This article is reproduced from the Summit Daily News, October 6, 2010, by permission of author Noah Klug.
Many potential clients come to me with cases that are not economical to pursue with an attorney given the relatively small amount in dispute. I often advise these people to pursue their cases in small claims court. Here's an overview of the small claims court process.
Small claims courts do not have authority to hear every kind of case. The jurisdiction of small claims courts is limited to claims that do not exceed $7,500 plus costs and interest. Small claims courts generally only decide cases for money damages or concerning enforcement of restrictive covenants.
A plaintiff commences a small claims case by filing a complaint against the defendant using a standard form available at the courthouse or at http://www.courts.state.co.us. The complaint must be filed in the county where the defendant lives, works, goes to school at a college or other institution of higher education, or has a business office. Two exceptions are security deposit disputes and restrictive covenant disputes, which can be filed in the county where the property at issue is located. The plaintiff must pay a fee at the time the complaint is filed.
The complaint form requires the plaintiff to describe the nature of the claim in plain language. The plaintiff should be certain that he is suing the correct person or entity such as a limited liability company or corporation. The complaint must identify the “registered agent” for an entity, which is a person authorized to accept service of legal papers. Information about entities and registered agents is available at http://www.sos.state.co.us.
Once a complaint is filed, the clerk of the court will complete the form and indicate the date set for trial. The plaintiff must then serve a copy of the complaint on the defendant at least 15 days before trial, or the trial will be rescheduled. The plaintiff can choose to have the complaint served (a) by a person over the age of 18 who is not involved in the case or is not a family member of someone involved in the case; (b) by the sheriff's department; or (c) by having the clerk send the complaint to the defendant by certified mail. Service by certified mail is complete if the defendants accepts or refuses to accept the mailing.
After service, the defendant must file a response and pay a fee on or before the trial date stating in plain language why he believes the complaint is not valid. The defendant's response can include a “counterclaim,” which is a claim against the plaintiff. If a counterclaim is for more than $7,500 the case may need to be transferred out of small claims court to a court that has jurisdiction to hear all the claims.
While a plaintiff in small claims court cannot initiate the case using an attorney, the defendant can choose to be represented by an attorney by filing a notice with the court. The plaintiff is also then permitted to have an attorney. There are other special rules about when attorneys are permitted to appear in small claims court.
When the parties show up for trial, they may first be required to meet with a neutral mediator to discuss settlement. If the parties do not reach settlement, they will proceed to trial, which is typically before a magistrate instead of a judge. The magistrate will permit each side to explain its side of the case. It is important for the parties to be organized and prepared to present relevant evidence. At the completion of the trial, the court may enter judgment against one of the parties. The winning party can then attempt to collect the judgment.
Small claims court provides an effective way of resolving disputes without the parties incurring unnecessary expense. For more information, I recommend reviewing the materials on the court website referenced above.
Noah Klug is principal of The Klug Law Firm, LLC, a general law practice in Summit County emphasizing real estate and business law. He may be reached at (970) 468-4953 or Noah@TheKlugLawFirm.com.
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