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Small-claims courts aren't just for battles over rent deposits or out-of-focus wedding photos anymore. They can be a good tool
for collecting on any bad debt, as long as you keep your expectations realistic and know how to use the system.
This is one legal venue created expressly for the do-it-yourselfer. (Most states actually limit the role of attorneys.) Suits
usually are initiated simply by filing a standard form in court and serving the defendant via registered mail. It has never been brain surgery, but
in recent years, pressing a small claim has become even simpler. Most states have streamlined procedures, while raising the amount you can recover
to $3,000 to $5,000.
Simple or not, a small-claims case is still a lawsuit. And the best way to win one is to be prepared.
Before you go to court:
— Create a paper trail. Contact the other side in writing and attempt to resolve the dispute before filing suit. Then bring
these letters to court. According to James Turner, director of HALT, a Washington-based legal reform group, this tells the judge that you've been
fair to your opponent about trying to work things out.
— Read your state's court rules before you file. Since small-claims court is designed to be user-friendly, the court clerk or
staff attorney should be able to supply them. Some key things to keep in mind, according to Ralph Warner, author of Everybody's Guide to Small
Claims' Court (Nolo Press): Are your damages within the jurisdictional limit? Is the time frame within the statute of limitations for these
actions? If your business is a corporation, are you required to be represented by an attorney? Then ask yourself: Can you prove your case and are
you likely to collect?
— Prepare your evidence. It sounds obvious, but don't litigate a contract dispute without a copy of the contract or some
written evidence of the contract terms and proof of the damages you're seeking. For property damage cases, bring in bills, repair estimates, and
before-and-after photos, notes Warner. While it can be helpful to have witnesses testify, most courts will accept written statements instead.
— Sit in on a court session. If you can observe the judge who's going to hear your case, so much the better, says Judge John R.
Smiley of California Municipal Court in Ventura County. "This will give you an idea of how the courtroom functions and make you feel more at ease."
Pay attention to the questions the judge asks and how litigants respond. You should be able to answer any questions that come up.
At trial:
— Get to the point. First introduce yourself. Then tell the judge what action you want him to take, says Smiley — as in "I
want the other side to pay me $2,000." The next step is just to tell the judge why this is appropriate: "I had a contract with this person, and he
failed to live up to his obligations." Don't filibuster. "In most courts, the judge will take over and start asking questions within the first 30
seconds of your presentation," says Warner.
— Don't lose it. This is not the place to get emotional or indulge in a grudge match. Judges are there to decide facts, and if
you're not on board, you're going to be seen as part of the problem.
— Don't be surprised if the other side doesn't show. "Every small-claims court does a huge business in default judgments," says
Smiley. If you're awarded a default judgment, you will have to wait a certain amount of time before you can collect. This gives the other side time
to learn about the judgment and go to court to have it set aside, notes Warner.
After the case is over:
— Keep copies of checks. If the other side pays by check and the check bounces, you'll have proof of nonpayment. Then you can
sue in small-claims court for the amount of the check plus damages, says Warner. Your district attorney may choose to prosecute as well.
— Read the collection rules for your jurisdiction. And follow them to the letter. Getting carried away and harassing a debtor
will put you on the other end of a lawsuit, warns Warner.
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