What to Do If You Are Sued in Small Claims Court
When you think of the court system and litigation, you may think of huge , big-money lawsuits that go on for years, or the flashy legal puzzles played out on your favorite lawyer-themed TV show. But the millions of lawsuits each year don’t reach such dramatic heights—they’re filed in small claims court , where monetary damages are small and you don’t even necessarily need a lawyer.
It is possible that you will find yourself in small claims court someday. If a contractor thinks you owe him money, or a neighbor claims something you did caused him harm, it’s pretty easy for him to pay a small amount—often less than $100—and drag you to court. If this happens, you should take it seriously; When you think of small claims court, it may be tempting to think of something like Judge Judy , but the consequences of not taking it seriously are very real. If you’re facing a small claims lawsuit, here’s what you need to do.
Negotiate or mediate
Your first step is to try to avoid getting into trouble. If there is a misunderstanding or you think there is room for negotiation, there is no reason not to contact the person suing you and try to work things out between you. There is no prohibition against trying to settle the situation before the trial date.
If that doesn’t work, you can suggest mediation , which involves bringing in a trained and objective third party to try to reach a settlement. Again, there is no rule against this – in fact, many small claims courts require this step before you appear in court, and many that don’t offer assistance in finding and engaging a mediator, so it’s worth contacting the court clerk for small claims. .
Show up
If you are unable to negotiate directly, you should prepare to appear in court. Even if you don’t care about losing, you shouldn’t ignore your court date. Even if you have to postpone your hearing for any reason, you will need to appear in court and ask for the postponement. The basic rule is that, unless the judge specifically tells you otherwise, you must appear in court.
If this is not done, there are two unpleasant consequences:
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Default. If you fail to appear in small claims court, the most likely outcome is that the judge will almost certainly rule in favor of the plaintiff by default and will almost certainly give him everything he asked for. Any chance that you would have to reduce judgment by making your point known is gone.
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Loss of appeal. You can appeal a small claims judgment the same way you appeal any judgment , unless you fail to appear and a default judgment is entered. Maintaining the right to appeal may not seem like a big deal if you’re fighting for a small amount of money, but why give up leverage?
Refusing any opportunity to influence the outcome in your favor is just your own business.
Be ready
Once you’ve made plans to attend your court hearing, it’s time to prepare . Sure, these are “small” claims, but that doesn’t mean they can’t cost you—the cost of these claims varies from state to state , with Kentucky on the low end ($2,500 maximum) and Delaware and Tennessee on the high end. end ($25,000). Good for you if losing $25,000 by default isn’t a big deal, but for most people the ability to at least reduce the amount is worth some effort.
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Seek advice. You do not need an attorney in small claims court (and in many jurisdictions, an attorney cannot represent you in small claims court), but you should review any documents sent to you to make sure you understand what you are representing. what the claim is for and what the plaintiff wants. If you don’t understand, there is no rule against hiring an attorney to advise you.
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Collect evidence. If the plaintiff gives incorrect facts, bring documents confirming this. If you challenge mitigating factors, be prepared to explain to the judge why you think the amount sought is too high or why you are not the right person to be held responsible. You will be speaking directly to the judge, so be prepared to speak clearly and concisely. If you have witnesses—and yes, you can subpoena witnesses in small claims court—make sure they arrive on time or provide a signed written statement that you can file.
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Pay attention. Finally, pay attention and do what the judge tells you. Most small claims judges understand that you may not be familiar with this procedure; if you are respectful and make an effort, they will tell you what to do.