What is Small Claims Court Mediation?
Some small claims cases mandate a mediated resolution of disputes whenever possible. Mediation in small claims courts enables courts to resolve disputes without time-consuming litigation and high costs. It also benefits plaintiffs and defendants, saving them from spending too much time and money as well as giving them the ability to come to a mutually agreed upon result rather than having a resolution imposed by the court. Small claims mediations can be especially useful if your dispute is with someone who you want to keep positive ongoing relations with, such as a friend, neighbor, partner or customer. Additionally, because small claims mediation is often free or low-cost, it is a viable method for resolving disputes more amicably. What is Mediation? Mediation is a conflict resolution process that is party driven and is aimed at reaching a solution to a dispute that is mutually agreeable. The process is voluntary in most cases (unless mandated by a court) and the parties communicate with each other directly, while a mediator serves as a referee to ensure that each party stays on course to reach a desired resolution. The results of mediation must be mutually agreed upon by both parties. Mediation is often preferred because both parties are able to control the outcome. During the process, any underlying issues between both parties are brought into the forefront so the dispute at hand can be resolved. An experienced mediator can help to draw this information out, helping each party to better reach a settlement. Mediation is not for everyone and it may not be suitable for your situation. If you just want 100% of what you are asking for and are unwilling to settle for a penny less, no matter the reason, or if you want to see the other party suffer in a courtroom and before a judge, then mediation is likely a waste of time for you and you should pursue a small claims court case instead. Carefully consider your plans and goals before taking the steps to...
Read More3 More Mistakes to Avoid in Small Claims Court
We have previously discussed some mistakes to avoid when going to small claims court, but there are more than the three we shared previously. Because we want you to do everything you can to make your case a success, here are three more mistakes you should avoid that could cost you on the day of your hearing. Failing to Consider Alternatives Beforehand Many people run straight to court before considering other options, such as resolving the problem directly, either by mediation or talking to your opponent directly. Consider all of your options prior to going to court. Court cases should be reserved for a last resort for disputes. Revenge is not a good litigation strategy. It could cost you too. Making Poor Monetary Decisions It is easy to focus more on the amount of money owed to you rather than how you get the money. It is imperative that you gain understanding of the process and prepare your case carefully and wisely. You have to remember to make a clear case with proof. Don’t assume the judge knows the details of your case or how much money you are owed just because he has heard thousands of similar cases. You need to state your case clearly. Don’t just focus on how much but how to present your case. Having a Bad Attitude Your attitude in court is important. If you walk into your hearing with a confrontational attitude or have a chip on your shoulder when talking to the clerk, the judge or any other personnel, it will not do you much good and can actually kill your credibility for your case. It is okay to be upset. If you are in court, you likely already are and have good reason to be. But keep from losing your head in court because it will not help you to win. Try to remain calm and focus on the facts. As Teddy Roosevelt once said, “speak softly and carry a big...
Read MoreIs it Possible to Sue for Negligence Resulting in Personal Injury in Small Claims Court?
When it comes to negligence, most people who are on the receiving end (or technically, it is better defined as the not-receiving end) hope for some sort of compensation for their losses. If you are considering a case for personal injury, below are the answers to the question, “Is it possible to sue for negligence resulting in personal injury in small claims court?” In most cases, personal injury cases are not heard in small claims court because small claims pertains to money damages. You may be able to recover moneys for what is termed “conscious pain and suffering,” depending on how much injury or damage you experienced. If you suffered a significant amount of injury as well as lost wages and had to pay medical expenses, you may have a case. It can be difficult to establish pain and suffering than it is to establish another type of “money” claim. You must produce medical testimony and records as well as documentation of some sort, showing how much suffering you underwent as a result of the negligence of the defendant. If you experienced auto damages, you can perhaps more easily sue for property damages to your vehicle. You may also be able to sue in small claims for a loss of funds due to medical expenses that had to be paid as a result of the defendant’s negligence or loss of time at work – if you have documentation. Can I sue for loss of enjoyment in life in small claims court? Another claim often addressed when it comes to negligence is “loss of enjoyment in life.” Keep in mind that it is more likely that you will be able to sue in small claims court for medical expenses, lost wages or other out-of-pocket expenses (with proper documentation) than it is for you to sue for loss of enjoyment in life. Civil complaints for money are separate than those of physical or mental pain and...
Read MoreWhen is a Lawyer Necessary for Small Claims Court?
When faced with a small claims case, it is usually best to determine up front whether you need to hire a lawyer rather than waiting until you are in the middle of a case. Getting another person to sort out the mess after it has already been made and catching them up to speed can be difficult (but of course not impossible). When the Defendant Has a Lawyer and You Don’t If the person you are suing has a lawyer and you do not, you may think at first thought that you also need to hire a lawyer. You don’t want the defendant to have an unfair advantage, do you? Thankfully, if you begin a small claims case without an attorney and the opposing party has one, the court often gives the right to the other side to have an attorney if they want one. Keep in mind that if you choose to delay getting a lawyer, you run the risk of the judge denying your request, saying you had ample time to get an attorney before. The court can then give you options, such as moving forward without a lawyer, discontinuing without prejudice (meaning you can bring the case back again) or discontinuing with prejudice (meaning you cannot bring the case again). Businesses in Small Claims Court If you sue a business or corporation, it is wise to hire a lawyer because business entities are legal entities, meaning they have a lawyer present in all court matters. You may also be up against more than just one lawyer but a team of lawyers if you sue a corporation. If you are the head of, or representative of a corporation or similar entity, check specific rules of small claims court in your state to determine whether you need attorney representation. Even if you don’t use one for the courtroom, talking to one can help. Lawyers can help guide you to find the name of your...
Read MoreFiling and Presenting Your Small Claims Appeal
If your small claims ruling was not in your favor and you feel the judgement was wrong, you can file a small claims appeal. Below are some tips on how to file and present your appeal. It is important to know that the rules that cover small claims appeals may vary from state to state. Because of this, the first thing you should do is obtain a copy of your state’s small claims appeal rules and familiarize yourself with them. File Promptly All states require appeals to be filed promptly, typically within 10 to 30 days. In some states, you need to file a notice of appeal within 30 days after the judgement has been mailed to you by the court clerk. This means that if the decision was mailed to you, you have less than 30 days to file once you have received the documents. Fees Appeal fees are often higher than the initial filing fee. You may be required to post a cash bond in your state to cover the amount of the judgement, should you lose. Do You Need a Lawyer? You are entitled to have a lawyer represent you in the appeals court, but it may not be cost efficient to hire one considering how much you already have to pay to appeal. Weigh the pros and cons and know that you do not need a lawyer to make a good impression at an appeal. Simply be prepared and respectful and you can make just as impressive a showing at your appeal. Presenting Your Appeal Give careful thought to any improvement your presentation can benefit from. This is sage advice for both sides of the judgement but especially true to the person who lost previously. Ask yourself if the judge decided against you because you presented poorly or perhaps because your statements were not backed up with evidence. If the answer to either is yes, you may need to do a little more work. If you are feeling the pre-case jitters, try to calm yourself and be prepared. You may want to read Represent Yourself in Court: How to Prepare & Try a Winning Case by Paul Bergman. And know that if you do not understand something during the appeal process, you are allowed to politely ask the judge for an...
Read MoreHow Small Claims Court Judgments Affect Your Credit
Some of the things that are included in your credit report are small claims court judgments against you. Information on civil judgments can be collected by credit bureaus and may have significant negative effects on your credit report. The judgments may remain on your credit report for up to seven years after the judgment and not the date of the debt. Public Information Courts are not generally required to report small claims judgments to credit bureaus. However, civil judgments are considered public documents that can be accessed by individuals or organizations. Credit bureaus usually assemble data on small claims on their own. Unfortunately, debtors must update their records to prove that their debts were paid. Although a paid judgment still has negative effects on your credit report, it is much better than an unpaid one. Credit Report Damage Small claims judgments have multiple negative effects on credit reports. Civil judgments can have some of the worst negative effects on your credit file. In addition, the effects of a civil judgment can be more damaging if the lawsuit and judgment were the results of a delinquent credit account. If the debtor does not appear at trial date, the court would enter a default judgment on the debtor’s records. Default judgments have the worst negative effects on your credit because they give the impression that you did not even bother to attend a trial. Statute of Limitations Statutes of limitations play important roles in small claims actions, or even the avoidance of such claims. Unfortunately, statutes of limitations can be quite long ranging from 12 to 20 years. In some cases, the SOL can even be renewed restarting the clock all over again. It is important to research the statute of limitations for your state, especially when sued for an old debt. If your suit is initiated after the expiry date, you can inform the court and have the case...
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