Small claims court is a valuable resource for people who have been wronged but cannot afford to hire a lawyer. However, there are some drawbacks to using small claims court that you should be aware of before filing a claim.
Drawbacks of using small claims court:
Limited jurisdiction: Small claims courts have limited jurisdiction. This means that they can only hear cases involving relatively small amounts of money. The monetary limit for small claims cases varies from province to province, but it is generally between $5,000 and $35,000.
No lawyers allowed: In most provinces, lawyers are not allowed to represent clients in small claims court. This can be a disadvantage for people who are not comfortable representing themselves in court.
Appeal process is limited: The appeal process for small claims decisions is limited. In some provinces, there is no right of appeal at all. In other provinces, the appeal process is very complex and expensive.
Even if you win your small claims case, it can be difficult to collect the judgment. The defendant may not have any assets to seize, or they may simply refuse to pay.
Here are some specific examples of the drawbacks of using small claims court:
- If you have been injured in a car accident and your damages exceed the small claims limit, you will need to file your case in superior court.
- If you have a dispute with a large corporation, the corporation may have experienced lawyers who can represent them in small claims court.
- If you win your small claims case but the defendant refuses to pay, you may need to hire a lawyer to enforce the judgment.
How to minimize the drawbacks of using small claims court
There are a few things that you can do to minimize the drawbacks of using small claims court:
- Choose your cases carefully: Don’t file a small claims claim unless you are confident that you have a good case and that the defendant will be able to pay the judgment if you win.
- Prepare thoroughly: Gather all of your evidence before the hearing and be prepared to tell your story clearly and concisely.
- Consider mediating your dispute: Mediation is a free process where a neutral third party helps the parties to reach a settlement. If you can reach a settlement with the defendant through mediation, you will avoid the drawbacks of going to trial.
If you have any questions about the drawbacks of using small claims court, you can contact your local small claims court.
This article is for general informational purposes only and is not legal advice. Contact us today to discuss your specific situation.