Small Claims Court: When It's the Right Route

Limits vary considerably by state, commonly ranging from around $3,000 to $25,000. Where your claim exceeds the limit, you may waive the excess to stay in small claims, which is often worthwhile given the cost of ordinary litigation.

Typical uses

Unpaid invoices and unreturned security deposits are the most common claims. Property damage, defective goods, incomplete work by contractors and disputes over services also feature regularly.

The forum suits claims where liability is reasonably clear and the amount is documented. It is less suited to complex disputes requiring expert evidence, since the procedure is compressed and hearings are brief.

Before filing

Send a written demand letter setting out what is owed, why, and a deadline for payment. Many disputes resolve at this stage, and courts frequently expect to see that an attempt was made.

Send it in a way that produces proof of delivery. Keep a copy.

Confirm the defendant's correct legal name and address. Suing a business under a trading name rather than its registered entity name can produce an unenforceable judgment, which is a common and avoidable error. State business registries provide the correct name.

Filing and service

File in the correct venue, usually where the defendant resides or does business, or where the events occurred. Filing fees are modest and may be recoverable if you win.

The defendant must be formally served according to state rules, typically by sheriff, process server or certified mail. Improper service is a frequent reason cases are dismissed or delayed.

Check the statute of limitations for your claim type, which varies by state and by whether the claim is contractual or otherwise.

Preparing the case

Documentation determines outcomes. Contracts, invoices, receipts, photographs, text messages and emails, and any written communications about the dispute.

Organise chronologically and bring multiple copies — for the judge, the other party and yourself. Prepare a brief written summary of the facts in order, which helps you present clearly under time pressure.

Witnesses may attend, and in some states written declarations are accepted. Bring anyone with direct knowledge if their evidence matters.

At the hearing

Hearings are short, frequently fifteen to thirty minutes. Present facts in chronological order, refer to your documents, and state clearly what you are asking for and how the amount is calculated.

Avoid arguing with the other party or interrupting. Address the judge, answer questions directly, and stop when you have made your point. Judges in these courts hear many cases and value concision.

Dress and behave as you would for any formal proceeding.

Collecting a judgment

Winning and being paid are different things, and this is the most commonly underestimated aspect. The court awards a judgment; it does not collect it.

Enforcement mechanisms include wage garnishment, bank account levies and liens on property, each requiring further application and sometimes further fees. A judgment against someone with no assets and no income is frequently uncollectable.

Assess before filing whether the defendant can actually pay. This is the single most useful question in deciding whether the exercise is worth the effort.