Define: Small Claims Court

Small claims court is a specialised judicial forum designed to resolve disputes involving relatively minor financial matters in an efficient and accessible manner. Typically, small claims courts handle cases where the disputed amount falls below a certain threshold, which varies by jurisdiction. Parties involved in small claims cases often represent themselves without the need for attorneys, and procedures are simplified compared to traditional court proceedings. The goal of small claims court is to provide a cost-effective and informal process for resolving disputes, usually through mediation, negotiation, or a simplified trial before a judge. Decisions made in small claims court are legally binding, but they may be subject to appeal in certain circumstances. Overall, small claims court serves as a practical option for individuals and small businesses seeking to resolve disputes quickly and without the complexities of traditional litigation.

A state court that resolves disputes involving relatively small amounts of money — usually between $2,000 and $10,000, depending on the state. Adversaries usually appear without lawyers — in fact, some states forbid lawyers in small claims court – and recount their side of the dispute in plain English. Evidence, including the testimony of eyewitnesses and expert witnesses, is relatively easy to present because small claims courts do not follow the formal rules of evidence that govern regular trial cases. A small claims judgement has the same force as does the judgement of any other state court, meaning that if the loser – now called the “judgement debtor” – fails to pay the judgement voluntarily, it can be collected using normal collection techniques, such as property liens and wage garnishments.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March, 2024.