Small Claims Court

• Author: Jeffrey Lehman, Shirelle Phelps

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A special court, sometimes called conciliation court, that provides expeditious, informal, and inexpensive adjudication of small claims.

Every state has established a small claims or conciliation court to resolve legal disputes involving an amount of money that is less than a set dollar amount. At one time, $1,000 was the limit. However, many courts have raised the limit to $3,000, and a few will hear disputes involving amounts of up to $5,000 or more. Small claims courts and the rules that govern them emphasize informality and timely resolution of disputes. Most parties represent themselves in small claims court, in part because the facts of the dispute are simple but also because it makes little economic sense to pay attorneys' fees.

The first small claims court was created in Cleveland in 1913. Within a few years every state had such a court of limited jurisdiction. Small claims courts are attractive for consumers who want to collect a small debt or recover damages

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A sample application to file a small claims (commercial) complaint

for a faulty product or for shoddy service. However, small claims courts are used heavily by businesses and PUBLIC UTILITIES that want to collect payments from customers for unpaid bills. In a single court session, a department store, utility company, or hospital may obtain judgments against a long list of debtors, making the process very economical.

To bring an action in small claims court, a person must complete a form that is available from the local court administrator. The person must provide the correct names and addresses of

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all defendants, make a simple statement of the dispute, and state a claim for the amount of money involved. As plaintiff in the action, the person must pay a small filing fee, usually less than $100, to the court administrator. If the plaintiff is successful in the lawsuit, he can recover the filing fee from the defendant, together with any money awarded.

A copy of the plaintiff's statement must be properly served upon the defendant or the action will be dismissed. In some states a deputy sheriff or a process server must personally serve a small claims court summons and complaint for a small fee. In many states, however, service can be accomplished by mailing a copy of the complaint to the defendant. In these jurisdictions it is essential to have an accurate name and address for the defendant.

When the defendant is a...