Going to Small Claims Court

If you're involved in an unresolved dispute and mediation is out of the question, consider settling the matter in small claims court. In many cases you can resolve payment disputes with these informal hearings.

If you're a business looking to collect payment from a vendor or client, you

might also find this venue appropriate for resolving the issue. Read Can You Collect Debt Through Small Claims Court? to learn more about this approach to collections.

In small claims court, thorough preparation is your key to success. You probably won't need an attorney (some states don't even allow lawyers in small claims courtrooms), and you won't have much time to present your case.

Contact your municipal court for a guide to preparing your case. The guide outlines the steps you must follow when you file a claim and explains fees, procedures and limitations of small claims court in your state.

Filing Your Claim

In small claims court, the amount of claims cannot exceed certain limits. Maximum claim amounts vary from $2,500 to $7,000, depending on the state. Statutes of limitations also vary depending on the type of damage claim; file your claim as soon as possible to make sure it doesn't expire.

When filing, you need the exact name of the person or corporation you're suing. Include the name of the company if the defendant operates as a sole proprietor. For a partnership, list the name of each partner. Filing fees range from $10 to $65 or more, depending on your jurisdiction.

Usually you need to file in the jurisdiction where the defendant lives or where the company does business, but there are exceptions. Check your municipal court to find out what applies in your case.

Notifying the Defendant of the Lawsuit

As a plaintiff, you'll need to serve the defendant with notification of your lawsuit and its trial date. Most small claims courts schedule hearings within several weeks of the filing date.

When it comes to serving the defendant, follow the rules carefully. Some states won't let you serve the claim yourself. Once again, check with your local jurisdiction to find out whether you should pay a sheriff to serve your notice, send it by certified mail or rely on a friend to deliver it within the specified time period. You must submit proof of this delivery to the court clerk. If you don't, the case could be delayed or even dismissed.

Preparing for Your Day in Court

Like TV's brusque Judge Judy, small claims judges look unfavorably on rambling presentations with little backup documentation. Before you present your case or defend yourself in court, make sure you:

• Talk to witnesses and arrange for them to appear on your behalf, even if that means serving a subpoena to an unwilling witness.
• Collect all evidence supporting your case — contracts, work samples, invoices, receipts, photos, letters from experts and other documentation — and make two copies.
• Write a concise summary of your case and practice your presentation.

Appearing in Court

When you get to court, tell your story calmly, politely and briefly. First summarize your claim and damages, then explain why the other person is at fault. Refer to your supporting evidence and witnesses.

The defendant will refute with his or her own set of evidence and witnesses. The judge will usually give you a chance to reply to the defendant's claims.

The judge may decide the case immediately or take the case under submission and rule later. In either case, you'll receive notification of the judgment via mail.

If the judge rules in your favor, collection is your responsibility. Check with the court regarding how long you must wait to recover your money, what additional forms you'll need to file, for how many years the judgment applies and what legal means you can use to make deadbeat defendants pay. Generally only defendants can appeal decisions; they can also countersue for their own damage claims.

If you're interested in investigating other means of approaching a legal dispute, read Alternate Dispute Resolution.