Introduction to Small Claims Court
Small Claims Court is a branch of the District Court that resolves damages disputes valued up to $10,000.00. If a plaintiff seeks a judgment for more than $10,000.00, they will not be heard by the Small Claims Court, but must file their case in the regular District Court. Small Claims Courts are located in the District Court in each county in Maryland.
Small Claims Courts are designed to be informal places where individuals can represent themselves without the need for a licensed attorney. In small claims court, the parties receive aid from the clerk to carry out their case, and administrative judges attempt to encourage the parties to reach a settlement. If they cannot reach an agreement, the administrative judge will decide the case for the parties. Because small claims courts are informal, there are no juries, no transcript, no written evidence or record and cause of action jurisdiction is limited to simple contract matters, account stated, trespass on the case, simple negligence, detinue, replevin and voluntary bailment. Attorney’s fees and interest are not recoverable in Small Claims Court .
In Prince George’s County, this process has been simplified further to encourage persons to represent themselves. Each division of the District Court now has a mediation program, where parties can attempt to settle before presenting their case to the court. Additionally, in Prince George’s County each party receives an instruction packet on how to complete a complaint, serve process pursuant to applicable rules and prepare for the trial. The preparation work is done by the judges’ clerk, therefore individuals do not have to worry about the complexity or length of applicable court rules and statutes. A mediation is also the first step prior to the pretrial conference. During the course of a pretrial conference, the parties will discuss with each other and the judge the case’s strengths and weaknesses and all available legal options. This provides the parties with the opportunity to settle their cases and eliminates the risks of going to trial. If a pretrial conference is unsuccessful, a trial is conducted. After the presentation of the cases, the administrative judge will render a decision.
When Does Counter Suing Apply?
When is it Possible to Counter Sue?
While your goal may be to defeat the small claim against you, you may also have a small claim against the plaintiff. Fortunately, counter suing is permitted in small claim cases. A counter claim simply means that you are filing a complaint against the plaintiff in the same case. For example, suppose the plaintiff is suing you over a phone bill. If you have filed bankruptcy, you may have a counter claim against the plaintiff because of the phone bill. In most states, you must file a claim with the clerk. In some states the counter claim is on the back of the form.
If you want to counter sue, you must file your counter claim at least five days after the date set for the hearing of the original lawsuit. This is particularly important when the date on the notice is a short period of time. It is usually easier to file a counter claim than to file a regular lawsuit. You may file an answer to the original lawsuit and file the counter claim in the same document. Be careful that you include both claims and file them with the clerk in a timely manner.
You cannot use certain defenses if you make a counter claim because you are agreeing to the court’s jurisdiction. In addition, when you file a counter claim against the plaintiff, you are consenting to the court having jurisdiction over the plaintiff’s claim against you. Similarly, you cannot have more than $5000 in dispute. In addition, strictly speaking, you can only file a counter claim if the claim arises out of a transaction that is part of the subject matter of the action.
In general, the best solution is to file the counter claim first.
Filing a Counterclaim
To counter sue in small claims court, you will need to understand the procedure and the forms to fill out. The procedure is relatively straightforward and is designed to be simple enough for a non-lawyer to complete without assistance.
If you have been served with a small claims complaint, ask the court clerk for the counterclaim forms and instructions on completing them. The counterclaim for small claims court is similar to the complaint, requiring basic information about yourself and the person suing you, the basis for the lawsuit and your explanation of the facts. The counterclaim must be filed in the small claims court where the original plaintiff filed his claim, along with a filing fee. The filing fee is usually relatively small, but that can increase if the amount you are counter suing the original claimant for is substantial.
You do not need to provide an answer to the original complaint when you file the counterclaim. If you do not file the counterclaim in a timely manner, the original plaintiff may move for a default judgment against you for the amount he claims that you owe him. The time frame in which you must file your counterclaim may vary by court. For example, some courts may allow a counterclaim even after a default judgment has been entered, whereas other may not. Counter-claimants have been rewarded various remedies under different circumstances as long as they follow through in the process.
How To Prepare
The odds of a successful counter suit in small claims court increase significantly with proper preparation of the case. The well-prepared litigant will have more confidence as he presents his case to the court.
The following is the author’s step-by-step checklist for preparing for small claims court:
___ Prepare a brief statement (a couple of paragraphs) explaining the counterclaim and the basis for it. Take the time to do this – don’t just wing it. Be sure you state that you are setting out a counterclaim for the specified reason and amount. Include a specific request for relief. For example: "On the day of the incident in question, the Defendant stole the Plaintiff’s stereo. The stereo was worth $300.00. The Defendant is liable to the Plaintiff in the amount of $300.00. The Plaintiff demands judgment against the Defendant in the amount of $300.00 plus an additional cost of $25.00 which constitutes the filing fees."
___ State the reason(s) you are counter suing the other party. It is not enough to argue that the other party did not do what they were ordered to do; rather you should counter that you were damaged by what they did or did not do and why you think they should pay you for that damage.
___ If you have invoices or bills from the other side, you must attach copies. The purpose of attaching these documents is to provide substantiation for your complaint. Even if you don’t provide documentation, the judge is unlikely to believe a party who claims they owe him nothing for an alleged debt of thousands of dollars.
___ You should list all invoices or bills, including the date, the issuer’s name, recipient’s name, total amount due and invoice number. Also provide a short description of each invoice or bill. If you can, add the defendant’s signature to the documentation.
___ Attach realistic estimates when you cannot provide an invoice or bill. In addition, you must attach a statement itemizing the costs for the goods and services you have provided, including the dates, quantity and cost.
___ If possible, get a written statement from a disinterested witness who will testify. If your witness is the only person who can corroborate your statement, it’s better to provide absolutely no evidence than to provide evidence that is incomplete or that contains too many errors. Limit what you say to what you can show through little or no prompting and make a list of all costs.
___ Create a copy of the original and one for the other party so that the judge has one, as well. Make an extra copy for your personal records. If you send the documents via a document relay service, you must send an extra copy every time you amount to the other party’s address.
___ If using an interpreter, wait near the judge before entering the court room. The clerk will direct you to a private room where the witness will review the questions and answers before you file them with the court.
___ Gather all of your evidence in a timely manner to make things easier on the day of your court appearance. The information has to be accurate and easy to obtain and understand. Make sure you have everything in order so when you file the paperwork with the court, it has all of the necessary attachments and is neatly typed.
Going to Court
While it is certainly preferable to have counsel represent you in any size litigation, including small claims litigation, there are sometimes times when that is not possible. If you find yourself in the position of having to represent yourself in a small claims court, here are some best practices and tips I have found to be helpful when presenting a counterclaim. First, be sure to bring the correct documents to court. This should include a copy of the Claim filed against you, along with any relevant pleadings attached, such as a contract, cancelled checks etc. I always try to have at least one copy of all of the relevant documents for the judge to review . Actually though, the judge typically is only interested in the claim, the counterclaim, the defendant’s reply and the evidence to support the claim and the counterclaim. Second, be sure you know the rules and procedures for the court in which you are seeking relief. The procedures are oftentimes available online and can be downloaded before the hearing so that you are not wasting valuable time once the case is called. It is also helpful to review the rules on hearings, trials and trial preparation so that you are well prepared for any testimony you may need to give. Finally, you must be familiar with the rules of evidence, including authentication, hearsay, relevance among others. The rules are not as stringent in small claims court as they are in a true trial setting, but the rules still apply.
What Happens After a Counterclaim?
When you counter sue someone in small claims court, it’s best to know what to expect so there are no surprises. The defendant in the original lawsuit may not like the fact that you are suing them for more than what they’re suing you for; this is normal. However, if they end up winning their case, they could try to block your ability to collect on your own judgment.
The possible outcomes of a counterclaim are:
The small claims judge may: allow your counterclaim along with the original claim to proceed. The small claims judge may: take your counterclaim and your opponent’s claim under advisement. (This means the judge will have to do more research or talk to a higher authority before a decision can be made.) The judge may either dismiss one of the two claims or allow both claims to be heard together. If the judge believes that you are trying to use your counterclaim in retaliation (also called retribution), then it may be dismissed. For example, if the other party is suing you for defamation when you just made an honest mistake, the judge can choose to dismiss your claim alleging defamation on your counterclaim. Suppose you find out that you owe the other party money for a different reason? You can name them in your small claims cross complaint. For example, let’s say that a contractor is suing you to collect payment for some home renovations he did. You can name the same contractor in your counterclaim and seek damages because the renovations he did were shoddy and resulted in you losing money to fix them up properly. Of course, the other party can claim you’re being repetitively as well and the judge may very well agree. And although you are seeking out damages for the renovations, there’s no guarantee you’ll get them, even with evidence on your side.
How To Appeal
If your counterclaim is unsuccessful or perhaps you are not satisfied with the overall outcome, you have two options if you choose to appeal the decision. An appeal is a request to have a higher court to review the decision of the small claims court judge and if necessary overrule that decision.
Plaintiff’s Appeal
If the moving party is the plaintiff, they can make an appeal to the district court by either filing and serving a motion with the court clerk or verbally making an appeal after judgment is announced in court. The judge may ask for a written motion in some cases so be prepared for that eventuality. The amount of your deposit must be paid when you file your appeal. The deposit is also 150% with overpayment refunded upon an appeal, making it a lengthy process. The amount must be paid in cash, money order, cashiers check, or a debit/credit card. In most cases , the court will set down one date for trial and a few trial dates thereafter. At trial, witnesses may be called to state their versions of the story, and the judge can ask questions to clarify any issues as well.
Defendant’s Appeal
In the case that the defendant is the moving party, they can ask for an appeal after the judgment is made by talking to the court clerk within 30 days of that judgment. This can be done orally or in writing, and as with other motions, the judge may ask request a written motion. The deposit will still be required in the form of cash, money order, cashiers check, or a debit/credit card. You may want to think about whether an appeal is worth it. You have the same rights as lawyers because every person can represent themselves, and any other reason for an appeal must be compelling enough. District Courts do not like doing the same work again, wasting valuable resources including money and time of all parties involved.