How Does Small Claims Court Work?

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Most states have Small Claims Courts that are designed to provide an inexpensive and speedy method of handling disputes involving damages of several thousand dollars or less.

Each state has a maximum amount that the Small Claims Court will consider. If the amount of your dispute exceeds the maximum amount, you may want to reduce your claim to the maximum amount allowed, thus saving the expense of filing the case in regular court.

The procedures of the court are informal. Some allow an attorney to be present, but the primary purpose of these courts is for the individual parties to tell their sides of the issue, and have the judge decide the matter. Sometimes Small Claims Court will also provide mediation services. An independent mediator will meet with the parties to try to work out a compromise agreement or settlement.

Certain kinds of claims are not allowed in Small Claims Court. For example, you may not be permitted to file criminal or slander cases. Also, you shouldn't file complex cases in Small Claims Court. Finally, consider whether the other party has the resources to pay. Obtaining a judgment against the other party is not worthwhile if you can't collect. Small Claims Court is not the answer for claims against 'fly-by-night' operations or companies no longer in business.

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This content is for information only and may be incomplete. It is not intended to be legal or tax advice.
You are encouraged to consult with your own attorney, accountant or other advisor.

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