What Can You Sue for In Small Claims Court?
Over 150,000 small claims were filed in California during 2017.
What can you sue for in small claims court anyway?
If you want to resolve a dispute quickly and inexpensively, you may be able to do so in small claims court.
Small claims court handles a variety of smaller disputes with limited monetary jurisdiction. California allows an individual to collect up to $7,500 but limits corporations and limited liability companies to $5,000.
So, what can you sue for in small claims court anyway?
Today, we’re taking a closer look at the three most common reasons people go to small claims court.
What Can You Sue for In Small Claims Court?
You can go to small claims court for a variety of reasons.
Some of the most common types of claims involve failure to return a security deposit, repair property properly, repay a loan, or meet the terms of a service contract. If the dispute involves money, you can usually file in small claims based on a legal theory allowed in other courts.
Related: How to File A Claim in Small Claims Court
There are also a few types of disputes you cannot resolve in small claims court. Small claims court does not handle small claims involving divorce, guardianship, or bankruptcy.
Let’s take a closer look at three of the most common reasons people go to small claims court.
1. Failure to Repay A Loan
When a borrower fails to repay a loan or other debt, the lender will usually attempt to collect the amount owed during a process called “collections.” If the lender isn’t able to collect the money owed, he or she may file a collection action in small claims court and pursue a levy or garnishment of wages.
In order to win such a case, the plaintiff must prove that there was indeed a contract, that the plaintiff performed his or her responsibilities, and that the defendant did not.
Related: How to Sue Someone Who Owes You Money
A written contract forms a stronger case. If you are the plaintiff, you can use evidence like photographs or copies of work you did, a delivery receipt, a financial statement, or copies of invoices.
Be prepared to support this documentary evidence with oral testimony to the effect that you met your responsibilities and held up your end of the bargain in accordance with the contract.
Before going to small claims court to collect a debt, you should first attempt to collect it through face-to-face discussion or demand letters. If that fails, you should also consider whether you are certain the other party can afford to pay you and that you are confident you can collect.
2. Breach of Contract
Unlike collections issues that are basically one-sided, contract issues revolve around disputes over who breached a contract agreement. The plaintiff and defendant disagree on whether there was a breach and who may have been responsible.
A contract is basically a legal exchange of promises, an agreement, between parties to deliver goods, services, money, or other considerations. The contract can be written or oral – or it can be implied in different ways.
Typically, there has to be some kind of value brought to the contract by both parties. If someone promises you something but does not deliver, and it cost you nothing, then it is not a contract. The legal concept of consideration requires something of value to be given by both parties, with the exception of a quasi-contract.
Related: How to Sue A Contractor for Bad Work
A quasi-contract is an implied contract where the court is asked to remedy a situation where one party would be unjustly enriched if that party was not required to compensate the other party.
If a furniture company, for example, were to deliver a sofa to the wrong house and the homeowner recognized the mistake but kept the sofa without informing anyone, and then received a bill for the sofa, she would be liable for the payment.
An implied contract is one in which not all terms are expressed in words. If you visit a doctor or dentist, you agree to pay a fair price for the service rendered. Even if you have not agreed to pay a certain amount of money, if you fail to do so, you can be in breach of an implied contract. If you put money down on a purchase, the implication is that you will pay the rest of the amount owed.
Failure to pay a loan, which is a form of contract, is a breach of that contract. The plaintiff must prove that there was a contract (usually written) or loan documents, that the loan was delivered to the defendant, and that partial payments were made on the loan.
If you are the defendant, you should make sure you have been credited with all the payments you made on the debt.
Similar to a breach of contract is a breach of warranty. This occurs when a written or implied warranty (assurance) extended to you by a merchant has been breached and, as a result, you have suffered a monetary loss. For example, you bought a new or used car that had mechanical problems while still covered by warranty and the vendor refused to correct them.
3. Landlord-Tenant Disputes
Landlord-tenant disputes arise mostly over lease agreements, damage to a rental unit, back rent, or a dispute over rental security deposits. Lease-tenant disputes are not always heard in small claims court because, for example, eviction is the termination of a valuable right – the right to possess real property.
Related: 10 Reasons to Sue Your Landlord for Negligence
Security deposit cases are often heard – if the amount in dispute is less than the jurisdiction limit for the state. In these cases, tenants usually have the advantage because the security deposit belongs to the tenant and is only held in trust by the landlord. It can be retained only in very specific situations.
Judges tend to favor tenants more often because they tend to be less well off than landlords who often take advantage of them. Tenants may get damages beyond the security amounts due to state statutes protecting them. For example, Massachusetts can award triple damages and attorney fees.
Other Typical Disputes
There are many other disputes that can be brought to small claims court. If the actions of someone else causes a health or safety hazard for you or interferes with your ability to use and enjoy your property (e.g. excessive noise or bright lighting), you can make a nuisance claim.
If you were injured by the negligence or intentional behavior of another person, you can sue for personal injury. If that injury occurred by a defective product, you can sue under the legal doctrine of strict liability.
If you are injured by a medical professional because of failure to use the ordinary skills of that profession, you may be able to sue for malpractice. If you suffer a monetary loss from the inadequate or improper practice of a lawyer or accountant, you may also have a case of malpractice.
In small claims court, you may or may not be required to have an attorney. Many courts want you to defend yourself. However, since there are specific rules and restrictions in place, it is always good to have the advice of counsel in advance.
Conclusion
We hope this article helped answer the question, “what can you sue for in small claims court?”
If you find yourself involved in a minor dispute, you may be able to resolve the matter in small claims court. Small claims court may be designed to simplify the legal process, but it’s in your best interest to do your research so you can present a solid case to the judge.
For legal matters involving more complex disputes or disputes involving divorce, guardianship, and other matters small claims court will not handle, we may be able to help you find a lawyer for your needs.
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