Small Claims Court How to file, win, and defend a Small Claims Court lawsuit in New York City

The following is a summary of legal best practices to follow for people who are not lawyers that seek to file a lawsuit in the small claims court in New York City. The New York State Unified Court System (NYSUCS) is the judicial branch of New York State, which provides and supervises state, city, town and village criminal and civil courts and the practice of law and electronic filing services. The Small Claims Court is designed to be a way for people to resolve simple matters involving monetary disputes, without needing a lawyer for court, which do not exceed $10,000 (as of the date of this article.)

Information about starting a small claims court case may be found on the NYSUCS website, which is always the most up to date source. The below summary will provide a checklist of items to following, which may also be found in Small Claims & Commercial Small Claims Guide provided by the NYSUCS, which is updated less regularly but the essential principles and guidelines will often generally apply and remain unchanged. Use the New York City Court Locator to find a local court that may be applicable to you and also to ask questions. Use the NYSUCS Legal and Procedural Information section and documents to prosecute your case.

Jurisdiction: Can you use Small Claims Court to solve your claim or dispute?

The Small Claims Court of New York City, like many, has certain boundaries which limit the types of cases the court can hear and the parties for which it can provide a binding judgment.

• Jurisdiction of the Court over the Type of Case. Issues involving money up to $10,000, such as non-payment on a contract or a loan. The court cannot hear or adjudicate claims that are not about money, such as assessing the amount a personal injury might be worth. If there are damages to person or property which were fixed or addressed for a certain monetary amount (such as a bill to fix a damaged car or for medical treatment), the Small Claims Court may be able to hear the case only on the issue of the money damages (the bills.)
• Jurisdiction of the Court Over the Parties. A person (age 18 or older) can sue another party (person or company) who is located within the jurisdiction of the specific Small Claims Court which you are filing. This means that "the defendant lives, works, has a place for doing business, or owns property you are/were renting (and your claim is related to your tenancy or lease) in a county corporation, association, partnership, LLC." This is critically important as the court will need to send the defendant a summons to appear in court using a local address.

Make a Good Faith Effort to Resolve the Dispute First

A court of law is a "place of last resort" - where people go after they have tried unsuccessfully to resolve disputes between themselves using direct communication. Before filing a case in Small Claims Court, you must attempt to resolve the issue directly with the defendant. Send a written demand for payment or resolution along with a reasonable time for response and satisfaction of the matter (see a sample demand letter provided by the NYSUCS.) Save copies of all correspondence and it is best to use a method that shows proof of communication (proof of mailing from the U.S. Postal Service, text message chat receipts, etc.)

Organize Your Documents

• Make sure to keep a copy of all communications (written, emails, texts, photos), relevant documents, bills, receipts, and contracts.
• Three Copies for Court: When preparing for court, always make sure to bring at least three copies of everything the court might observe. One copy should be for you, one for the court, one for your adversary (defendant, or the plaintiff if you are the defendant.)

Prepare to be Clear, Concise and Composed in Your Claim or Defense

• Timeline of Events: Creating a brief timeline often helps with the organization and clear presentation of events to explain what occurred.
• Calculation of Monetary Claim/Defense: You must explain why you are suing and the amount you are seeking, including all calculations you performed to arrive at the amount of your claim.

When the time comes to present your case to the court, always be composed and polite in your demeanor. Try to present the facts without emotion and without any insults or derogatory remarks or comments about your adversary. Doing so may leave a bad impression on a judge or jury hearing your claim.

Know and Use the Defendant's Exact Name and Address

After following the above steps, if you are unable to resolve your dispute with the defendant, you are now ready to begin filing your claim. This is a formal process which must be performed properly and accurately, or your case could be dismissed.

• Proper and Accurate Name. If you are suing a person, make best efforts to ensure that you have the proper first and last name of that person and are not using a nickname. If you are suing a company or business, use its legal name such as "Joe Johnson Coffee, Inc." and not the trade name you might see on a sign such as "Joe's Coffee." You may need to do a lookup of the business in the New York State Department of Corporations database. The company name may also be listed in a document posted in a store window, such as a food service grade.
• Accurate and Valid Address. Court papers must be served to the defendant. As such, you need a valid and complete address which, if incorrect, can result in the defendant not being served and a valid defense which may dismiss your case.

Amount in Dispute and Description (Type of Dispute)

The Small Claims Court in New York City can hear money disputes in the amount of no more than $10,000. The NYSUCS lists the most common small claims dispute types as follows:

1. Damage caused to automobiles, other personal property, real property or person.
2. Failure to provide proper repairs, services, merchandise, or goods.
3. Failure to return security, property, a deposit, or money loaned.
4. Failure to pay for services rendered, salary, an insurance claim, rent, commissions, or for goods sold and delivered.
5. Breach of lease, contract, warranty or agreement.
6. Loss of luggage, property, time from work, or use of property.
7. Bounced or stopped check.

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Where and How to File a Small Claims Court Case

• Small Claims Court Forms. A comprehensive set of Small Claims Court forms and instructions are available online.

The filing process begins with the completion of a CIV-SC-50 form - Statement of Claim form (or a CIV-SC-70 form - Statement of Claim for Commercial Claims). The form must be filed in the Small Claims Part of the Civil Court in the New York City borough where the defendant lives, works, or has a place of business. For example, if a defendant lives in Manhattan, the filing must be completed in the New York County Civil Court. You can find an applicable courthouse using the New York City Court Locator.) As mentioned above, electronic filing may not be available for Small Claims Court at this time in many New York City jurisdictions. For most circumstances, a fee of up to $20 is imposed to file.

The court clerk should provide a time and date for the hearing, including the location. The first available date may be many months away, so it is important to set expectations. You may receive confirmation details of your appearance by mail or email. In the event you do not or cannot find the date and time shortly after filing, contact the small claims court clerk.

Serve the Summons and Complaint on the Defendant

The Small Claims Court typically handles service of process via postal mail. If this process fails (for example, no such address), you may need to arrange for personal service, such as retaining a process server to hand deliver the summons and complaint to the defendant.

Prepare for Your Hearing

While there is no specific dress code required, it is important to dress appropriately, such as formally and/or professionally.

If you are the plaintiff, it is extremely important to practice your presentation to the court about your case, which you should be able to complete in under five minutes. You may want to provide an opening statement so that the court knows what the issue is primarily about, for example: "This case is about an unpaid loan of $5,000 made to the defendant on January 1, 2020 that remains outstanding."

Have your witnesses present in court and prepared to testify. If your witnesses cannot make it to court, notarized affidavits (official statements by the witness signed by a notary public) may suffice.

What Happens at Court

Arrive at the courthouse at least a half hour earlier (or more) than the hearing time listed for your hearing. There may be a long line to go through security to enter the courthouse.

Some cases may require mediation. Both parties may show up to court and be required to meet once with a mediator, as a preliminary step before proceeding to the courtroom, to determine whether an agreement can be settled without necessitating a judge.

Mediation, Arbitration and Adjournment

At the courthouse, locate the courtroom which should have been provided to you from the court when filing and receiving a court date from the court clerk. There should be a court calendar posted on the wall in front of the courtroom. Find your case on the calendar. If it does not appear, speak to the clerk when the courtroom opens, who will likely make an announcement about courtroom procedure.

In court a judge will typically hear the case. There may be an excess number of cases to hear in one evening and those which are scheduled towards the end may be adjourned for another court date. You may need to return to court one or more times if this occurs.

You may also be given an option for arbitration instead of proceeding to a judge and notice that you may need to appear several times until a judge hears your case. Arbitration is similar to a court hearing, which may take place in a courtroom or room in the courthouse which is adjudicated by an "arbitrator" who acts in similar fashion as a judge in hearing and administering the case. An arbitrator may be an attorney, professional arbitrator, or a former judge. Generally, a decision made by an arbitrator cannot be appealed, which is why it is important to understand the consequences of choosing arbitration over a court hearing. If you wish for a record to be made of the proceeding (such as an audio recording), you may need to make a special request before the hearing begins. Whether or not to choose an arbitrator - who can turn out to be better or worse than a judge - is a personal decision. However, many prefer to see a judge over leaving it to chance whether an arbitrator will be beneficial.

Court Proceedings - Hearing Your Case

If you choose to proceed in a courtroom, a formal hearing will take place, including a record made of the hearing. After the hearing is concluded, the judge may inform the parties of a decision but it is common to tell the parties that the decision will be sent in mail imminently.

While in court, always be polite, truthful and do not exaggerate as failing to do so can impact on your credibility. Do not interrupt the judge or the opposing party when they are speaking or addressing the court.

Post-Judgment Collection

A plaintiff who wins a case does not get paid automatically. The defendant will receive the decision but may not pay voluntarily. The winning plaintiff must send a demand to the defendant to pay the amount due within the date set forth in the judgment and, if not paid, may need to engage in 'enforcement' measures on the judgment. If the defendant still does not pay, the plaintiff may need to request that the court issue wage garnishment or bank account freezing and levy. If you need assistance, reach out to the small claims court clerk.