Small Claims Court
A simplified, low-cost court designed for disputes involving small dollar amounts — typically $5,000–$15,000 depending on the state — where parties usually represent themselves.
Small claims court is a specialized division of the civil court system designed to handle minor monetary disputes quickly and without the formality of regular civil litigation. Dollar limits vary by state — California allows up to $12,500 for individuals, while Texas allows up to $20,000 and New York's limit is $10,000 in NYC. Filing fees are low ($30–$100) and most cases are heard within 30–70 days of filing.
The procedure is intentionally simplified: parties present their case directly to a judge (or magistrate) without formal rules of evidence. Most litigants represent themselves — some states actually prohibit attorneys in small claims proceedings. Bring organized documentation: contracts, photos, receipts, text messages, and a written timeline of events.
Small claims judgments are legally binding but collecting can be challenging if the losing party refuses to pay. Collection tools include wage garnishment, bank levies, and liens on property — but they require additional legal steps. Winning a judgment and actually collecting money are two different things.
Real-World Example
The landlord kept the security deposit without cause; the tenant filed a $3,200 small claims case, paid $75, and won a judgment two months later — then collected via bank levy when the landlord didn't pay voluntarily.