Big Headaches? Try...Small Claims

Last month, I consulted two people about their Small Claims matters. Small Claims is a great way for people to go to court for everyday problems (like unpaid bills) without having to hire an attorney or even know a great deal about the law. So, I thought this would be a good opportunity to blog about Small Claims court.

Small Claims is a way for people to bring their case to court in front of a real life judge. You are not allowed to have a lawyer represent you in Small Claims court (but you are allowed to consult a lawyer outside of court about strategies, whether you have a case, your chances of collecting, etc.) This could be good for you because you are not going up against another lawyer in Small Claims court (unless in the rare situation where you are taking a lawyer to court for unpaid bills or some other small claims matter). 

So what can you use Small Claims for?

A case where it is not economically feasible to hire a lawyer. One person I talked to had all the facts in her favor, but the amount of money she was looking for simply does not make economic sense to hire an attorney. Other examples include: if someone owes you money (like an unpaid bill), if you bought a product and it doesn't work and the person you bought it from refuse to give you back your money, if you signed a contract with someone to perform some service and they didn't do it and they refuse to give you back your money.

Some things to consider...

• Make sure you qualify for Small Claims based on the amount you are claiming. 
• If you are the one initiating the Small Claims suit (you are the Plaintiff), know that you are foregoing your right to take this to superior court later on if you lose in Small Claims (in general, you cannot appeal if you don't like the outcome of your Small Claims).
• On the flip side, if you are the defending party (the Defendant), you do have a right to appeal. If you appeal, you will be taking your case to superior court, where you can have a lawyer represent you if you wish (the other side can do the same as well). 
• Venue: Figure out which court or county to file your claim first. Venue is based on different factors. If you filed in the wrong court, your case may be dismissed, unless all the defendants showed up and agreed that the court can hear the case. 
• Make a "demand" first. One of the requirements of Small Claims is that you have to make a demand first, and the other side has to refuse to your demand. This can be as simple as a phone call to the other side, and them saying no. 
• Write a brief summary. While you don't have to write legal laws and motion, you do have to write a summary of what happened. You have limited space on your Small Claims application, so be concise in what you write and make sure you put all your strongest points across. 
• Winning does not mean "Money In Your Pocket". There is a difference between winning your Small Claims case and getting the actual payment (AKA, cash). So, unfortunately, even if the judge rules in your favor, that doesn't mean you are getting the cash from the other side right away. The court will not collect for you nor will they act as a collection agency. Collections can be complicated (time consuming and maybe costly) and is a whole other separate discussion. Also, you cannot collect any money or take any action on your judgment until the time for appeal ends or until the appeal is decided, so that you may be waiting a long time for your money. 

Finally, think about how much it will cost overall before you go to Small Claims. When you tally everything up, you might consider that it is not worth the stress and headache to go to Small Claims for, lets say, $150. Consider these:

• Filing Fee
• Fees range between $30-$100 for Ventura County just to file
• Service on Defendant
• There is a $10 fee to serve EACH defendant if you choose to do mail service. If you are suing multiple defendants, you will pay for each additional service. 
• You can also use a law officer or a process server, but these options will also incur a fee.
• Collecting judgement: Any fees associated with collecting the judgment
• Taking time off work & driving to court: You will be going to court, so you will have to take time off from work or school. You will also have to drive to the proper venue for your case. 

But, I don't want to be discouraging. If you feel that you are owed a good amount of money, and you cannot afford an attorney or don't feel that it is worth the claim amount to pay for an attorney, then Small Claims may be a great avenue for you.

The information above is based on Small Claims Court of Ventura County, CA. The rules in your specific county and state may be different. Always consult an attorney in your area if you are unsure of the local rules.