Introduction
If you’ve been wronged by a company and need compensation, filing a small claim can be an efficient way to seek justice. Small claims court provides a streamlined and affordable process to resolve disputes involving unpaid services, faulty products, or other business-related issues.
This guide walks you through the steps to make a small claim against a company, from preparing your case to collecting a judgment.
1. Can You File a Small Claim Against a Company?
Yes, individuals can file small claims against companies, including corporations, limited liability companies (LLCs), and sole proprietorships. The company must operate within the jurisdiction where you’re filing the claim.
2. Common Reasons for Filing a Claim Against a Company
- Unpaid Refunds: The company failed to issue a promised refund.
- Defective Products: The product purchased was faulty, and the company refused to repair or replace it.
- Breach of Contract: The company did not honor the terms of a service or sales agreement.
- Property Damage: Damage caused by a company’s negligence (e.g., a service provider).
3. Determine Eligibility to File a Small Claim
Monetary Limits
Small claims courts have a maximum monetary limit that varies by jurisdiction:
- United States: $5,000–$10,000 (varies by state).
- Canada: CAD $5,000–$35,000, depending on the province.
- United Kingdom: £10,000 in England and Wales; lower limits in Scotland and Northern Ireland.
Jurisdiction
File the claim in the court where:
- The company is based.
- The transaction or incident occurred.
4. Steps to File a Small Claim Against a Company
Step 1: Attempt to Resolve the Issue
- Contact the Company: Reach out to the company to explain the issue and request resolution.
- Send a Demand Letter: If initial efforts fail, send a formal letter outlining your claim, the amount sought, and a deadline for resolution.
Step 2: Gather Evidence
- Collect supporting documents, such as:
- Receipts, invoices, or contracts.
- Emails or written correspondence with the company.
- Photos or videos of defective products or damages.
Step 3: Complete the Required Forms
- Obtain the necessary forms from your local small claims court or its website.
- Fill out the forms accurately, including:
- Details of the company, such as its legal name and address.
- A description of the issue and the amount you’re claiming.
Step 4: File the Claim
- Submit the completed forms to the appropriate court.
- Pay the filing fee, which typically ranges from $20 to $200, depending on the claim amount and jurisdiction.
Step 5: Notify the Company
- Serve the company with the claim documents through an approved method, such as:
- Certified Mail: Sent by the court or plaintiff.
- Process Server: Delivered by a professional service.
- Sheriff’s Office: Some jurisdictions allow service by law enforcement.
5. Preparing for Your Hearing
Organize Your Case
- Arrange evidence logically and create a summary of events.
Practice Your Argument
- Prepare a concise explanation of why the company owes you compensation. Focus on facts and avoid emotional arguments.
Identify Witnesses
- If applicable, bring witnesses who can testify to support your claim.
6. What Happens at the Hearing?
- Present Your Case: Explain your claim, submit evidence, and call witnesses if needed.
- Company’s Defense: The company will have an opportunity to respond.
- Judge’s Questions: Be prepared to answer any questions from the judge.
- Ruling: The judge will issue a decision either immediately or notify you later.
7. Collecting a Judgment
If the court rules in your favor but the company doesn’t pay, you may need to enforce the judgment:
- Wage Garnishment: If the company is a sole proprietorship, you can request wage garnishment.
- Bank Levy: Seize funds directly from the company’s bank account.
- Property Lien: Place a lien on the company’s assets.
8. Frequently Asked Questions
1. Can I sue a large corporation in small claims court?
Yes, as long as the claim amount falls within the court’s monetary limits.
2. Do I need a lawyer to file a claim against a company?
No, small claims court is designed for self-representation, but consulting an attorney can be helpful.
3. What happens if the company doesn’t appear in court?
The court may issue a default judgment in your favor.
4. Can I file a claim against an online company?
Yes, if the company does business in your jurisdiction or the transaction occurred there.
5. Can I settle with the company before the hearing?
Yes, you can negotiate a settlement at any time. If resolved, you can dismiss the case.
6. How long does it take to resolve a small claim?
Most cases are resolved within 1–3 months, depending on the court’s schedule.
9. Conclusion
Making a small claim against a company is a straightforward way to seek justice for disputes involving unpaid money, defective products, or other grievances. By preparing thoroughly and following court procedures, you can confidently present your case and achieve a fair resolution.