What is Small Claims Court?
Small claims court is a special type of court designed to resolve civil disputes involving small amounts of money in a simplified, inexpensive, and faster way than in a regular civil court. You don't need a lawyer to represent you; in fact, some states don't even allow them. It's often called the "people's court" because it's accessible to the average person.
Common types of cases include contract disputes (e.g., a contractor didn't finish a job), property damage (e.g., a car accident), or disputes with a landlord over a security deposit.
Is Small Claims Court Right for You?
Before filing, consider the following:
- Monetary Limit: Each state sets a maximum amount of money you can sue for in small claims court, typically ranging from $2,500 to $25,000. If your claim is for more than the limit, you'll need to either reduce your claim to the limit or file in a regular civil court.
- Can You Collect? Winning your case is only half the battle. If the person you sue (the defendant) doesn't pay voluntarily, you will have to collect the judgment yourself. If the defendant is "judgment-proof" (meaning they have no income or assets), you may never see your money.
The Steps in a Small Claims Case
Step 1: Send a Demand Letter
Before you file a lawsuit, it's almost always a good idea to send a formal "demand letter" to the other party. In this letter, you should clearly state what you are owed, why you are owed it, and give the person a deadline to pay. This shows the court you made a good-faith effort to resolve the dispute before suing. Sometimes, a demand letter is all it takes.
Step 2: File the Court Forms
To start the case, you'll need to fill out a form, typically called a "Statement of Claim" or "Complaint." You will file this with the court clerk in the correct county and pay a small filing fee. You'll need the defendant's full name and current address.
Step 3: "Serve" the Defendant
After filing, you must formally notify the defendant that they are being sued. This is called "service of process." Rules for service vary by state but often involve having the papers delivered by a sheriff's deputy, a professional process server, or by certified mail.
Step 4: Prepare for Court
Gather all your evidence. This includes contracts, receipts, photos, emails, and any other documents that support your case. Organize them so you can present them clearly to the judge. You should also prepare a brief, chronological summary of what happened. If you have witnesses, make sure they are able to come to court on the hearing date.
Step 5: Your Day in Court
On your court date, arrive early and dress professionally. When your case is called, you will present your side of the story to the judge. Speak calmly and clearly, and present your evidence. The defendant will then have a chance to present their side. The judge may ask questions and will make a decision, either at the end of the hearing or by mailing it to you later.