What is the Small Claims Court?
Small claims court is designed to quickly resolve minor civil disputes. In small claims court, the customary rules of evidence and procedure do not apply and hearings are generally informal. Defendants, who owe the plaintiff money, may buy a case and be spared bringing counterclaims. Most small claims courts are located in large urban centers and hearing calendars are held on a weekly or a bi-weekly basis. The idea behind the creation of small claims courts is to simplify the trial process and speed resolution of disputes . For example, a person can bring a claim against a friend or family member in small claims court for loaning them money. Or, a plaintiff may bring a claim against a contractor for damage that was done to their home. Additionally, a small claims court is one of the few courts that issue summary proceedings for an eviction. In New York, there are two types of small claims courts: (1) a town or village court; or (2) a city court. These small claims courts only hear low dollar amount civil matters.
Determining your eligibility for Small Claims Court
For most small claims courts in New York State, individuals, partnerships and corporations may file cases. Municipalities and government agencies must initiate legal action by filing their lawsuit with the New York State Supreme Court (or the appropriate court in their county), as municipalities and governmental agencies cannot file cases in small claims court.
Small claims courts adjudicate only civil claims based on money damages. While an individual may file a demand with one small claims court, he/she cannot file claims with different small claims courts for the same matter unless extraordinary circumstances exist. In these cases, the applicant is required to seek leave of the court. Parties filing in small claims court cannot claim interest or punitive damages. Also, parties must be residents of the municipality where small claims court is located. An exception is allowed if clarification of subject property occurs when individuals do not reside within the judicial district that maintains jurisdiction.
Monetary limits in small claims court range from $1,000 to $7,500. Small Claims Court is available to litigants in several cities in New York State, as well as in towns and villages throughout the Lower Hudson Valley, Long Island, Northeastern and Central New York. Several of the largest cities in New York do not maintain small claims courtsales, but instead refer litigants to the appropriate Justice Court (located within those cities) or to the New York State Supreme Court venue that has subject matter jurisdiction.
How to file a claim
Filing a Small Claims Court Action in NY: A Complete Guide
Before a case will be heard in small claims court, you must bring it to the small claims court clerk. In Manhattan, that court is located at 111 Centre Street. In Brooklyn, the small claims clerk is located at 141 Livingston Street. In Queens, the small claims court clerk is located at 89-17 Sutphin Boulevard. If you file your case in Queens County, the Court will mail you a notice of court date at least 10 days before your hearing. If you file your case in one of the other four counties, you will be told your date and time at the time you file.
You have to fill out a form called an "Initiating Litigation Form." The Initiating Litigation Form has all of the information, including the claim and the witness names and addresses. You must sign the Initiating Litigation Form under penalty of perjury. It is a felony to falsify this form. You should also bring along a stamped envelope containing the Defendant’s name and address. The small claims court clerk will mail a copy of your case to the Defendant. Also, bring the necessary filing fee. You may pay cash, or with a credit card. If any funds are involved, then you may have to post a bond. For example, say you want to sue an office supply company for $700. The small claims court will not hold a defendant’s bank account or garnish wages without a bond. Therefore, you would post a $100 bond. Once you win your case, if the creditor does not pay, the court will then administer and collect funds on your behalf. For cases not involving money, the court does not require any bond, except in defamation cases; then the Court requires a $100 bond. Some other courts, such as in Manhattan, require a bond, regardless of the nature of the case be deposited.
Preparing your case
Prepare for your case. Like many Court proceedings, a Small Claim occurs in steps. The Plaintiff will need to prepare for their case against the Defendant, while the Defendant may also consider alleging a counter-claim for money owed to them or for other damages that may have happened. For instance, if you owe back rent, you might want to sue as a Counterclaim for that amount instead of as a separate Small Claim.
Usually the Plaintiff and the Defendant will exchange information about the case and any documents they each may have to support their side of the "story." This exchange is called "Discovery." The Plaintiff, as the party who started the case, is responsible for determining the names and addresses of witnesses they are going to use for their case, figuring out how much more money they want from the Defendant (if any), and determine if there are any documents they need for their case. The Plaintiff should also prepare their case on paper mostly as a list of what they owe and what backs that number up. The Plaintiff will also provide copies of all documents they think they might need during their case and provide copies to the Defendant before the scheduled trial.
The Defendant’s responsibilities are different than the Plaintiff’s. Usually the Defendant only needs to figure out the amount of money the Plaintiff owes them. The Defendant files this document — or "Counter-claim" — to the Court along with copies for the Plaintiff and the courtroom representative, Court Attendant, who will be at the trial. The Defendant may also need to repudiate any false claims that the Plaintiff alleges that are not true. Courts often do not require Counter-claim Defendants to provide any documentation to support their claim and many times the Defendant is being accused rather than being accused themselves. Thus, they can just explain what happened (or explain why what the Plaintiff says is wrong) and provide any evidence they have to back up their story.
Who has the burden of proof? The Plaintiff, as the person who brought the case to Court, has the "burden of proof." The burden of proof means that the person bringing the case has to provide enough evidence to convince the judge that the other person owes them money. In a Small Claim, the burden is "preponderance of the evidence" or simply "more likely than not." If the Plaintiff convinces the judge that what they say is true and gives evidence to back that up, then it is "more likely than not" and they win. On a claim for $10,000.00, the Plaintiff would need only to show that it was more likely than not that, for example, a Loan Agreement was not paid what was owed. However, if the Plaintiff just alleges that the Defendant did not pay what was owed without offering any evidence, the Plaintiff will lose. This does not mean that the Defendant is responsible for providing evidence to convince the judge otherwise. It is the Plaintiff’s job to bring enough evidence to convince the judge. The Defendant can show the judge why the Plaintiff is wrong, but again, the Defendant is not responsible for convincing the judge.
The Court Hearing
The hearing process, like any other court proceeding, requires a strict adherence to the rules of the court and common sense. The plaintiff gets called first and is expected by the judge to speak clearly so the clerk can take notes, and be sure that each essential fact is told according to the rules of evidence, i.e., your receipts, photographs and witnesses are presented according to proper evidentiary procedures.
At times, the defendant is willing to agree to pay or accept a lesser figure to avoid or resolve a judgment and subsequently pursues a motion to dismiss the case by letter. If the defendant does not agree for any reason, he or she must appear before the judge on the hearing date.
The hearing, like many court hearings, is often formally conducted by the judge as an informal questioning of the parties. In other words, the format used is often a question and answer period in which the judge poses basic questions to both parties, such as "What happened here?", "How did you become involved in this matter?" and so on. The judge, if he or she feels it is necessary, will call upon witnesses and listen to them answer basic questions. The judge may also ask for the plaintiff to produce documents to support his or her side of the story.
On occasion, the hearing will involve witnesses that are called by name to act as representatives of either party, and the questioning may be more formal. The plaintiff will be questioned to see if he or she has met the burden of proof (the approximately 51% burden required by law to win the case). The defendant will have the same burden during his or her turn with the judge. Both parties will repeat the same set of questions and answers in the cross examination by the judge until he or she is satisfied that all the necessary information has been provided, and a judgment can be rendered.
One of the reasons that the small claims court process is widely used to settle disputes and grievances – especially for landlord and tenant matters – is the speed with which a judgment is rendered and a case closed. The order of the proceeding is designed to be relatively informal. The judge may question both parties and his or her witnesses if, for example, there are two or three witnesses called to the stand on either party’s behalf. The plaintiff testifies first and is generally followed by the defense. Even when two witnesses for each party are used, the process is never lengthy. Accordingly, the parties should expect a fairly painless process, but one that is uniform.
In a small claims action for personal injury or property damage, for example, the plaintiff usually makes an opening statement, and then goes on to show the extent of the injury, the pain suffered, and what costs were incurred in medical bills or repairs to a vehicle. A document brief containing supporting receipts, photographs and witness statements are usually also presented and discussed at that time. These will not be automatically admitted into evidence according to the rules of evidence because they cannot be properly questioned or argued as to their truthfulness. The defendant is expected to present evidence either in the form of a cross complaint or following the plaintiff’s statements. Once all the evidence is presented with proper objection to the rule of evidence, the judge will issue his or her decision to both parties.
While the Small Claims Court was designed to help everyone that needs to settle a dispute and move on with a more or less level playing field for both parties, the fact remains that not all cases are equal, and circumstances are unique. This basically means that the entire process is open to the judge’s interpretation of the facts and circumstances presented, and he or she has broad discretion based upon those observations. Remember, if you see the case going a certain way that you don’t want it to, you may ask for permission to be excused and go home; no information has been revealed that can be used against you. Of course, the case can return to court on another day, but the same basic procedures and opportunities for persuasion will still apply.
What can happen at court
One of the main purposes of a small claims court is to help litigants reach an agreement among themselves. If this doesn’t happen, and the case proceeds to trial, the court will usually issue a judgment within two weeks. There are various types of judgments that may be entered, including: A "default" judgment is entered against a defendant if he or she fails to answer the court’s notice of claim by the return date. The plaintiff may obtain a default judgment by requesting it after the return date has passed or by submitting an affidavit of service of a notice to they claim. The plaintiff must appear in court to request a default judgment before the court will enter one. A "consent" judgment is entered when both parties agree to the judgment. It may be presented to the court at any time, even during trial. When a consent judgment is entered, it has all the legal weight of a judgment that was rendered after trial. The court issue the consent judgment without holding a trial and enters it as if it had rendered a decision, after trial.
If a plaintiff does not appear at trial, then the case will be dismissed without prejudice. This means that the plaintiff may commence a new action on the same claim. However, if the plaintiff fails to appear because he or she had previously obtained a default judgment , then the court will dismiss the case with prejudice. In that case, the plaintiff will be prevented from commencing another action for the same claim. If a defendant fails to appear at trial, the court will enter a default judgment in favor of the plaintiff. If both parties appear at trial, or in the alternative, the defendant has not appeared and default judgment has been entered against him or her, the court will render a verdict in writing. Typically, the court will ask the plaintiff to prepare a form of judgment for the judge’s signature. If the judgment is in favor of the plaintiff, the defendant is usually required to pay the full amount of the judgment plus interest (4% above the maximum effective interest rate applicable to the consumer credit transaction under State Finance Law Section 18). If the judgment is not paid within 30 days, the plaintiff may request an execution. If a judgment is entered for the defendant, the court will typically direct the plaintiff to pay the defendant an amount that includes any expenses that the defendant incurred in connection with the litigation plus interest on those expenses (4% above the maximum effective interest rate applicable to the consumer credit transaction under State Finance Law Section 18).
Filing an appeal
The losing party in small claims cases has the right to appeal the lower court’s decision to a state Supreme Court Justice who will review the small claims file and the papers the parties submitted before the lower court. The Supreme Court will decide whether to confirm or reverse the lower court’s decision. It can confirm, reverse or modify the decision in any way it deems necessary. The Supreme Court is not required to hold a hearing in most cases.
The time period for filing an appeal is 30 days from the date of the small claims decision.
An appeal must be filed with the county clerk if the claim is up to $5,000 or with a Clerk of the Court for the part of Supreme Court that handles appeals, if the claim is for more than $5,000.
The losing party who appeals a case should attach the fee for the clerk of the Court to the small claims appeal form. A copy of the receipt for the payment of any required court fees must be attached to the appeal form. If the clerk gives the losing party an order to proceed in forma pauperis, the losing party should attach this order to the appeal form. This means the losing party does not have to pay court fees for the appeal. An appeal fee of $30 should be sent with the application, or $15 if the appeal is of a decision from a small claims assessment review hearing.
If the appeal is being filed within the time period, the Superior Court will send an order to the appellant telling them when and where the appeal will be heard. The appellant will have to show up on that day. Sometimes the appeal will be sent as a written submission, but usually the court will review a written submission and, after that, decide whether to allow oral arguments.
When the appeal is reviewed by a Supreme Court Justice, the lower court’s decision is given more weight than it would otherwise have. Additionally, the appellant cannot bring in new evidence. The Justice also cannot hear testimony about the case, with some exceptions. An exception is if the entire small claims case file needs to be sent to them. In this situation, the Justice may ask for further testimony.
When the reviewing judge is finished with evaluating the decision from the lower court, he or she will either uphold the decision; reverse it; change it in some way, such as making the winning party pay a different amount; make the defendant pay up front or pay over time; or send the case back to the lower court for another hearing. The Justice will not hear the case again, but will make the decision based on the small claims file.
If the appellant does this within 30 days of the decision, the loser is entitled to ask the reviewing judge to review an order denying a request to change the Claims Court decision.
Collecting on a judgment
When a New York small claims court award is entered in your favor, you are considered a creditor as to the amount of the judgment. You can begin the process of enforcement of the judgment once it has been transcribed. A transcription is basically a one-page document that states your case information and the amount the other party owes you. The promise to pay (i.e., judgment) has already been made; you simply need to enforce that promise.
If the other party pays the small claims court judgment voluntarily, you can ask the court to dismiss the collection case. If the other party fails to pay after being given a reasonable opportunity to do so, the collection case will continue.
The party who has a small claims case decided in his or her favor will send a notice of award (win notice) to the other party within three days of the award’s entry. The winner must also have their judgment transcribed to begin collecting the money. Once the other party has received the notice of award of a judgment in your favor, it will be your responsibility to collect the judgment. The collection process involves filing a collection case in the civil court.
If you decide to use the free collection process in the civil court, the first step will be to file an information subpoena and request for a court appearance. You will choose a court date on the information subpoena and bring it to the court to have the person subject to the collection case served. The person must be served as soon as possible after you have the order transcribed. You must have a separate document available to give to the other party at the time of service that includes the following: a copy of the judgment; a money judgment information subpoena form; an affidavit of service form; and a collection questionnaire. Your documents must be served by regular mail and certified mail, both with return receipts. The information subpoena must be served the same day. You may want to have the information subpoena served by a process server, which will give you an extra $25 handling charge.
In the court collection case information subpoena, you will both request that the other party appear in court and ask for the other party’s bank and employment information. The other party is under an obligation to complete the information subpoena within seven days of its receipt and mail it back to the requesting party.
Failing to voluntarily pay a small claims court award may lead to a civil court case for garnishment of wages or bank accounts. People in this situation will often pay some or all of the judgment before the collection case is decided by the court. If the court decides the collection case in your favor, the other party will then be required to pay your reasonable costs.
Hints for success
The key to success in small claims court lies in proper planning, preparation, and presentation. To that end, claiming victory in small claims court involves the following:
• Preparation of realistic expectations: All of the parties in small claims court are pro se (representing themselves), which, more often than not, results in a meritless claim or defense. Prior to bringing or defending a claim, be sure to weigh the costs, time, effort, and possible impact on your business reputation.
• Properly understand the small claims court process: Small claims court is not much different from the regular civil court in terms of procedural requirements. In both venues, it is imperative that parties stick with the rules and not allow their emotions to dictate their behavior or how they present their cases.
• Come ready with evidence to support your claims or defenses: Small claims court is a "trial." Therefore, don’t arrive at court without evidence to support your case. Equally , be sure to have a complete copy of all evidentiary documents for the court and the other party to properly review.
• Understand and adhere to the rules of evidence: Small claims court is not a show. Evidence must be relevant to the underlying dispute (i.e. be material) and must have sufficient probative value such that it will be a reliable predictor of the truth of the issue at hand. Do not be afraid to object if the other party fails to follow the rules of evidence.
• Understand your audience: Remember, small claims court judges are not attorneys and as such, may not be able to identify legal issues, statutory provisions, remediable defects, etc. With this in mind, try to keep things simple and clearly explain your particular situation.
• Preserve the record: Just because small claims court is informal does not mean that there is no chance for appeal. Where possible, parties should preserve the record by: (1) objecting to any objections and questions that should not be allowed; (2) asking for the judge to make findings of fact and conclusions of law; and (3) asking for an order to show cause, if appropriate, to keep the case in front of the judge.
+ There are no comments
Add yours