Small-claims court is a city or state court that handles minor lawsuits involving claims ranging up to $5,000. Small-claims courts aim to solve such cases speedily, efficiently, and cheaply.
Small-claims lawsuits intend to help citizens who want to collect small debts or claim damages for what they consider faulty products or poorly performed services. Actually, however, most small-claims lawsuits involve a business or public utility that wants to collect payment from customers for unpaid bills.
Small-claims courts handle their cases without many of the costly and formal procedures of other courts. For example, individuals can plead their own case without hiring a lawyer. The court also conducts its proceedings in everyday language and avoids technical legal terms. Most small-claims courts do not provide the right to a trial by jury nor the right to appeal the ruling.
A small-claims lawsuit begins when the plaintiff files a complaint. The court then orders the defendant to appear in court to respond. The plaintiff and the defendant each briefly argue their side of the case. Then the judge or an appointee of the court issues a ruling.
The first small-claims court was established in 1913 in Cleveland. By 1916, small-claims courts had become a part of the court system of many states. Every state has a small-claims court or a court that handles small claims.
