What is a Small Claims Court?
Small claims court is a specialized branch of the judicial system that deals with minor civil matters and is designed to be a more cost-effective and efficient alternative to the traditional civil court system. It’s generally used to resolve financial disputes that involve relatively small amounts of money. Each state has its own laws governing small claims court, including the maximum monetary limits for disputes (for example, in Pennsylvania, the limit is currently $12,000, though it was only $8,000 when we started this blog in 2008) and the procedures for filing a small claim, but the process is fairly similar across jurisdictions.
Small claims court cases tend to fall into one of several categories, including:
Many people make the mistake of assuming that just because a matter relates to their business that they cannot bring it in small claims court. This is often not the case. In Pennsylvania, for example , if two businesses enter into a contract to deliver goods to one another, and breach of contract occurs, as long as the amount in controversy is below $12,000, either party can file a small claim.
Many businesses and individuals opt to bring a case in small claims court because it gives them a less time-consuming, less expensive way to resolve their dispute than filing in the standard civil court system. This is particularly true for smaller, relatively straightforward matters involving damages or the return of money, property or collateral. The parties generally represent themselves in small claims court, though some jurisdictions allow counsel to represent a party in small claims court when both parties are businesses (as the rationale for small claims court does not apply as well in those situations). The often quick resolution of cases in small claims court is another attractive benefit of bringing a case in this forum.
What is a Civil Court?
Civil Court is a branch of the judiciary that deals with civil cases, or disputes between individuals or organizations. Such disputes may involve contracts, property, family matters, and more. Civil court is distinct from criminal court, which deals with criminal charges brought by the government against individuals or organizations accused of committing crimes.
In civil court, the objective is to resolve disputes in a fair manner, ensuring that all parties are treated equally before the law. It is designed to be a forum for the determination of rights as between individuals. The purpose of civil court is to resolve disputes fairly and equitably by adjudication. The main remedy given by civil courts is an award for damages; but sometimes they also grant other relief such as restitution, declaratory judgments, injunctions, landmark decisions, specific performance, rescission, and declaratory judgment.
There are a number of different types of civil court. The most common include:
Large court and small court share certain similarities such as:
However, there are some key differences between small court and civil court.
Small Claims vs Civil Court: Main Differences
There are several notable discrepancies between the two forms of court. For example, the rules that govern small claims courts vary by state. This means that the law covering small claims in one state may be drastically different from the law in the neighboring state. The laws that cover civil court proceedings, on the other hand, are governed by federal law. These laws are applicable throughout the country.
The most apparent difference between the two forms of court are their monetary limits. In civil court, the plaintiff may initiate a proceeding as long as the damages he or she is seeking do not exceed $75,000.00. In small claims court, each state has its own rules that govern the range of damages that can be claimed, but typically encompasses claims that do not exceed $5,000.00. California, for example, typically does not allow a plaintiff to claim more than $10,000.00 in a small claims proceeding. For most other states, however, the amount claimed should not exceed $3,000.00. Deviation from this figure may result in the case being disregarded. As such, it is important for plaintiffs to be aware of the quantity of damages they are eligible to claim before expeditiously filing in small claims court.
Another critical difference includes representation throughout the proceeding. Parties in a small claims court proceeding do not have the luxury of hiring legal counsel to represent them. Although some states do permit plaintiffs to have counsel present, the courts uniformly prohibit defendants in small claims court from employing legal counsel. On the contrary, there is no similar restriction placed on defendants in civil court cases. This is why defendants are encouraged to seek legal advice, regardless of whether they are in small claims court or civil court.
Unlike civil court proceedings, plaintiffs and defendants in small claims court must represent themselves, which means that they will be unable to submit formal documentation to support their case. Civil court, however, offers substantial leeway when it comes to the use of documentation. Specifically, parties litigating their case in civil court are permitted to submit various documents, including contracts, medical evidence, and photographs.
Due to the limited number of parties that small claims court can accommodate, attending a hearing convened by this court can be extremely quick. Many issues are resolved in a matter of minutes. In contrast, parties that appear in civil court can expect their case to last for hours, and in some cases, days.
Making the Decision: Which Court to Choose?
When deciding whether to file in small claims or civil court, consider the following factors:
Complexity of Case: If the case involves multiple parties, many witnesses, or will have more advanced damages calculations, consider civil court. If the case revolves around one clear issue and is unlikely to get more complex, consider small claims.
Desired Outcome: If you are looking for specific non-monetary relief (injunction, legal protection, etc.), you must file in civil court. If you are seeking money damages only, it is better to file in small claims.
Required Discovery: If you are thinking of forcing the disclosure of information from the other side or would like to use formal discovery tools, you will need to file in civil court.
Preparing a Case for Small Claims Court
Filing the Claim: The first step in this process is preparing and filing the claim in Small Claims Court. Keep in mind that Small Claims Courts are limited in their ability to grant monetary relief. If the amount being sought exceeds this limit then the matter will have to be filed in Civil Court. Generally speaking, the amount that the Small Claims Court can award is $5,000 for individuals, sole proprietorships and partners. However, corporations may seek up to $9,000 in damages.
Preparing Your Evidence: After the claim has been filed certain documents and evidence will need to be prepared at least twenty-four hours in advance of the court date. It is important to make sure you are organized so that you come fully prepared to the court hearing.
Bring with you:
Be prepared to explain:
- Why you are asking the court for compensation;
- When the problem started;
- Where the problem occurred;
- How much money you should be compensated for the problem you are asking the court for help with; and
- Why you deserve compensation.
Taking the Stand: When you arrive at court a clerk will call all parties into the courtroom . The judge will then ask everyone to sit. If you have asked to be called as an expert witness then you will need to wait outside and be called by the bailiff until your turn comes.
The judge will call cases in the order they are on the calendar, so be prepared to spend some time in the court room. As soon as the judge calls your case you will be asked to come forward with all of your documents and evidence. This may include:
• Documents
• Photographs
• Contracts
• Records
• Receipts
• Bills
• Proofs of Payment
• Written Agreements
• Estimates
Keep in mind that these documents may be required for both the plaintiff and the defendant. For defendants, prepare to bring these documents to court unless there are objections from the other party about receiving it late. If the judge excludes your evidence because it was not received in time, you can still ask the judge for permission to submit the evidence with a written explanation as to why it was late.
There are two hearings available in a Small Claims Court, the pretrial hearing and the trial hearing.
Navigating a Trial in Civil Court
Once you’ve filed your lawsuit, if the other party does not settle, a trial will be the next step. In a civil court trial, a judge (or sometimes a jury) will listen to both sides present evidence, decide the case based on that evidence, and enter judgment.
The judge presides over the entire trial, unless he or she must attend to other matters. The judge also decides whether particular evidence is admitted. The judge may even rule on the outcome. For example, if a party requests summary judgment, the judge may rule on that request before any facts are even presented. The trial begins with jury selection, if a jury is used. Otherwise, the judge may ask questions about the nature of the case. Then, both sides make statements known as opening statements. The plaintiff is allowed to explain what happened and give an overview of what the evidence will show. The defendant then presents an overview of what the evidence will show. Opening statements do not present any facts or evidence. The plaintiff usually goes first in presenting evidence. The plaintiff’s attorney asks questions, introduces exhibits, and reads in documentary evidence. Presenting evidence is much like the demonstration at a small claims trial, except that this time the lawyers take charge. Most likely the plaintiff will give testimony and the plaintiff’s expert witnesses may start to provide expert testimony. As with the plaintiff, the defendant is able to go over evidence with witnesses. This process is also just like the demonstration in a small claims trial. After the evidence is introduced, each party has the opportunity to make closing arguments.
Once the fact-finding has been completed, the judge (or jury) will reach a verdict. Verdicts are rendered and entered upon the Court’s judgment. A judgment takes the information presented at trial and applies the law to those facts to reach conclusions about the rights of the parties. The judge typically takes some time after the trial to make a decision, but doesn’t usually deliberate between witness testimonies. In federal court, particularly in civil cases, judges rarely use juries. Juries find most often in criminal cases. In the District of Columbia Court of Appeals, juries are almost never used.
In some cases, the judge will enter a directed verdict in favor of a party. This can happen if the evidence at trial is so one-sided that the judge decides that one party is entitled to a verdict as a matter of law. In such a case, the judge must view the evidence in the light most favorable to the opposing party.
If a party believes the judge made a mistake, or that proper procedure was not followed, the party may appeal to a higher court. In a small claims court, there is no possibility of an appeal.
Small Claims Court vs Civil Court: Pros & Cons
As with any legal process, both small and civil courts have their respective pros and cons. On the upside of small claims are the simple, informal route that small claims suits take, along with their limited financial exposure. On the other end of the spectrum, small claims suits can often times be limiting when it comes to the jurisdiction they represent, as well as the damages that are eligible for recovery. Since small claims courts are only available for people to seek an award of money damages, they do not resolve disputes involving non-monetary relief .
Contrarily, pursuing a claim through a civil court can be beneficial because the dispute is properly vetted by an attorney or a judge who will review the evidence and applicable law on the subject matter at hand. In addition to being relatively inexpensive, the case can be resolved more quickly than civil cases, which can be a pro or a con depending on the facts of the individual situation. This pros and cons dynamic applies to the complex legal and evidence rules that apply in civil litigation in contrast to the flexibility that is often afforded to individuals in small claims suits.