3 Rules to Succeed in Small Claims Court

Lots of Disputes die before they ever get to court.  Lots of collection efforts are just written off.  Lots of contracts are not enforced. A common reason for all of these is that businesses do not understand that there is a way to try to get an effective resolution through the Small Claims Court process.

The following is a basic outline of the steps and rules for Small Claims Courts in Utah. To be clear, every situation is different, and if you have questions that the following does not answer, feel welcome to reach out and schedule a complimentary strategy session to discuss your situation.

1) The dispute must be seeking to recover money from the other party, and fall under the cap limit.

This can be about enforcing a contract, or collecting on an unpaid bill, or getting paid for services already given, and many more.  The reason doesn’t matter, but generally, you need to be seeking to recover money.  Related to this, your claim has to fall under the total cap. As of the writing of this article, in Utah, that means that the final judgment will be no more than:

(A)         on or after May 4, 2022, through December 31, 2024, $15,000 including attorney fees but exclusive of court costs and interest;

(B)         on or after January 1, 2025, through December 31, 2029, $20,000 including attorney fees but exclusive of court costs and interest; and

(C)         on or after January 1, 2030, $25,000 including attorney fees but exclusive of court costs and interest;

The court costs could be about $500. Interest will vary depending on the contract or laws involved. Even if your total claim is for more than the cap, if you win, then your judgment will simply be capped at the required amount.

2) Have a written contract.

This is a good rule of thumb for any dispute, but in small claims, it is even more important. The more you can document why you feel you should receive certain money, the easier it will be for the court to grant that kind of award. Yes, you can enforce a verbal agreement in Small Claims Court, but your chances of success dramatically improve when the contract is in writing.

3) Small Claims Courts don’t have an ATM in the back!

Many businesses believe that if they “win”, then that is the end of it and the Judge will force the other side to pay money right away.  That simply is not how it works. Once you win, there are two paths to go down. The first is negotiating with the other party to pay the judgment and avoid further court proceedings (which they usually will use to negotiate a discount). The second option is to have to force the other party to pay, which is usually another lawsuit, or at least additional procedures to get the other side to pay (i.e. garnishment, liens, etc.)

Conclusion

Small Claims is a great way for companies to recover money owed to them, but the above are things to keep in mind as you discuss ways to get paid more of the money you have earned and you are owed.