What If Your Claim is Above the Small Claims Court Limit?kapoorparalegal
What If Your Claim is Above the Small Claims Court Limit?
We all know that Small Claims Court have many benefits to offer ranging from a simple and quick process to easy representation options in the court. But can everybody appeal in a small claims court?
Small Claims Court Limit of $25,000:
As the law orders, one can appeal in a Small Claims Court only if his/her claim is under the value of $25,000. Anybody who wishes to file a case at Small Claims Court, but surpasses the claim limit of $25,000 will still be allowed to sue under Small Claims Court. But any amount exceeding $25,000 will have to be forgone and cannot be claimed for under the Small Claims Court judgement.
Why Would Anybody Do That?
Here’s a Scenario:
You wish to file a case for your unpaid sale of $29,300. While approaching the court, you found out that a civil lawsuit lawyer would charge you around $2000 to simply make the initial Statement of Claim, and will charge more ranging from $8,000 to $20,000 for participating further. Evaluating the scenario you then decide to forgo the excess $4,300 over the Small Claims Court Limit and eventually file your case there.
How Do Small Claims Court Charge?
As simple and pocket friendly Small Claims Courts want their process to be, a few costs they incur are charged as filing fee and defence fee. You as a plaintiff will have to pay the filing fee which would be around $75 and the opposite party will be paying the defence fee around $40. You may represent yourself at the court, but in case you want to hire a paralegal, it would give you a better case. Their charges are not much and can be also be recovered once you win the claim. The losing party will be paying the legal fee of the opposite, with a cap up to 15% of the claim.