Small Claims Court Basics

Dollar limits. Small claims courts serve to resolve disputes over comparatively small dollar amounts with dollar limits ranging from $1,500 (Kentucky) and $2,000 (Massachusetts) to $10,000 (Alaska and New Mexico) and $15,000 (Delaware, Georgia, and Tennessee). A chart listing the small claims court limits for each state may be found at Nolo.com.

Statutes of limitations. Statutes of limitations are laws that set the deadline or maximum period of time within which a lawsuit or claim may be filed. The deadlines vary depending on the circumstances of the case, and the type of case or claim. The periods of time also vary from state-to-state. If a lawsuit or claim is not filed before the statutory deadline, the right to sue or file a lawsuit or claim is barred. Under certain circumstances, a statute of limitations will be extended beyond its deadline. Statutes of limitations apply to actions filed in small claims court as well as other courts.

For a detailed discussion, see Statute of Limitations Basics at AllBusiness.com.

Types of disputes. The types of disputes and claims typically brought in small claims court include:

• Failure to repay a loan;
• Failure to provide personal service;
• Failure to pay for personal services;
• Failure to fix a car or other major appliance properly;
• Landlord/Tenant disputes (i.e., failure to return security deposit, destruction of rental property);
• Debt collection;
• Return of personal property;
• Claims for equitable relief; and
• Breach of warranty (claim that an item purchased does not work the way it is supposed to work).

Some types of claims may not be filed in small claims court:

• Divorce proceedings;
• Bankruptcy proceedings;
• Guardianship proceedings;
• Suits against the federal government, a federal agency, or a federal employee; and
• Criminal proceedings.

Attempt to settle prior to filing. Before you sue in small claims court, you should make one more demand on the other party for payment, return of property, or whatever else you plan to ask the judge to make that party. It is a good idea to make this demand in writing because you may be required to demonstrate to the judge that you made an attempt to settle the dispute before filing your claim in small claims court.

Where to file. A small claims court action must generally be filed in the county in which the party being sued resides or does business. It may also be filed where a contract was signed or where a personal injury occurred.