Not every small claims dispute has to be handled in court or through mediation. By sending a small claims demand letter, you may be able to resolve the issue peaceably without taking any further action.
What Is a Small Claims Court?
Small claims court, sometimes called “people’s court” or “conciliation court,” is a type of civil court proceeding which handles disputes involving small amounts of money. The maximum amount to be handled in small claims court varies by state.
A small claims demand letter should be sent before you file your lawsuit and can serve as substantial evidence if you need to litigate the issue. Oftentimes, a demand letter is enough to settle the dispute, but you should be prepared to go to court if that is not the case.
Why File a Small Claims Case?
Even if someone only owes you hundreds or a few thousand dollars, that money can make a big difference for average people. If you had an agreement that they would pay you a certain amount, you are still entitled to that money. Small claims court allows you to be heard and to receive the money you’re owed.
Small Claims Court Limits for Each State
Each state will have different limits regarding the amount of money that can be sued for in small claims court. This limit is often in the thousands, so small claims are often for hundreds or thousands of dollars. The state limits for small claims court are as follows:
| State | Dollar Amount |
|---|---|
| Alabama | 6000 |
| Alaska | 10000 |
| Arizona | 3500 |
| Arkansas | 5000 |
| California | $10,000 for individuals; a plaintiff may not claim over $2,500 twice in the same year. $5,000 for a business or public entity. $6,500 for a guarantor that charges for guarantor services. COVID-related rental debt claims of any amount until February 1, 2025. |
| Colorado | 7500 |
| Connecticut | $5,000 except in cases of landlord-tenant security deposits |
| Delaware | 25000 |
| District of Columbia | 10000 |
| Florida | 8000 |
Small Claims Demand Letter Example
Need to send a small claims demand letter? This example will give you the information you need to include.
Filing a Small Claims Case in 5 Steps
A small claims case is fairly easy to prepare compared to cases worth more money. You will need to bring evidence of the original agreement, as well as evidence of the amount that you are owed. Here are five steps to filing a small claims case:
1. Write a Small Claims Demand Letter
The first step is to write a small claims demand letter. Often, this is the only step that you will have to take. The threat of court can be enough to convince some people to pay even if they were dragging their feet before. Make sure you include evidence of your claim in the letter so that the other person cannot easily dispute it.
If they pay within the time in your small claims demand letter, there’s no need to take further action. The dispute between you has been settled, and you can confidently move on. If, however, they refuse to respond to the small claims demand letter or refuse to pay, then you need to move forward with the case.
2. File Your Case
The next step is to file a complaint and a small claims summons. You can find forms for complaints and summons at your local small claims court.
Your complaint should include exhibits that show evidence of the agreement and the money owed. For instance, screenshots of a text conversation or email, or even a slip of paper laying out the terms of the agreement, can go a long way for your case.
3. Serve Your Small Claims Complaint
Send out a summons by certified, registered mail. This will need to be signed in person by the defendant. It will lay out when they will appear in court for the case and why. If they fail to appear in court, the court will most likely side with you and require them to pay you the amount in question.
4. Attend the Hearing
The court will set a date for your hearing. At that time, you must appear in court to present your case. In most situations, small claims court is just the plaintiff and defendant. Many states will not allow you to have an attorney represent you in small claims court, though an attorney may advise you before the case.
If you do not attend the hearing, the court is much more likely to dismiss your case or side with the defendant. The burden is on you to prove your case, and you cannot do that if you aren’t present.
5. Wait for the Judge to Issue the Final Judgment
Small claims cases take less time on the whole than other civil cases. Most small claims cases are resolved within under a half hour. After this time, the judge will give their final judgment.
They may side with the plaintiff and demand that the defendant pay all or some of the amount in the suit. They may dismiss the claim outright. On the other hand, they may grant part of the plaintiff’s claim and part of the defendant’s countersuit, ruling that each party has an amount to pay.
How to Write a Small Claims Demand Letter
Every small claims demand letter will differ, but certain elements will always be necessary.
In addition, it can help to lay out how you have attempted to reach them about the issue in the past. If all goes well, the other party will pay after receiving the small claims demand letter.
If they do not, however, that letter becomes evidence for your case. It will strengthen your case to show that you made multiple attempts to resolve the issue before going to court, especially if those attempts were ignored by the defendant.
The more written communication, the better for your case. That’s why, even though you and the other party know why they owe you the money, it is important to ensure that the case details are described in the small claims demand letter. You must also be certain that the other party receives the small claims demand letter. It’s best practice to send it by certified mail so that you will receive a receipt with their signature confirming that they received the letter.
Need help drafting a small claims demand letter? Consider using Legal Templates to create one and make the task go smoothly.
Small Claims Demand Letter Sample
FAQs
Before filing your case in small claims, be advised that there are filing fees for these cases. The filing fee will vary by state. In some states, the filing fee may vary based on the amount of your claim. This fee will typically be under $100, but it’s best to check with your state government’s small claims proceedings before you move forward.How much does it cost to sue someone in small claims?
In a small claims hearing, you and the defendant will appear before a judge. You may bring a witness with you if they can attest to some of the information in your claim, beyond a “he said, she said” statement. The defendant may also bring a witness. The case generally lasts between 10 and 25 minutes. The judge may make a final ruling as soon as both cases have been presented, or they may call a recess to go over the facts before making a ruling. Once the judge has ruled, the plaintiff and defendant must abide by the ruling or file an appeal with the Court of Appeals.What is a small claims court hearing like?
The most important thing to do is to gather all important documentation. Although verbal contracts are legal, they can be difficult to prove. A written contract is best, even if that “contract” is simply a text or email in which someone agreed to pay you a certain amount. This should be brought to your case. If your case involves any damaged property, take pictures of the property damage. Images of what the property looked like before will strengthen the case, as well. You should also bring a copy of your small claims demand letter and other records documenting your attempts to reach the defendant for payment. You may also choose to bring a witness. In most states, you will not be allowed to bring an attorney to represent you. Even in states where you can legally be represented by an attorney in small claims court, it’s typically not advised. This is a small, simple matter that can usually be resolved between the plaintiff, the defendant, and the judge. Hiring an attorney just brings about extra, unnecessary fees. However, you may hire an attorney to advise you and help you build the case before going to court.How do I prepare for the small claims hearing?