Question #1
Question:
Someone owes me $2,500 and I’m looking for a simple way to collect it.
Any ideas?
Answer:
The easiest way to collect that debt might be to file in small claims court, a
special court in which disagreements can be resolved cheaply and without attorneys. Small
claims actions must be just that: claims of $5,000 or less.
One exception is that no party may file more than two actions in which the amount demanded
is $2,500 or more in the same calendar year in California.
Begin by filling out a plaintiff’s claim form available at the small claims desk of a
municipal court in the proper district of the proper county. You may file your claim in
the jurisdiction: where the defendant lives; or where you were injured or your property
damaged; or where you entered into the disputed contract or it was breached.
Once you have filed your claim, the court sets a hearing date and you must ensure that the
defendant is served with your claim. You may pay a small fee to have the county marshal
serve the claim or you may have someone age 18 or over who is not a party to the action
serve the defendant. It is not uncommon for the defendant to offer to settle the case once
served, rather than appear in court.
If the small claims action proceeds, its principal advantage is that it is an informal
procedure conducted without attorneys representing the parties. Each side simply states
his or her case and presents relevant documents. After the hearing, the court enters
judgment and mails each party its decision.
Unlike most courts, only the defendant – not the plaintiff – may appeal the
judgment. Any appeal would be tried in Superior Court as a new trial, treating the small
claims hearing as if it never occurred. At this point, the parties may be represented by
attorneys.
A small claims court action typically costs less than $50 in fees, making it an ideal
solution to disputes involving small dollar amounts. In fact, because of its low cost and
simple procedures, some people owed slightly more than $5,000 will decide to seek just
$5,000 of the outstanding debt so that they can take advantage of the informal small
claims court process.
