Everybody's Guide to Small Claims Court

CHAPTER

1

Basics of Small Claims Court

Why Use Small Claims Court?

Will Small Claims Work for You?

How to Use This Book

Why Use Small Claims Court?

Small claims court aims to hear lawsuits involving modest amounts of money without long delays and formal rules of evidence. Lawyers are prohibited in some states, including Michigan and California, but are allowed in most. However, the limited dollar amounts involved usually make it economically unwise to hire a lawyer, and disputes are typically presented directly by the people involved.

CAUTION

Check your state’s jurisdictional amount before you file. The jurisdictional amount a small claims judge can award is limited and changes periodically. You’ll want to ensure the jurisdictional amount is high enough to potentially reimburse you fully before pursuing a case in small claims court. If your case is worth substantially more than you can recover, consider consulting a litigation lawyer about your options.

Several significant advantages of small claims court include the following:

You can present your case without paying a lawyer more than your claim is worth.

Filing, organizing, and representing yourself in a small claims case is relatively easy. The complicated legal forms and language found in other courts are minimal. To start your lawsuit, you need only fill out a few lines on a simple form (for example, Defendant owes me the sum of $4,000 because the 2014 Impala he sold me on January 1, 2024 in supposedly ‘excellent condition’ died less than a mile from the car lot).

You aren’t required to use legal jargon and can talk to the judge in plain English when you get to court.

Small claims court doesn’t take long. The court clerk will set a trial date within two or three months after you file your claim. The hearing will likely take 15 minutes or less, and the judge will announce a decision immediately or mail it to you within a few days.

Will Small Claims Work for You?

Before deciding whether small claims court is the right place to bring your case, you will want to answer a fundamental question: Will it be worth the effort? Even in small claims court, you’ll spend a good deal of time preparing. And if you’re the anxious type, the process could cause a few sleepless nights.

Getting a good picture of how small claims court works will help you determine whether your dispute is worth bringing. The best place to start? Learn who can sue, where, and for how much. If success looks within reach, move on to more critical, time-intensive analysis. For instance, you’ll want to do the following:

Learn enough law to answer critical questions. What do you have to prove in your case? For instance, the evidence required will differ in personal injury claims and security deposit disputes. Do you have the evidence needed to win? If so, how much could you win?

Understand how best to prepare and present your case. You’ll need to know the correct papers to file and how to serve them. You’ll also need to know other legal rules and the general process. For instance, will you be required to attend mediation? How many exhibit copies must you bring? How much time will you have to speak?

Finally, and most importantly, will you be able to collect the money if you win? Unfortunately, winning plaintiffs who sue a judgment-proof defendant—someone without collectible funds or assets—recover nothing.

But you don’t need to do all the work on your own. Both plaintiffs and defendants can use this guide’s step-by-step instructions to bring or defend a small claims case successfully.

The first several chapters will help you decide whether you have a case worth pursuing. These chapters cover the basics, not the grand strategies that will baffle and confound the opposition. That comes later (well, sort of—keep in mind that any particular approach is only as good as the facts of the case). You’ll learn about mundane yet critical tasks like locating the person you want to sue, suing in the proper court, filling out the necessary forms, and delivering the documents to the person you’re suing.

Below are checklists of issues plaintiffs and defendants should consider at this initial stage. The following chapters address each area in more detail and include targeted advice for both sides.

Initial Stage Questions for a Plaintiff

1.Do you have a good case? Can you establish or prove everything the law requires (the elements of the action) to win your claim? (See Chapters 2 and 14–22.)

2.How much is your claim worth? If the value is more than the small claims maximum, are you okay with waiving the excess and proceeding with small claims court? (See Chapter 4.)

3.Have you made a reasonable effort to contact the other party and settle the case? (See Chapter 6.)

4.Are you within the deadline (statute of limitations) by which you must file your suit? (See Chapter 5.)

5.Who will you sue, and how must you identify this person or business on your court papers? In some cases, especially those involving companies and automobiles, this can be trickier than you might think. (See Chapter 8.)

6.Which small claims court should you file your suit in? (See Chapter 9.)

7.If your small claims court offers or encourages mediation, do you understand how it works and how best to use it? (See Chapter 6.)

8.Can you make a convincing courtroom presentation? (See Chapter 15.)

9.Assuming you win, is there a reasonable chance you can collect? (See Chapters 3 and 24.)

Initial Stage Questions for a Defendant

1.Do you have legal grounds for a countersuit against the plaintiff? Put another way, does the plaintiff owe you money instead of the other way around? (See Chapters 10 and 12.)

2.Do you have a partial or complete defense against the plaintiff’s claim? In other words, has the plaintiff filed a bogus lawsuit? (See Chapters 2 and 12.)

3.Is the plaintiff’s money demand reasonable or excessive? (See Chapter 4.)

4.Has the plaintiff brought the suit within the proper time limit? (See Chapter 5.)

5.Has the plaintiff followed the correct procedures in bringing suit and delivering the court papers to you? (See Chapters 11 and 12.)

6.If your small claims court offers or encourages mediation, do you understand how it works and how to use it? (See Chapter 6.)

7.Have you made a reasonable effort to contact the plaintiff to arrive at a settlement? (See Chapters 6 and 12.)

8.Assuming you’ll fight the case in court, you’ll typically need proof that your version of events is correct. Do you have the evidence and witnesses to accomplish this? (See Chapters 13–15.)

9.Are you prepared to present your side of the case convincingly in court? (See Chapter 15.)

TIP

Defendants might want to file a lawsuit against you. In addition to defending themselves, some defendants take the opportunity to file a case against the plaintiff. (See Chapters 10 and 12.) This situation could occur if a defendant lost money due to the same events the plaintiff is suing over, and the defendant will win if the judge finds the plaintiff legally responsible for the loss. Defendants’ claims are most common when both parties are negligent, such as in a car accident. In most states, the question becomes each driver’s percentage of fault.

Also, suppose a defendant’s claim is for more than the small claims court maximum. In that case, the defendant could ask the court to transfer the case to a higher court that is more complicated to navigate. (See Chapter 10.)

How to Use This Book

After completing this overview chapter, Chapters 2 and 3 will help you determine whether you have a viable suit and can collect from the defendant if you win. If you answer no to either question, consider settling your dispute without going to court or dropping the idea of a lawsuit. You’ll find help in Chapter 6.

Chapters 4 through 9 walk you through the procedural details. Small claims court should be accessible, but it still has rules you must follow.

Chapters 10 and 11 discuss the paperwork: How do you fill out forms and deliver them to the defendant? Chapter 12 explains what a defendant should do after being sued. Chapters 13 through 15 prepare you for your day in court. Chapters 23 and 24 address how the judge issues a ruling, how to collect your money if you’re successful, and how to appeal an unexpectedly awful day in court.

In Chapters 16 through 22, we discuss strategies you can use to handle common cases. Even if your situation doesn’t fit neatly into one of the categories, read this material. By picking up a few hints here and a little information there, you should be able to piece together a good action plan. For example, you can apply many suggestions on handling motor vehicle repair disputes to cases involving major appliances such as a television, dishwasher, or dryer. However, these days, it’s often cheaper to buy new.

In the Appendix, you’ll find a glossary of legal jargon you might come across in small claims cases and courts. Fortunately, not much of it exists, but a few terms might be new. If you can’t find what you need, check Nolo’s Free Dictionary of Law Terms and Legal Definitions at www.nolo.com/dictionary.

Because state law establishes small claims procedures, rules differ from state to state, including the maximum amount you can sue for, who can sue, and the what, where, and when of filing papers. States even call small claims court (or its equivalent) different things, like justice, district, municipal, city, county, and magistrates court.

Also, plaintiffs and defendants will want to check state small claims court websites early. You’ll find valuable information about your state’s small claims process. Also, check the local small claims court clerk’s office for local rules (local court rules also vary). The bottom line is that understanding details is important, and you must be able to manage state and local small claims court rules comfortably.

Even so, preparing and presenting a legal case is remarkably similar everywhere, and the information in this book will help.

CHAPTER

2

Do You Have a Good Case?

Stating Your Claim

But Is My Case Any Good?

Breach of Contract Cases

Common Contract Rules

Unpaid Debts

Failure to Perform

Personal Injury and Property Damage Cases

Negligence

Intentional Acts

Assessing Your Personal Injury or Property Damage Case

Workplace Discrimination

Defective Product Cases

Breach of Warranty Cases

Types of Warranties

When a Breach of Warranty Occurs

Professional Malpractice Cases

Nuisance Cases

Stating Your Claim

One of the advantages of small claims court is that when you file, you aren’t required to present theories of law. Instead, you state the facts of the dispute, that you have suffered monetary loss, and that the person or business you are suing caused your loss.

In your complaint or claim, you will briefly describe the dispute. (We’ll review the forms you’ll file to start your lawsuit in Chapter 10.) Depending, of course, on the facts of your case, you will state your claim more or less like this:

John’s Dry Cleaners ruined my jacket on December 13, 20xx.

His dog bit me on the corner of Rose and Peach Streets in West Covina, California, on April 27, 20xx.

The car repairs that Joe’s Garage did on my car on July 11, 20xx, were wrong, resulting in an engine fire.

Landlord refused to return the cleaning deposit when I moved out of my apartment on August 11, 20xx, even though I left it clean.

The used car I purchased from her on January 26, 20xx, in ‘tiptop condition,’ blew a gasket the next day.

The $5,000 I lent the defendant has not been repaid by November 12, 20xx, as promised.

Time to Get Organized

Before filing your case, you should set up a system to safeguard key papers and evidence. It’s no secret that lawsuits have been won (or lost) because of record keeping. One excellent approach is to get a few manila envelopes or file folders and label them with the name of your dispute (Lincoln v. Williams). Use one folder to store all documentary evidence, such as receipts, letters, witness contact information, and photographs. Use the other for court papers. Once you have it all organized, make sure you conscientiously store your folders in a safe place.

TIP

Don’t argue your case in your claim. When stating your case on the court forms, your goal is to notify the other party and the court of the issue in dispute. You don’t need to list your evidence or try to convince anyone that you are right or that the law is on your side. Your chance to do this will come later in court, and prematurely revealing your arguments will give your adversary more time to prepare.

But Is My Case Any Good?

There’s no denying that, as stated above, you can rely on the judge to do the heavy legal lifting. For instance, it’s okay to show up on time, politely explain what happened, and let the judge sift through each side’s presentation and decide the winner.

However, the problem with this approach is that the judge will not decide your case based on what seems morally right (although it never hurts to seize the high moral ground) or on whose presentation and witnesses are more convincing. Basing your case on what you believe or feel should happen is unlikely to be fruitful.

Instead, the judge must apply the same legal rules to your case that would apply in a formal court. Because the judge must follow the law, you’ll be more successful knowing what you must accomplish. It will help you present the proper evidence and witness testimony and convincingly argue you’re entitled to win as a matter of law.

JUDGE’S TIP

Unfair doesn’t automatically mean illegal. Unfortunately, the mere fact that you have suffered a trauma at the hands of another person does not automatically entitle you to a legal judgment. The law must support your position that the illegal actions of another harmed you.

Again, you can use the stay ignorant and trust the judge approach, but it has notable disadvantages. Here are the biggies:

If you don’t understand the legal rules the judge will apply to decide your matter, you might waste time and energy pursuing an unwinnable case.

You might not present the evidence needed to win if you don’t understand what you must prove.

If you lose, you won’t know why (this won’t be problematic if you win—you’ll probably assume it was due to your stellar advocacy skills, and rightly so).

If crafting a case based on nothing but an inner sense of injustice doesn’t sound good, you’ll likely enjoy a more informed approach. Take the time to understand your case’s legal and moral issues. Or, put another way, evaluate your case the way a judge will ultimately view it. Doing so will increase your chances of winning exponentially, and it isn’t as complicated as you might think. Knowing that you’re well prepared has another benefit, too—it will boost your confidence tremendously.

TIP

Defendants need the same legal knowledge as plaintiffs. Every law has several parts, called elements, that a plaintiff must prove to win a case. A plaintiff who fails to prove an element must lose. Defending a claim well requires understanding the essential legal elements the plaintiff must prove. Once armed with this information, the defendant will be in good shape to convince the judge that the plaintiff failed to present adequate evidence and that at least one legal requirement is missing.

The rest of this chapter reviews the legal theories most commonly used to establish legal liability in small claims court. In many instances, this information will be all you need to prepare your case. But occasionally, you will want to do additional legal research, especially if the exact wording of a statute or key court decision has a direct bearing on your case. (See Chapter 25 for more on how to do legal research.)

CAUTION

Check your state’s small claims court rules. Many small claims courts limit the types of cases they will decide in addition to restricting the dollar amount of damages you can claim. For example, your small claims court might allow only breach of contract claims and claims by consumers for damages connected with retail products or services. Ask your small claims court clerk or review your small claims court’s rules to make sure your case can be heard.

Below is a list of common legal theories and what you must prove to establish each. The rest of this chapter reviews each legal theory in more detail. You can determine whether the facts of your case fit the requirements of at least one of them.

Bad Debt. A type of contract case. To prevail, you need to prove the debt exists, its amount, when payment was due, and that the person you are suing owes the debt and hasn’t paid it or has only partially paid it.

Breach of Contract. One or more terms of a valid contract (written, oral, or implied) has been broken by the person you are suing. As a result, you have suffered a monetary loss.

Breach of Warranty. A written or implied warranty (assurance) extended to you by a merchant has been breached and, as a result, you have suffered a monetary loss—for example, a new or used car suffers mechanical problems while still covered by warranty.

Failure to Return a Security Deposit. Another variety of contract case that commonly arises between tenants and landlords. As discussed in more detail in Chapter 20, the tenant needs to prove that a deposit was made, that it was not returned (or only partially returned), and that the premises were sufficiently clean and undamaged when the tenant left so the landlord owes the tenant some or all of the amount withheld.

Libel or Slander (Defamation). To prove a libel or slander case, you must show that the other party said or wrote something untrue about you or your business, that others heard or read it and understood it was about you, and that it really did damage your reputation. (Public figures must also show that the person defaming them knew the offending statement or writing was false or was made in reckless disregard of the truth.)

Nuisance. Someone’s conduct creates a health or safety hazard to you or interferes with your ability to use and enjoy your property. For example, a factory makes so much noise that it keeps you and other nearby residents awake all night.

Personal Injury. The negligent (careless) or intentional behavior of the person you are suing has caused you to suffer personal injury.

Product Liability. You or your property were injured by a defective product. If so, you qualify for recovery under the legal doctrine of strict liability, which holds the manufacturer and seller responsible for the damages you suffered, without your having to prove negligence.

Professional Malpractice. A lawyer, a doctor, or another professional’s failure to use the ordinary skills of members of that profession results in you, as a client or patient, being harmed (in the case of a lawyer or an accountant, you must suffer a monetary loss).

Property Damage. The negligent (careless) or intentional behavior of the person you are suing has damaged your personal property.

CAUTION

Other legal theories exist. The legal causes of action listed above are involved in more than 99% of small claims cases. There are dozens of more obscure types of lawsuits, each with specific legal requirements. If your matter isn’t covered here, research whether your case meets the qualifications of another legal theory. The tip below can help, or visit the self-help department if your court offers such assistance.

TIP

How to find other legal theories. One way to review common causes of action is to thumb through your state’s set of civil jury instructions. Many of the legal theories will apply in small claims court. The beauty of jury instructions is that they list the elements needed to prove a cause of action in plain language, and you’ll find citations to the law as well. Most state jury instructions are available online or at your local law library. Ask the law librarian for help if you’re unsure where they are.

Before considering each legal theory individually, this illustration will help you understand why you must establish all of the following elements:

you have suffered a loss (an injury or damaged property, for instance)

the monetary amount of that loss (many forget to prove this essential element by presenting evidence of the cost to reimburse them), and

the defendant is legally required to compensate you.

EXAMPLE: One night, someone entered the garage in Sarah’s apartment complex, smashed her car window, and stole the purse she left in it accidentally. The purse and its contents were worth $600. After discovering and reporting the theft, Sarah filed suit against the landlord in small claims court. Sarah prepared for her court trial by finding several witnesses willing to testify that her car had been vandalized. She also obtained a copy of the police report she made, several repair estimates for the car window, and proof of the value of her stolen purse.

However, Sarah overlooked one crucial thing—the building owner wasn’t liable for her damages. The contract didn’t require him to keep the garage locked, and he hadn’t orally promised to do so. Also, he had never locked the garage or otherwise led Sarah to believe that he would keep her property secure.

At the trial, the judge determined two critical facts: The tenants knew or should have known that anyone could gain access to the garage from inside or outside the building, and there were no previous instances of vehicle vandalism. The judge concluded that failing to lock the garage wasn’t a contract violation, and that because the landlord had no reason to expect criminal activity, leaving the garage unlocked wasn’t negligent. As the judge explained when ruling for the landlord, Sarah remained responsible, just as she would have if someone had damaged her car on the street.

The outcome might have been different if the facts were changed. Assume Sarah’s lease entitled Sarah to an assigned parking place in a secure garage and that the landlord always locked the garage door. But, under the new scenario, the lock broke. Even though Sarah and other tenants asked the owner to fix the lock the next day, the landlord hadn’t gotten around to it when the theft occurred a week later. In this situation, Sarah should win. The landlord failed to keep the contractual promise to lock the garage even though he’d had plenty of time to fulfill his obligation. A judge could reasonably conclude that the landlord’s breach of contract allowed the thief access to the car.

Breach of Contract Cases

A contract is an agreement between individuals or businesses in which one side agrees to do something for the other in exchange for something in return. For example, A asks B to paint his kitchen for $3,000 and B agrees. Agreements can be written or oral or implied from the circumstances. Contracts made by minors might be invalid if made before the minor turns 18. However, in most states, if a minor makes a contract and then honors it after turning 18, the contract is valid and can no longer be annulled.

All contracts come with an obligation that each party carry out its terms in good faith, and that each contracting individual or business will deal with the other fairly and honestly under the circumstances. On the other side of the coin, courts have found bad faith when one party does something that isn’t in the spirit of the agreement or violates community standards of fairness and reasonableness. Practically, all contracts contain an unwritten good faith requirement. A small claims judge often won’t find in favor of a party who sues based on a highly technical—but obviously unfair or unreasonable—interpretation of contract language. For example, if X agrees to landscape Y’s yard in two weeks, but on the last afternoon doesn’t quite finish because she is called to the bedside of a sick child, a court will not agree with Y’s contention that he doesn’t have to pay for any of the work because X technically missed the 14-day deadline. Instead, a judge will almost surely rule that Y’s duty to carry out the agreement in good faith requires him to allow X to finish the job a few days late.

Common Contract Rules

Before someone can collect on a contract, that person must show that a contract exists. You’ll need to prove the following three elements: One person must offer to sell goods or services; the other person must agree to accept the goods or services; and finally, something of value—such as money or something else—must be exchanged. The exchange is known as consideration. A contract can’t be formed if the offer, acceptance, or consideration is missing.

TIP

Quid pro quo isn’t just for employers and politicians—it will help you spot consideration. Quid pro quo occurs when one party agrees to give something in exchange for something else. Some quid pro quo transactions are forbidden. For instance, a politician can’t agree to provide a country with foreign aid in exchange for dirt on a political rival. And an employer shouldn’t promise a particular employee a raise or promotion in exchange for a back rub behind closed doors. But quid pro quo doesn’t always indicate illegality, just that both parties are getting something out of the deal. You can use the quid pro quo concept to help you remember to look for value exchanged between the parties.

This short summary of familiar situations should help you understand whether you’ve got a valid contract:

A gift is not a contract. A promise to make a gift is not a contract. The reason is simple: The person receiving the gift hasn’t promised to do anything in return. The problem would be the lack of consideration. An enforceable contract must include an exchange or a promise to exchange something of value, such as money for services.

EXAMPLE 1: Elizabeth tells Steven she is experiencing financial problems, so Steven promises to give Elizabeth $750 on January 1. Later, Steven changes his mind after deciding he doesn’t like Elizabeth after all. Can Elizabeth sue Steven for the $750? No. This is not a contract. Elizabeth didn’t promise to do anything for Steven in return for his promise. Steven had only indicated that he would give Elizabeth a gift in the future.

A loan is a contract. By contrast, a loan is usually a valid contract. Each party provides the other something of value: The lender advances the borrower the money, and the borrower agrees to pay it back with interest. The borrower gets the use of the funds, and the lender receives the interest.

An agreement to exchange goods, services, or money is a contract. The most common type of contract occurs when A agrees to pay money to B in exchange for B agreeing to work for A or provide A with valuable goods.

EXAMPLE 2: Steven promises to pay Elizabeth $750 on January 31 in exchange for Elizabeth’s promise to tutor Steven’s oldest son. This is a valid contract because each person has promised to do something for the other (remember quid pro quo?). If Steven fails to pay Elizabeth on January 31 and Elizabeth has kept her part of the bargain, Elizabeth can go to court, claiming breach of contract.

Most oral contracts are valid but can be hard to prove. If a spoken agreement contains all three elements, then it will be valid and enforceable. The problem? Oral contracts can be hard to prove. Even if you can prove it—and you might, so don’t give up—you’ll have to get over a few more hurdles. Generally speaking, oral contracts are not valid if they: (1) can’t be accomplished within a year, (2) are for the sale of real estate, or (3) involve the sale of goods or property worth more than $500. (But this third type of transaction needs very little written proof—a faxed order or a letter confirming a deal will be enough.) Because the great majority of oral consumer contracts—whether to fix a kitchen, repair a car, or deliver a bed—can easily be carried out in less than a year (even if it actually takes longer), if you can prove its existence to the satisfaction of a judge, it can be enforced in small claims court.

Proving a contract by showing someone received a benefit. A contract can be implied where one party has benefited from the other (known as unjust enrichment), and the other expects to be paid for goods or services. This is a tricky area of contract law that occasionally surfaces in small claims cases. The judge will be particularly interested in evidence that the party who received the benefit knew that the service provider expected to be paid.

EXAMPLE 3: Paul asks Gianna if she wants her house painted. Gianna says yes, and Paul paints her house. However, Gianna refuses to pay, claiming that they never agreed on a price so there was no contract. Gianna is wrong. A contract exists when one person does work for another in circumstances where payment is usually expected and the second person accepts it. Consent can be stated, as in this example, or even implied, as would be the case if Gianna simply watches Paul paint her house. In other words, even though one or more technical parts of a contract are missing, when work is involved, the law will require that a person who knowingly benefits from another person’s work pay for it unless it is absolutely clear the labor was donated.

Unpaid Debts

Often, a contract that has not been honored involves a failure to pay money. Hardly a day goes by in any small claims court when someone isn’t sued for failing to pay a phone bill, an overdue credit card balance, or even a friend (former, probably) or relative. (See Chapter 18 for more on small claims suits where money is owed.) In many situations, getting a money judgment for an unpaid debt involves no more than stating that the defendant made a commitment to buy certain goods or services, that they were, in fact, provided, and that a legitimate bill for X dollars has not been paid.

A plaintiff should be ready to prove the following:

the debtor’s identity

the existence of a contract between the plaintiff and the debtor

the plaintiff provided the contractually promised goods or services, and

the debtor still owes plaintiff the contract amount.

If you are a defendant and believe you have a good defense, you’ll typically need to prove the following:

you didn’t receive the goods, services, or loan promised (or the contracted item was seriously defective, or you were harmed by a late delivery), and

you don’t owe the amount