Benefits of Small Claims Courts

As most people already know, many jurisdictions have small claims courts that allow parties to recover small sums of money with streamlined procedures. In fact, both New York and New Jersey have a few types of small claims courts, one that allows for the recovery of several thousand dollars, and another court that allows parties to recover several times more than this amount. Although the amount that can be recovered in these courts is capped, and litigants usually need to waive rights to a larger recovery, there are a number of benefits of small claims courts.

Time Periods

One of the main benefits of small claims courts is that it usually takes months instead of years to resolve a case.  During a regular lawsuit, parties need to file motions, exchange documents, and conduct a number of other tasks associated with a case.  Although there may be some discovery and motion practice during small claims cases, this is usually only to a limited extent.  Because there is not much back and forth before trial in small claims court, parties do not need to wait long periods of time before obtaining a recovery.

Fees

Another one of the benefits of small claims court is that it usually costs less money to file a lawsuit in such a court.  In order to file a typical lawsuit, parties must usually pay hundreds of dollars in filing fees.  Although fees may be waived for parties that prove they cannot pay these sums, most people need to shell out a significant amount of money to file a lawsuit.  In small claims court, however, the filing fees are around five to ten times less than they may be with a regular lawsuit.  Since the filing fees are significantly lower in small claims courts, parties may be more enabled to file a case in order to recover money.

Procedures

Simplified procedures is also one of the important benefits of small claims courts.  When lawsuits are in regular courts, there are a number of procedures and rules that must be followed while a case is litigated.  Documents needs to be requested, materials need to be produced, and there are often time-sensitive deadlines that must be met before trial.  Furthermore, the trial itself may be complicated, since there are motions that must be filed before trial, forms that should be submitted, and other procedures that must be considered.

In small claims court, many of the procedures are simplified.  There is often not much discovery before trial, which eliminates substantial complexity from a case.  Furthermore, at the trial itself, there are usually relaxed procedures.  In addition, the judge and court staff usually assist litigants when they are presenting evidence and completing other tasks during the trial of a matter.  Since the procedure of small claims courts are relaxed, parties should be less intimidated about filing a lawsuit in one of these courts.

Attorney Involvement

Some parties may legally need to have an attorney in order to prosecute or defend a lawsuit in court.  For instance, corporations in many states (including New York and New Jersey) cannot defend a lawsuit in court unless they are represented by counsel.  However, some small claims courts allow corporations to defend a claim without an attorney, and some courts also allow corporations to prosecute claims without counsel.  This is one of the important benefits of small claims courts, because it means that small businesses which might not be able to afford an attorney can still have their day in court.  It is important to do your research about whether an attorney is required, because different courts of limited jurisdiction have different rules, and appearing without an attorney when you need one can cause problems.  Nevertheless, this is another one of the important benefits of small claims courts.

Access to Courts

Another one of the benefits of small claims courts is that there is better access to the courts.  It is oftentimes difficult for people with jobs to attend all of the hearings that are related to defending or prosecuting a case.  This is because most of these hearings are held during the day, and it is very difficult to move the time of the hearing to a date that is most convenient for the parties.  Furthermore, in a regular lawsuit, there are many filings that must be made, and if parties are not registered to file papers electronically, or this is not available in the jurisdiction, parties may have to come to court to file documents.

However small claims courts often have a number of benefits for parties who may have a difficult time litigating due to work and personal responsibilities.  Some (but not all) small claims courts schedule hearings and trials at night so that parties have an easier time coming to court.  In addition, many small claims courts allow parties to serve process by mail or otherwise minimize the amount of time the parties need to devote to prosecuting the case.  This all has the effect of eliminating some of the obstacles to defending or prosecuting a claim in court.

It often pays to speak to an attorney even if you face a claim in small claims court, especially if the amount of money involved is close to the maximum that can be recovered in such courts.  If you are looking for an experienced New York and New Jersey litigation attorney, please feel free to contact The Rothman Law Firm to request a free consultation.