Small Claims Court Brochure

WHAT IS “SMALL CLAIMS COURT”?

It is a simple way for individuals or businesses to take legal action to collect money or cancel fraudulent agreements, without hiring an attorney.

Small Claims Court handles cases under $5,000 that are less than six years old (although this time period may vary under certain circumstances).

The most common types of cases include:

• Landlord/tenant disputes
• NSF/debt collection
• Auto “Fender Benders”
• Contract or payment disputes over goods or services. Before beginning a small claims court action, you should send a letter to the person you want to sue (known as the defendant) notifying him or her of your intent to proceed in small claims court if the dispute is not resolved. The defendant may decide to pay you or settle the matter to avoid a court hearing.
• Once you decide to start a small claims action, you must continue. If you change your mind and want to drop the action, you cannot start it again later.

HOW DO I START A SMALL CLAIMS COURT ACTION?

To sue in small claims court you need to file a form called a Claim Affidavit. The Claim Affidavit is included with a packet of papers you can get from the clerk of district court for a nominal fee. Once you have the forms, fill out the “Claim Affidavit”. Be sure to include all the facts about your
claim.

WHERE DO I FILE THE COMPLAINT?

Small Claims complaints may always be filed in the county where the defendant lives or has a business. In fact, if you win it might be easier to collect your money if you have filed in that county. In certain circumstances, the defendant can get the case transferred to his or her county of residence anyway.

Also:
NSF check claims can be filed where the check was cashed.
Landlords can sue tenants in the county where the rental unit is located.
Claims on open accounts of less than $1,000 may be filed where the transaction occurred.
Political subdivisions collecting a public utility debt may file in the county where they are located.

The completed Claim Affidavit and the rest of the forms must be filed with the Clerk of District Court in the appropriate county.

You will have to pay a filing fee of $10.00 to the Clerk. After filing, the Clerk will return the forms to you so you can serve them on the defendant.
You cannot give the papers to the defendant yourself. The forms must be served by someone over 18 who has no interest in the small claims action (does not benefit if you win), or mailed to the defendant.

If you want to serve the defendant by mail, you must send the papers by certified mail, return receipt requested. Make sure you request “restricted delivery”, which requires the defendant to sign for the papers personally. If you serve the defendant by mail, you must include Form 3,
which allows the defendant to indicate whether he or she will be requesting a hearing or removing the case to district court.

After serving the papers on the defendant, you must complete the Affidavit of Service form and return it to the Clerk.

AFTER RECEIVING THE PAPERS, THE DEFENDANT MAY:

Pay immediately. If the debt is valid, the defendant may pay the debt and avoid a court hearing.
File an Answer. The defendant can file an answer listing the reasons why he or she should not have to pay, within 20 days after receiving the papers. If the defendant does not file an Answer, the Court may enter a default judgment in your favor (an automatic win).
Request a Hearing. The defendant can request a court hearing. Some courts will decide a case without a hearing but other courts require a hearing. In either case, the defendant has 20 days to request a hearing.
File a Counterclaim. In addition to filing an Answer, the defendant can file a counterclaim against the plaintiff. The counterclaim must be for less than $5,000 and must be notarized. The defendant must serve the counterclaim on the plaintiff at least 48 hours before the hearing. The judge will hear both claims before making a decision.
Change Courts. The defendant can ask to move the case to District Court. The Court will decide whether to allow the case to be moved. If the defendant’s request is granted and the case transferred to District Court, you may want an attorney to help you. In order to make the request, the defendant must complete Form 3, pay an $80.00 filing fee, and notify the plaintiff of this request at least 48 hours before the hearing date. You can settle your case with the defendant at any time before the hearing is held. If you do, be sure to tell the court as soon as possible.

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THE SMALL CLAIMS COURT HEARING AND RULING.

Some Courts will decide the case without a hearing. If there is a hearing scheduled, be sure to go to the hearing.

Often, people lose their small claims case because they are not ready. There are no guarantees, but for the best chance of winning, be sure to:

Prepare for the hearing – be ready to prove your side of the case.
Bring copies of documents (receipts, agreements, bills, etc.).
Bring witnesses.
Make a list of points you want to cover.

If either of you fails to show up at a scheduled hearing, that person runs the risk of losing the case or having the claim dismissed. If you can't make your hearing, let the court know as soon as possible so a new date can be set.

A judgment (decision) will be entered even if no one shows up for the hearing. The hearing is short and informal. There is no jury or court reporter. The judge asks questions. You can, too. The judge might even ask questions before or after the hearing.

The judge makes his or her judgment. This can happen right away or sometimes it takes longer (the decision will be mailed to you).

The judge is allowed to ask the person who owes the money (judgment debtor) how he or she will pay the debt, and may even ask about the debtor’s property. This is to determine if the debtor can pay the debt. The debtor may also have to pay the costs of the other party.

A Small Claims judgment is final - it cannot be appealed.

Lastly, the judge may say the case is too complicated for Small Claims Court, and dismiss the case “without prejudice.” That means the case must be brought in District Court.

IF A JUDGMENT IS ENTERED IN MY FAVOR, HOW DO I COLLECT THE MONEY OWED?

The debtor has 20 days from the time he or she receives notice of the judgment to pay you. If you do not get your money, you may need to take action to enforce the judgment.

A judgment of the Small Claims Court has the same force and effect as a judgment of the District Court. A judgment is good for 10 years and may be renewed for another 10 years. It automatically becomes a lien on all real estate owned by the person in the county where judgment is entered.

You may need to use legal collection methods, such as an execution of judgment or garnishment to collect from the debtor. These procedures are set out in state law but because they can be complicated, you may wish to contact a private attorney for assistance in collecting your judgment.

After the debtor pays the judgment, you will have to fill out a form called “Satisfaction of Claim” and return it to the Clerk of Court. You must have your signature notarized.

Sometimes, it is very hard to get your money. If the person who owes you money is poor, he or she may be what is called “judgment proof.” The person may not have any assets other than those exempt from collection efforts. You may want to talk to a private attorney who can advise you of your options.

Before filing a small claims claim – consider that:

A small claims court judgment cannot be appealed.
If the defendant files a counterclaim and wins, you may have to pay more than the amount of money you were trying to get from the defendant.
The defendant can ask to have the case transferred to district court, but you cannot. Judgments in district court can be appealed.
Even if you win, you may not get your money from the defendant if he or she is “judgment proof”.

Disclaimer: This information is not legal advice. If you have a legal problem, you should talk to a lawyer and ask for advice about your options.