California Small Claims Court: Is It Right For Your Case?

There are lots of very complicated lawsuits out there. Big corporate suits, for example, can involve tens of thousands of pages of documents, dozens of lawyers, and countless man-hours and may take years to resolve. Fortunately, most of us never face legal problems that complex. We may, however, have to deal with smaller legal issues like property damage, minor injury claims, or broken contracts. For those kinds of problems, it may not make sense to go through the time and expense of the usual civil lawsuit process. That’s why we have the California Small Claims Court. But is it right for your case?

Filing in the California Small Claims Court can be somewhat complicated. You may be able to get help from a small claims advisor in your area to deal with the paperwork, which can make the process easier. If your case is complex, however, it may be tough to manage even with that help. The small claims process is usually faster than a traditional civil lawsuit and costs less money, but only certain cases qualify and appeals are final – you can’t appeal again and go to a higher court. So, small claims may make sense if:

• you qualify to file in that court
• your case is relatively simple
• you’re comfortable handling the paperwork and logistics on your own
• you’re comfortable explaining your claim in the hearing
• you’ve tried to come to an agreement out of court but haven’t been able to

If that’s not the case, you’re probably better off finding a local attorney to help you make your claim. Lawyers go through these kinds of cases all the time, so they’re experts at managing the paperwork. They also know the ins and outs of the law and may be able to make better legal arguments to support your case. Essentially, they’ll do all of the legwork and may be able to get a better outcome in a complex case.

If you’re deciding between small claims and hiring an attorney for a civil case, here’s what you need to know:

California Small Claims Court Eligibility

The small claims court is devoted to just that – small, relatively simple legal matters that don’t require all the resources of a larger lawsuit. There are really only three major players in the process – you, the other party to the claim, and the judge. The person that files the lawsuit is called the plaintiff and the other party is the defendant. You can’t bring a lawyer to the proceedings, although you are allowed to consult with one before or after.

The rules in California Small Claims Court are much less formal than those in civil court; you don’t have to deal with the very strict procedures involved in other types of court cases.

Small Claims Court Requirements

Because it’s intended to offer an efficient, streamlined legal process, the California Small Claims Court has certain eligibility requirements. First, individuals that want to sue in this court must be at least 18; emancipated minors are also eligible. Corporations and other entities may also use this court but collections agencies cannot.

Secondly, you can only sue for a certain amount – generally up to $10,000 for individuals and $5,000 for corporations or other entities. You can only file up to 2 claims for more than $2,500 in a calendar year. If you file a third (or subsequent) claim for more than that, you’ll only be able to claim up to $2,500 in damages no matter how much you actually win.

If you’re suing a “guarantor,” the rules are slightly different. A guarantor is a party that takes legal responsibility for another person or entity; it usually comes up in the context of guaranteeing a debt. If you’re suing a guarantor that did not charge a fee for the guarantee, you can only claim up to $2,500. If you’re an individual suing a guarantor that did charge a fee, you can claim up to $6,500. And if you’re an entity (like a corporation) suing a guarantor that charged a fee, you can claim up to $4,000.

If you meet all of these requirements, you have the option to file in this court. Check out our guide to filing a small claim for more details about the process!

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