How Does Small Claims Court Work?
Small claims court resolves disputes up to a state-set dollar limit quickly and cheaply, usually without lawyers. You file a claim form in the right court, pay a fee, have the defendant served, and present your evidence at a short hearing before a judge or magistrate, who often decides that day or by mail. Limits vary from a few thousand dollars to over $20,000 depending on the state.
Small claims court is designed for people to handle their own cases (Cornell LII). Common cases include unpaid bills, security deposits, property damage, defective goods and services, and small contract disputes.
Dollar limits
Each state sets a maximum, and some set different limits for businesses or for certain types of claims. Find your state's limit under state laws. If your claim exceeds the limit, you can sue in regular court or reduce your claim to fit, giving up the excess.
Step 1: Make sure you have a claim
You need a legal basis (contract, damage, unpaid money), proof of the amount, and a defendant you can identify and serve. Send a demand letter first; some courts require it.
Step 2: File in the right court
Usually where the defendant lives or does business, or where the events happened. Fill out the claim form, naming the defendant correctly, especially businesses (use their legal name). Pay the filing fee or request a waiver.
Step 3: Serve the defendant
The defendant must receive formal notice (Cornell LII), by certified mail, sheriff, process server, or another method your court allows. You typically cannot serve the papers yourself.
Step 4: Prepare your case
- Contracts, receipts, invoices, estimates
- Photos and videos
- Texts and emails
- Witnesses or written statements
- A short timeline
- Copies for the judge and the defendant
Our small claims court checklist lists what to bring.
Step 5: The hearing
Hearings are short and informal. Each side explains its case and shows evidence. Be concise, stick to facts and focus on the amount owed. Some courts offer mediation the same day.
Step 6: The judgment
The judge decides at the hearing or later by mail. If you win, the defendant is ordered to pay; collecting is a separate step. See how to collect a small claims judgment.
Appeals
Appeal rights vary. In some states only the defendant can appeal, sometimes with a new trial in a higher court.
Do you need a lawyer?
Usually not, and some states do not allow lawyers to appear in small claims. Business owners may need to send an officer or employee with authority.
For larger or complex disputes, consult a business lawyer. See also how to sue a company.
Sources
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This article is general legal information, not legal advice, and reading it does not create an attorney-client relationship. Laws differ by state and change over time; talk to a licensed attorney in your state about your situation.