Basics Relating To Small Claims Court

Courts of limited jurisdiction, small claims courts help resolve simple disputes quickly and economically. If you are a landlord trying to get back rent payment from a tenant when arbitration / mediation, including other measures have failed, you could go to a small claims court to help resolve the issue. Here, no lawyers are required to represent the two parties, and the procedures in small claims court are much more informal than in other types of litigation. Judgments are usually rendered immediately after the hearing, and both plaintiffs and defendants have limited appeal rights.

Since, individuals or small business owners file small claims actions without the assistance of lawyers, most states provide information and assistance to involved parties in these actions. A comprehensive list of links to each state’s self-help resources and information centres can be found at the National Centre for State Court’s Web site, and a guide to Small Claims Court with information on each state’s rules and requirements can be found at ConsumerAffairs.com.

Small claims courts serve to resolve the following disputes:

1. Dollar Limits. Comparatively small dollar amount disputes are resolved in small claims courts, with dollar limits ranging from $1,500 in Kentucky and $2,000 in Massachusetts to $10,000 in Alaska and New Mexico and $15,000 in Delaware, Georgia, and Tennessee. You can find a chart listing the small claims court limits for each state at Nolo.com.
2. Statutes of Limitations. Statutes of limitations are laws that set a deadline or maximum period of time, within which a lawsuit or claim may be filed. Deadlines may vary depending on the circumstances of the case, as well as, the type of case or claim. The time period also varies from state-to-state. If a lawsuit or claim is not filed before the statutory deadline, the right to sue or file a lawsuit or claim is barred, though under certain circumstances, a statute of limitations can be extended beyond its deadline. Statutes of limitations apply to actions filed in small claims court, as well as other courts.
3. Types of Disputes. Usually, the types of disputes and claims brought to small claims court range from:
   • Failure to repay a loan;
   • Failure to provide personal service;
   • Failure to pay for personal services;
   • Failure to fix a car or other major appliance properly;
   • Landlord/Tenant disputes (i.e., failure to return security deposit, destruction of rental property);
   • Debt collection;
   • Return of personal property;
   • Claims for equitable relief; and
   • Breach of warranty (claim that an item purchased does not work the way it is supposed to work).

   But, divorce proceedings, bankruptcy proceedings, guardianship proceedings, suits against the federal government, federal agency, a federal employee and criminal proceeding cannot be filed in a small claims court.

   Landlords should make an attempt to settle disputes with tenants prior to filing a claim in the small claims court. Before suing in a small claims court, make one more demand on the tenant for back rent payment, or payment for damage to your rental unit, etc. Make the demand in writing, as you may be required to demonstrate to the judge, several attempts were made to settle the dispute before filing your claim in the small claims court.

4. Where to File. A small claims court action is generally filed in the state in which the party being sued resides or does business, or where a contract was signed.If the defendant (tenant) has moved to another state and has no contact or business in your state, you will likely have to sue in a state, where the defendant resides or does business. Though, it is best to remember filing a small claims court action in another state can prove to be an unwieldy, complicated, and expensive process. It may not make sense to pursue the dispute in this manner.
5. Notify the Defendant. After filing your claim in a small claims court, give the defendant a copy of your claim before the case is scheduled for hearing. It is the responsibility of the person filing the claim notify the defendant, including bearing the cost of the notification.Defendants can be notified either by:
   1. Certified mail by the court clerk;
   2. Personal service by process server; or
   3. Substitute service by process server at the defendant’s home or place of business.
6. Case Preparation. Prepare your case as thoroughly as possible. Get together the necessary paperwork and witnesses if any, asking them to appear in court on your behalf. Try and foresee what the defendant will say and what evidence he / she will bring to court. Prepare notes on what is to be asked of the defendant and what you will say to the judge.Make a visit to the small claims court where your claim will be heard, sitting through a couple of claim cases to familiarise yourself with the entire process and the judge’s temperament.
7. Court Day. Ensure you have all of your documents and all your witnesses are available for court. Arrive early, get organized and stay relaxed. Courtroom procedures are informal, and the judge will guide you on how to proceed.
8. Explain your case briefly and succinctly. Answer all the judge’s questions. Be prepared to explain the money amount claimed. Do not argue. In case you win, ask the judge to award you court costs and any other costs reasonably incurred in bringing the action to court.
9. Appealing Small Claims Court Decisions. Appealing a small claims court decision is limited for both plaintiffs and defendants. Many states only allow the party who sued to appeal. In others, a decision can only be appealed if there was a mistake of law, not a mistake in the facts of the case. Typically, a very short time frame is allowed to appeal a small claims court decision within, generally 10 to 30-days after the decision was rendered.
10. A party may be represented by a lawyer on appeal of a small claims court decision. Lawyers are allowed for appeals as small claims court decision appeals are heard in formal court. And, while lawyers are allowed for small claims court appeals, the court proceedings still remain informal. It is up to you, whether you wish to hire a lawyer for an appeal.

But, if you carefully select and screen your prospective tenants, you can avoid having to sue or go to a small claims court. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.