Introduction
For many small business owners, the idea of taking someone to court seems scary. It's a lot of time and money to deal with legal issues, and it can be hard to know when it's worth doing so. The good news is that there are situations where going to small claims court can work out well for you, and it might help your business grow in the process. In this article, we'll discuss how small claims court works, how an attorney can help protect you from making mistakes during the process, and when it might be best to skip filing a claim altogether.
When is it worth taking someone to court?
Ultimately, it depends on the value of what you are owed. If the amount of money is small (under $1,000), it may not be worth hiring an attorney. On the other hand, if you are owed a lot of money and want to recover damages for personal injury or property damage, then taking someone to court can be an effective way to get your money back.
What is a Small Claims Court?
Small claims court is a special division of district or county court that's designed to resolve civil disputes between parties. Small claims courts are usually less formal than other courts and the proceedings are designed to be accessible to the average citizen.
There are two main types of cases that can be heard in small claims courts: contractual disputes and non-contractual disputes (such as personal injury).
What are the benefits of small claims court?
You may be able to represent yourself. While you can hire a lawyer, any individual with an interest in the case can appear for themselves in small claims court. It's relatively quick and easy to file a claim. Small claims courts are designed to handle cases quickly and efficiently, so there aren't many formalities involved in filing your case.
You don't need to hire an attorney or file lots of paperwork before you begin proceedings. And once you're ready to start your hearing, it usually won't take long; the average length for a small claims trial is 80 days, although this figure varies depending on where you live and whether or not both parties agree on an alternative dispute resolution (ADR). In general, though, these cases are resolved faster than regular civil suits that go through state or federal courts.
Do you actually have a case?
You must have a valid case to bring before the court. If you don’t, your case will be dismissed and you won’t be able to refile it. In other words, if your small claims case is thrown out because you didn’t follow state or local laws and procedures for bringing an action in small claims court, these same rules apply if you decide to bring another claim later on.
The process for filing a small claims lawsuit depends on where you live; some states have their own forms (like New York's form), while others use national forms. In general, these steps must be followed:
· You fill out all required information about yourself and the other parties involved in the dispute.
· You pay any fees required by law.
· You file everything with the clerk of court; who then assigns someone from amongst their ranks (the judge) who'll hear your case at some point during regular business hours within days of receiving your petition.
Who can file?
Anyone who is over the age of 18 and a resident of the state where you are filing can file for small claims court. In order to sue someone, you must have a valid reason to do so. This can include slander or libel, copyright infringement, other intellectual property rights violations (such as patent or trademark infringement), and violations of trade secrets or other confidential information agreements.
How do you file a claim?
To file a small claims court claim, you have to fill out and file the correct forms with the correct people. It's important to know that each state has slightly different rules for filing a small claims case. The basic requirements are the same, but there are some differences in how long you have to wait for your hearing date and how much it costs.
To get started on filing your claim, contact the clerk of court's office (or clerk of the district court) in the county or city where you want to file. They'll be able to provide information about what forms you need and how much they cost if any. In most states, there is no fee for filing a small claims action if it's between $2-$5,000 dollars worth of damages.
Is there a time limit?
The statute of limitation for a small claims court case is usually three years. The time limit is different for different types of cases and it's also different depending on the state you're in. For example, if you're suing your landlord for not fixing the heat at your apartment, then the time limit may be one year. If you're suing an auto repair shop because they overcharged you, then it would be two years. If either one of those cases were to take place in New York City (as opposed to New York State), then it would be five years instead of three years since filing deadlines are extended when dealing with consumer debt collection lawsuits against creditors or collectors who do business in multiple states or jurisdictions within a single state (but there are exceptions).
How long does it take to resolve a small claims court case?
Small claims cases tend to be resolved fairly quickly. It is not uncommon, however, for it to take a year or more before you have your day in court. If you are the plaintiff, there is a good chance that your claim will be resolved within six months of filing your initial paperwork. If you are the defendant, however, it’s likely that you will have to wait until after your case has been heard by a judge before anything happens with regard to its resolution.
What happens during the court proceeding?
The next step in the small claims process is the court proceeding, which can be as simple or complex as you make it. If your claim is for a few hundred dollars and involves little more than proving that someone owes you money, you’re probably going to be fine just showing up at the courthouse. You will fill out some paperwork and wait for your case to be called. If you do not show up or if your claim does not appear on the docket (the list of cases scheduled for trial), then your case could be dismissed without a hearing.
However, if there were complicated issues involved with your case; like whether or not someone damaged property belonging to another person, then it might be better for both parties if they hired an attorney with experience dealing with small claims court cases. However, attorneys' fees can vary wildly depending upon their level of expertise and experience working within this particular area of law practice.
Small claims court is an option, but not always your best one.
Small claims court is an option, but not always your best one. You need to think carefully about whether you have a case that can be resolved in small claims court.
If you do, it is worth considering. Your chances of winning are good and the process is relatively easy. If you don't, then small claims court probably isn't the best option for your situation.
Conclusion
Small-claims court is a great option for small businesses, but it’s not always the best one. If you have a case that will cost more than $5,000 to pursue in small claims court, you should consider whether or not it would be worth hiring an attorney instead. The other option is mediation, which can sometimes resolve disputes without going through formal legal proceedings at all and if the person(s) involved agrees to mediate with each other and work together towards a resolution, there may not be any need for litigation at all.
