Written by lawyers, edited to be simple to understand
When you enter into an agreement with another person or business, whether you did so formally in writing or informally through a handshake, a text or an email, if the other party doesn’t do what they agreed to do, you have a right to expect them to compensate you for your losses.
Here are just a few examples of a broken promise or a breach of contract (both of which are valid small claims cases):
- A person or business didn’t pay you for certain items -or-
- A person or business didn’t pay you for a project you completed -or-
- A person or business performed poorly on a project that you paid them for -or- • A person or business didn’t perform a service they promised they would
It is wise to try to resolve your dispute out of court, so your first attempt to recover what you’re owed should be a simple request to the other party. As you probably know, this doesn’t work all that often. Thus for relatively minor breach of contract or broken promise claims, small claims court might be your best option. In the past, this meant attempting to navigate the filing process and court system alone.
Those days are over. Small claims court is no longer a last-ditch option for frustrated parties who have tried numerous ways to get what they’re owed. It is now a powerful route that can be accessed in minutes on Swiftclaim.
We’ve created this guide for you to help you get what you’re owed when your contracting partner or the person who made you the promise didn’t do what they said they’d do.
IS SMALL CLAIMS COURT RIGHT FOR MY BREACH OF CONTRACT OR BROKEN PROMISE CLAIM?
When your damages are relatively minor, you can resolve your claim on your own. It’s important to know what your claim is worth to choose the best option for your circumstances. Small claims court might be right for you when:
- Your damages resulting from the other party’s breach of contract/broken promise are within the small claims court limits for your state
- You’re comfortable explaining your case to the judge in a brief hearing on the issue.
The small claims process starts the day the lawsuit is filed and ends when the judge decides who wins, but there are important aspects of your case to consider upfront.
What You Won’t Get in Small Claims Court
Recovery for breach of contract or broken promise claims is permitted in all small claims courts, but you won’t be awarded “non-monetary losses” (asking the court to require the other party to do require the other party to perform a service).
Small claims court is all about settling money disputes, so you won’t get the judge to order the other party to do what they promised to do under the contract – you’ll just get a monetary sum to enable you to fix the situation yourself.
Don’t expect to stroll out of court with a check in hand. If you win your small claims case, you will be awarded a “judgment” against the party you sued.
Once you win, you will have to “enforce the judgment” by taking further action, such as:
- Formally asking the other person to pay you
- Agreeing to accept a payment plan
- Garnishing the person’s wages
- Placing a lien on the person’s property
Many state courts have departments set up to help with enforcing judgments. Attorneys can assist as well. Swiftclaim will roll out its enforcement feature in early Winter 2021-Spring 2022 and you’ll be able to choose whether you want to enforce all through the Swiftclaim platform.
Terminology
It helps to know some legal terms used in court cases:
- The Plaintiff is the party filing the lawsuit. You are the plaintiff, even if an attorney files the case for you.
- The Defendant is the party you are suing who caused you harm. Breach of contract or broken promise lawsuits are filed against the breaching party.
- The Complaint, also called the Petition, is the document filed to begin a lawsuit. You will state the reason for the lawsuit, whom you are suing, and the amount of money you’re seeking.
- Service of Process is the way the defendant is notified of the lawsuit. Each state’s court will have rules and instructions.
- The Judgment is the judge’s final decision about your case.
Many states have official “Small Claims Courts.” Others hear these cases in Municipal Courts, City Courts, or Justice of the Peace Courts. The name depends on your state and the types of cases that are heard.
Traditionally, plaintiffs were required to research and find the right small claims court, depending upon several factors. On Swiftclaim, your jurisdictional optimization is done automatically through Swiftclaim. You’re guaranteed to sue the right person or business in the right court in the right jurisdiction.
Small Claims Court Limits by State
The basics of small claims lawsuits are similar across the country, but the specific procedures vary, so historically, plaintiffs would need to check their county court’s requirements carefully.
Today, with Swiftclaim’s jurisdiction optimization, just answer basic questions in the platform and you can be sure that your filing will be done right. When you’re asked how much you’re owed, enter the figure, and Swiftclaim will automatically let you know if the amount you’re seeking is within the limit for your jurisdiction. If it’s not, you can waive the excess amount and just sue for the maximum through Swiftclaim (or hire an attorney to sue outside of small claims court).