information subpoenas for the judgment creditor and provide the creditor with assistance on their preparation and use. Contact the clerk of the Small Claims court for more details and the proper procedure to satisfy a judgment.
Packet Published 1997, 2001
Researched and composed by Keith Miller.
Revised by Tracy L. Rafuse 1997, John Menard 2001
SBI Legal Assistance Director: Alex Melville