Legal disputes can arise in many aspects of life, whether it’s a disagreement over money, property damage, or business transactions gone wrong. When facing such conflicts, individuals and businesses often find themselves at a crossroads: should they pursue their case in small claims court or opt for a regular lawsuit?
The decision has significant implications for time, cost, legal representation, and the complexity of the process. However, this means plenty of misconceptions about filing a lawsuit for a layperson. But not to worry.
This guide explores the key differences between small claims court and regular lawsuits, outlining when each is the better option. By understanding the nuances of claims court, the court rules, court fees, and how the court decides cases, you can make an informed choice that best suits your situation.
Understanding Small Claims Court
What Is Small Claims Court?
Small claims court is a specialized branch of the civil court system designed to handle relatively minor disputes in an efficient and cost-effective manner. The court rules are simplified, and the process is much more accessible to the general public.
Unlike regular lawsuits, small claims court cases are often decided quicker, making it an attractive option for individuals seeking swift justice.
In small claims court:
- Cases involve relatively small amounts of money.
- Proceedings are informal, and the formal rules of evidence do not apply.
- Parties typically represent themselves (pro se), as legal representation is not allowed in most cases.
- The judge decides the case without a jury trial.
- Decisions are typically final and cannot be appealed in most jurisdictions.
If you are looking for a cost-effective way to sue someone for a relatively minor dispute, small claims court may be your best option.
Types of Cases Heard in Small Claims Court
Small claims court is generally used for cases involving money or personal property, as long as the amount in dispute does not exceed the maximum amount allowed by law. While these limits vary by jurisdiction, common small claims actions include:
- Unpaid debts – If someone owes you money owed and refuses to pay, you can take them to small claims court.
- Landlord-tenant issues – Disputes over security deposits and property damage are frequently handled in small claims court.
- Property disputes – If a contractor damages your real property or a mechanic improperly repairs your car, you can seek compensation.
- Breach of contract – If an agreement is not honored, you can sue for damages. For example, if your employer changes your starting date on the offer letter.
However, small claims cases typically do not involve complex matters such as child support, divorce, or cases requiring injunctive relief. These cases are instances where the court orders someone to do or stop doing something).
Key Differences Between Small Claims Court and Regular Lawsuits
If you want to learn how to file a lawsuit in different courts, you need to learn the differences between claims and their factors. Here’s a quick breakdown of some common factors.
1. Amount of Claim
The money involved in a dispute is a key factor in determining whether a case belongs in small claims court or regular lawsuits:
a) Small claims court:
Typically handles claims under $5,000, though some jurisdictions allow natural persons (not businesses) to sue for up to $10,000.
b) District court:
Handles civil lawsuits involving amounts between $5,000 and $30,000.
c) Circuit court:
Handles larger claims exceeding $30,000, though some exceptions apply (e.g., landlord-tenant issues may remain in district court).
2. Court Fees and Costs
Filing a case in small claims court is generally much more cost-effective than a regular lawsuit:
- Filing fees are lower, making it more accessible to individuals.
- Attorneys’ fees are not an issue since most cases do not allow lawyers.
- Other court costs (e.g., administrative fees) are minimal compared to those in superior court or circuit court.
- In some cases, individuals may qualify for fee waivers, reducing the financial burden.”
In contrast, a regular lawsuit requires more financial commitment as it requires:
- Legal representation costs
- Additional court proceedings
- Potentially higher court fees.
3. Discovery and Evidence
One of the biggest distinctions between small claims court and regular lawsuits is how evidence is gathered and presented.
- Small claims court:
- No discovery process (formal collection of evidence from the other party).
- Court rules are more relaxed; parties present evidence informally.
- Witnesses may be called but are not always necessary.
- Regular lawsuits:
- Allows formal discovery, including interrogatories (written questions), depositions, and document requests.
- Follows strict civil procedure and formal rules of evidence.
- More extensive pre-trial motions and procedures.
4. Representation and Assistance
- Small claims court: Lawyers are generally not allowed to appear on behalf of parties, though they can help prepare the case.
- Regular lawsuits: Parties are often represented by attorneys, especially in complex cases involving substantial amounts of money or legal intricacies.
If considering a civil lawsuit, weigh the benefits of lawyer representation against the costs involved for a better estimation.
Differences Between Small Claims Court and Regular Lawsuits
Here’s a quick table explaining the difference between small claims court and regular lawsuits for your reference.
| Factor | Small Claims Court | Regular Lawsuits |
| Amount of Claim | Up to $5,000 (or $10,000 for natural persons in some jurisdictions) | Over $5,000 (District Court: $5,000 – $30,000, Circuit Court: $30,000+ in most cases) |
| Court Fees and Costs | Lower filing fees, no attorney fees, minimal court costs | Higher filing fees, attorney fees, and other court costs |
| Legal Representation | Lawyers not allowed in most cases | Lawyers commonly required |
| Rules of Evidence | Relaxed, informal | Formal rules apply |
| Discovery Process | No formal discovery | Depositions, interrogatories, document requests allowed |
| Trial Format | No jury, judge makes decision | Jury trial may be requested |
| Time to Resolution | Cases resolved quickly | Cases can take months or years |
| Appeal Options | Usually no right to appeal | Appeals allowed |
However, some cases might not fall in either of the courts. For example, harassing phone calls generally don’t fall under the typical scope of small claims court. Small claims court is primarily used to resolve disputes involving money or property, not issues like harassment.
The Court Process: What to Expect While Filing a Lawsuit in Small Claims Court
Filing a lawsuit in small claims court is often the first step when seeking to resale disputes involving smaller amounts of money. This process is designed to be more straightforward and accessible compared to regular lawsuits. However, it’s still essential to understand the key steps and requirements.
Steps to File a Lawsuit:
1. Attempt Informal Resolution
Before filing a claim, consider resolving the dispute informally through direct communication, mediation programs, or settlement negotiations. Courts often encourage this step to save time and resources. For example, you can try to resolve employer retaliation in subtle workplace scenarios on your own. If not, then you can move to the next step.
2. Gather Evidence
Collect all necessary documentation to support your case. This may include contracts, invoices, and receipts. Similarly, it can include written agreements, photographs, or any other relevant records.
Remember well-organized evidence can significantly impact the court’s decision and help you get a more favorable outcome.
3. File a Claim
Submit a complaint at the appropriate courthouse, which is typically the court located where the claim arose or where the defendant resides. The court clerk will provide the required forms and instructions for completing the filing process. A filing fee may be required.
4. Notify the Other Party
Properly serving the defendant with notice of the lawsuit is crucial. This ensures that the defendant is aware of the case and has an opportunity to respond. Service can often be completed through a process server, sheriff’s office, or certified mail, depending on jurisdictional rules.
5. Attend the Hearing
Both parties will present their cases during the scheduled hearing. The judge will review the evidence, listen to testimonies, and make a ruling. In small claims court, the judge typically delivers a decision the same day or shortly afterwards.
Jury Trial in Regular Lawsuits
In contrast to small claims court, where the judge makes the decision, regular lawsuits may involve a jury trial upon request. Jury trials add complexity to the legal process, including jury selection, additional hearings, and procedural requirements.
Key Differences Between Judge Trials and Jury Trials:
- Decision-Maker: In a judge trial, the judge alone determines the case’s outcome. In a jury trial, a panel of peers listens to the evidence and renders a verdict.
- Preparation: Jury trials often require more extensive preparation, including pre-trial motions, witness preparation, and adherence to formal rules of evidence.
- Costs: Jury trials tend to be more expensive due to higher court fees, expert witness costs, and extended trial durations.
Collecting a Judgment
Winning a case doesn’t guarantee immediate payment. The court issues a judgment in the winning party’s favor, but enforcing the judgment may require additional steps.
Strategies for Collecting a Judgment:
- Request a Court Order: If the defendant does not voluntarily pay, the court can issue orders to facilitate collection. This might include wage garnishment, bank account levies, or liens on property.
- Seizure of Property: In some cases, the court may authorize the local sheriff to seize and sell the defendant’s non-exempt assets to satisfy the judgment.
- Payment Plans: The court can also help set up a payment plan if both parties agree to it.
Alternatives to Small Claims Court: Settlements and Mediation
Going to court isn’t the only way to resolve disputes. Mediation and settlement offer cost-effective and less adversarial alternatives.
Mediation involves a neutral third party who helps the disputing parties communicate effectively and reach a mutually acceptable resolution. Unlike court judgments, mediated agreements can address interests beyond legal rights and obligations.
Benefits of Mediation:
- Cost-Efficiency: Mediation is generally less expensive than a court trial.
- Time-Saving: Disputes can often be resolved in a single session.
- Relationship Preservation: Mediation is especially useful in disputes involving ongoing relationships, such as between neighbors, business partners, or family members.
- Flexibility: Mediation allows for creative, customized solutions that courts may not be able to provide.
Small Claims Courts vs. Regular Lawsuits: Which Is Right for You?
Choosing between small claims court and a regular lawsuit depends on several factors:
- The amount of money involved – Is the dispute worth pursuing in circuit court or district court?
- Time commitment – Are you willing to endure a lengthy trial process, or do you prefer a quicker resolution?
- Complexity of the case – Does your case require extensive evidence and expert testimony?
- Appeal options – Are you comfortable with a final decision, or do you want the option to appeal?
Final Thoughts
If you start carefully considering these factors, you can determine the best legal avenue for your case. It doesn’t matter if you choose small claims court for its cost-effective and decided quicker process or a regular lawsuit for its more thorough legal procedures, understanding your options is the key to success in the legal system.
However, if you need further assistance with your case, we recommend reaching out to our legal representation at Bourassa Law Group. Our professionals guide clients through all kinds of court cases, with a large variety of practice areas covered.
We recommend talking to our professionals and finding the solutions to your problems.
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