NYC Small Claims Court Guide By Attorney Who Has Tried over 100 Cases

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My name is Paul Matthews. I have represented individuals in the past in New York City Small Claims Court in addition to my family law and appellate practice. Although the Small Claims Court is designed to be user-friendly so that you can sue without using a lawyer, expert representation can be invaluable. For many years, the most you could recover was $5000, but the Court’s jurisdiction in New York City has recently been increased from $5000 to $10,000, which means that you should consider having a small claims attorney assist you, especially in complex cases involving litigation or testimony, where justice is at stake. These cases may become even more complicated when dealing with penalties imposed due to breaches of local laws or neighborhood disputes with a neighbor, requiring careful navigation of the legal system. The attorney general’s involvement may also play a role in ensuring the legality and fairness of proceedings in certain higher-profile cases.

However, I am no longer taking small claims cases myself.

Out of state corporations, including LLC’s, are not allowed to file lawsuits in the New York small claims courts.

You must file your small claims court case in the county where the defendant resides, works, or has an office, not where you reside. Also, you will have to come to court yourself, unless you are a corporation with an employee who has full knowledge of the facts, or an alternative form of mediation is available in a very unusual situation. It is important to prepare adequately for a hearing, especially if you decide to represent yourself. This can include drafting a thorough demand letter to initiate proceedings and potentially save on court costs by encouraging an out-of-court resolution.

If you are suing a company, that company has to have a physical location such as an office, store, factory, etc., located within the State of New York. You must sue them in the county where this physical location is located. If it is an online business with no physical location, you cannot sue them in New York State Small Claims Court.

Although in the past, none of the NYC Small Claims Courts have allowed an appearance by telephone or permitted witnesses to testify by telephone, this changed due to the COVID pandemic, and some cases are being tried via Microsoft Teams. I believe that by now, all cases are being heard in person, and you will no longer be able to appear by video or phone. You may wish to check with the court, though.

Over the last 15 years or so, I have seen many litigants go “pro se” and try to represent themselves in various courts, but I have only seen one or two out of hundreds, possibly thousands, who had the natural ability to be effective acting as their own lawyer. Proper representation often proves crucial in securing favorable outcomes, especially when handling complex matters that might involve substantial testimony or intricate legal arguments. Occasionally, the involvement of the attorney general in broader legal reforms might affect the procedures or regulations governing small claims court proceedings.

When I myself first started trying cases over 20 years ago, it took me around 3 years, and over a hundred trials and hearings, before I had even started to “get good” at trying a case. This is why it makes sense to be assisted by an experienced small claims attorney.Unfortunately, there are very few attorneys in NYC who will take a small claims case for a reasonable fee, which presents a significant problem for those seeking affordable legal assistance. You may be lucky to find one if you look hard enough. It is also sometimes possible to hire an attorney to go over your case for an hour or two and give you advice, for a reasonable fee, which can help mitigate the risk of incurring additional court costs. This strategic approach can be beneficial for both a business owner and an officer who might be involved in various legal disputes, as it allows you to tackle legal problems without breaking the bank.

Can You Go Pro se in NYC Small Claims Court?

In New York City, the small claims court is part of the civil court. During the COVID emergency, many small claims courthouses were closed to the public. It may be possible to file small claims cases online using a website called Turbo Court. They charge a small fee for their service, which is separate from any potential attorney fees you might encounter if legal representation is required. The forms required to file are very simple and straightforward, providing an accessible option for consumers seeking to resolve disputes through legal avenues. Whether you file your case by walking into the courthouse or online, it is essential that you provide the correct name and address of the defendant you are suing. An experienced advocate may offer counsel during this process, ensuring your legal rights are protected and that all necessary steps for resolution are properly followed as per applicable statutes. For an owner or an officer involved in a legal matter, understanding these steps is crucial for effectively managing disputes. Navigating these legal processes can certainly become a part of your job, as ensuring the correct documentation is critical for the case outcome.

One of the big differences between the small claims court and other New York courts is that discovery is almost never allowed in the small claims court. It is possible to get court-ordered subpoenas from the court clerk for witnesses or documents, which can be crucial in advocating for your rights. While preparing your case, the answer of the defendant plays a pivotal role in determining the direction your legal proceedings might take. An officer involved in a case may find it particularly beneficial to have such documentation at hand, allowing them to address the problem with evidence-backed arguments effectively.

Commencing A Small Claims Lawsuit

The maximum you can sue for in New York City small claims court has been raised from $5000 to $10,000. It is important to understand that you cannot recover for pain and suffering, aggravation, and the like in small claims court. I do not practice in the town and village courts in upstate New York, but I believe these courts have a lower amount (perhaps $3000 or even $1000) you can sue for. This knowledge is vital in formulating a strategy for resolution of your claims, taking into account the specific statutes governing these amounts. For an owner seeking to recover business-related damages, aligning with these financial limits is imperative, thus addressing a potential problem before it arises.

You can only recover money damages, which means money actually spent by you or a loss or damage to property which can be quantified into actual dollars. Proper counsel can assist in accurately quantifying your damages, which is essential for favorable resolution while keeping in mind any attorney fees you may incur. This is especially important for an officer managing fiduciary responsibilities and ensuring financial transparency, making it a crucial aspect of their job in mitigating legal risks.You must also prove every penny of your damages to the court unless the defendant agrees as to the amount. You also cannot get around the $10,000.00 limit by breaking your $20,000.00 case into several separate suits. This is called “splitting your claim” and is not allowed. Adequate counsel can help navigate these rules effectively to adhere to the governing statutes. An owner must be particularly vigilant to present organized and comprehensive proof, especially in business disputes where headquarters might play a role in providing essential documentation and evidence. The integrity of your presented case is crucial, particularly when cash flows and financial operations are under scrutiny.

Amount You Can Sue For In The NYC Small Claims Court

A counterclaim is when the defendant (person being sued) “retaliates” by filing his own suit against the plaintiff. The counterclaim can be either related to the main claim or unrelated. Understanding the nuances of such legal actions requires experienced advocacy to ensure your rights are upheld and that your answer to any counterclaims is strategically managed. An officer involved in a corporate setting must be prepared to handle such legal complexities with a clear strategy. A counterclaim can also be brought for up to $10,000.00. A third party claim is when the defendant believes that even if the plaintiff can prove that the defendant owes him money, the real culprit is a third party. In this situation, the defendant can bring the third party into the action by filing a third party case. The two cases will then be heard (and tried) together. Advocacy and strategic counsel can often guide you toward a favorable resolution in such complex scenarios, navigating the intertwined statutes and ensuring minimal attorney fees are incurred. Ensuring that all legal requirements are met can protect you against future complications such as the potential threat of bankruptcy due to unexpected judgments, which could severely impact your cash reserves.

Once you are in court, all NY City Small Claims Courts follow a similar procedure. The evening or day session starts with a calendar call. Before the calendar call, instructions are given, providing an organized structure essential for both consumers and legal representatives to follow during proceedings. In Queens County Small Claims Court, the instructions are repeated in Spanish. Motion calendar cases are usually called first. Awareness of these procedures ensures that your rights are effectively advocated throughout the process. Whether you’re navigating these procedures on your own or with the help of professionals, understanding the process fully can make a significant difference in avoiding unnecessary financial strains or even bankruptcy. Having a solid understanding of your cash position before engaging in legal disputes can be advantageous.

A handful of lawyers are usually present, and in some courthouses, the first row is reserved for them. Most of these lawyers represent companies like Verizon or other businesses that are constantly being sued, or they work for automobile insurance companies. These lawyers typically have 3 or 4 cases a night and will request adjournments on most or all of these. Understanding how to effectively advocate and counsel in such an environment plays a key role in the resolution of cases. In some situations, a process server or even a sheriff might play a role in delivering important documents or executing court orders, ensuring that the legal requirements are adhered to from start to finish, thus preventing financial distress. In corporate matters, the involvement of headquarters can be essential in coordinating legal response and ensuring that all cash-related implications are effectively managed.#NEW TEXT WITH ALL THE WORDS:
A motion is a formal written request to the Court for an order. The most common motions are a motion to re-open a default judgment. These motions are filed using an order to show cause; a judgment can usually be re-opened if you have a good reason why you did not show up in court, possibly related to your rights being overlooked. Effective counsel, which may include the payment of a filing fee, may help advocate for such further action, steering towards a fair resolution while ensuring compliance with legal requirements to avoid actions like bankruptcy.

Counterclaims And Third Party Actions

The second most common motion is a motion to dismiss the case because the defendant is claiming a legal defense to the case, such as the statute of limitations. Should you need help understanding the intricacies of these motions, seeking assistance from legal counsel can prove invaluable, especially when the paperwork and processes become overwhelming and compliance with legal requirements is crucial to avoid severe consequences like bankruptcy.

Almost all motions are made by lawyers or law firms. Motions are heard by the judge and are usually decided the first time your case is heard after oral argument by both sides. If you have questions about this process, obtaining information early on can greatly benefit your case preparation and ensure all requirements are met, safeguarding against potential outcomes such as bankruptcy.

Procedures Once You Get To Court

Each county has slightly different procedures. In Brooklyn County Small Claims Court, because they don’t have a room big enough to accommodate everyone, there are two separate calendar calls in two different rooms. One calendar call is for brand new cases while the other calendar call is for adjourned cases. Fortunately, the calendar calls are held at different times, but you still have to be in the right room at the right time. Gathering information about these procedures, possibly with the help of legal professionals, can prevent unnecessary confusion and ensure you are well-informed. For instance, knowing how to request copies of important court documents can streamline your experience and aid in your eventual recovery of any owed funds.

I have found that some of the court officers in Brooklyn small claims court can be somewhat rude to litigants, and I have seen some arbitrators do strange things. Brooklyn Small Claims Court does have a nice Greek diner across the street where you can get a great burger or a great danish while waiting for the Court to open. If you have questions about your court experience, discussing them over a meal there might provide a bit of relief. This casual setting might also be a good time to consider how you’ll manage the copies of any judgments for future needs.

After the motion calendar, the “regular” cases are called. In Manhattan Small Claims Court there is usually a “second call” in case someone is late.

After the motion calendar, the “regular” cases are called. In Manhattan Small Claims Court there is usually a “second call” in case someone is late. At the calendar call, both sides state whether they are ready to be heard by an arbitrator, if they wish the case to be decided by a judge, or if they wish to ask for an adjournment of the case for another night. This is called an “application”. For anyone needing help navigating these decisions, preemptive assistance from legal advisors can be crucial, especially when preparing a comprehensive packet of documents for court proceedings. Accurate and timely copies of these documents are vital for a smooth recovery process in court.

I have found that the arbitrators in Manhattan Small Claims Court are the most professional of all that I have encountered in the NYC Small Claims Court. They handle money judgments and related payments with meticulous attention to detail, ensuring that the processes for monetary recovery are well understood by all parties involved.

The Queens Small Claims Court is conveniently located in Jamaica, Queens, near the subway and also has easy parking near the courthouse. The main court room is large and well-appointed, and the court staff is excellent. Most of the arbitrators are OK. If you require any assistance regarding directions or procedures, the staff can sometimes offer help, including guidance on submitting payment records as part of your packet. Ensuring that all relevant copies of your documentation are in order is essential for your case to proceed without issues.

In all counties, there is always a great push by the Court to get the parties to agree to some kind of settlement. If that is not possible, the Court will try very hard to have the trial done by an arbitrator, and not by a judge, which can sometimes prompt questions about the fairness of this preference. Understanding these nuances, including how money judgments are formulated and how copies of these judgments play a role in your recovery plan, is crucial.

Both parties must consent before an arbitrator can hear the case. An arbitrator’s decision is final, and there is no appeal. This underscores the importance of having precise copies of all case-related documents, as these will be integral in your future recovery efforts and in maintaining a clear record of the proceedings.

Both parties must consent before an arbitrator can hear the case. An arbitrator’s decision is final and there is no appeal. However, in all of the 4 major boroughs of NYC, there are typically over a hundred cases a night, and only one judge. This means that unless the parties both agree to have the case decided by an arbitrator, they will typically have to come back a number of other times and may have to stay late each time. In such situations, help with logistical questions or legal assistance can make the process less daunting, especially when dealing with payments associated with money judgments.

Also, when the case is finally tried by the judge there is the possibility that the trial may conclude very late, possibly even close to midnight. This is why, in the end, most cases end up being tried by the arbitrator and not by the judge. If you require any assistance, don’t hesitate to ask for help, particularly when assembling a packet that includes all necessary documents.

Judges are required to give “substantial justice” but they may feel constrained to follow the letter of the law. This often raises questions about how best to approach your case. Be sure to gather all relevant information for your peace of mind. In my experience although the judges in small claims court will usually follow the rules of procedure (i.e., plaintiff goes first, then is cross-examined by the defendant, then defendant goes, then is cross-examined by the plaintiff, then parties sum up), the application of the rules of evidence still tends to be somewhat unpredictable. This unpredictability means that individuals often resort to self-help resources to better prepare themselves for court proceedings by understanding, for example, how payments are allocated in money judgments.

However, if you see a Judge, the proceeding will look more like a court of law, and less like what you see on “the people’s court” on TV. In such formal settings, the resolution of disputes often involves detailed examination of contracts and formal agreements, with a particular focus on the payments involved.

Arbitrators, on the other hand, are not constrained by any rules, neither of evidence nor of procedure, and a trial before an arbitrator can range from an orderly matter, not that different from a trial before a judge, to a virtual “free for all”. Parties involved might need to discuss payment terms and the fulfillment of specific contract clauses as part of the arbitration process.

Not knowing if the rules of evidence are going to be applied at all, or to what extent, makes the small claims court a challenging place for lawyers to practice in. As a result, many parties turn to self-help strategies to navigate these uncertainties effectively.

The most common example of a dispute you see in the small claims court involves a landlord who refuses to return all or part of a tenant’s security deposits. In order to have the best chance of winning, the tenant should have proof of the amount of the security deposit and also should have photographs of the apartment taken around the time that the tenant moved out to show the lack of damage. The best proof of the amount of deposit would either be a cancelled check or a receipt from the landlord. Payment records serve as crucial evidence in such disputes.

Most Common Types Of Small Claims Cases

Disputes between landlords and tenants

Roommates frequently fight over splitting the rent or the utilities, splitting other household expenses, and sometimes one of them moves out because the living situation has become intolerable. It may be necessary for the plaintiff to produce the roommate agreement or written contract, as well as receipts for amounts spent.

Disputes between roommates

Breach of contract cases against home repair contractors are very common. Contractors who do home repairs are subject to various laws and regulations and must have a written contract and must be licensed through the City of New York in order to do the work and to keep moneys given to them for home repair services. A clear understanding and review of the payment terms outlined in these contracts are essential for resolution.

Disputes with contractors

***Disputes over unpaid wages***

If you are an on-the-books employee, and not an independent contractor, and your employer refuses to pay you for the day or days you worked, you can potentially recover three times the amount, subject to the Small Claims $10,000 maximum. You can tell if you are an employee if social security taxes are being deducted from your checks. Engaging in self-help methods, such as gathering all relevant employment contracts and pay records, can strengthen your case.

***Automobile accident cases***

The small claims court is not allowed to order compensation for pain and suffering, although they can order a defendant to pay medical bills which are not covered by insurance. Payment of these bills may hinge on the details outlined in the insurance contracts involved.

The small claims court is not allowed to order compensation for pain and suffering, although they can order a defendant to pay medical bills which are not covered by insurance.

However cases involving property damage to automobiles (“fender benders”) are also quite common. You will need to get any police report or accident report, and if you are suing you will need to get photos of the damage to the car, as well as either a paid bill for the cost of repair or two signed estimates.

***Disputes over goods and services***

Many cases involve defective goods or services that were promised but not provided. Unfortunately, if you buy goods or services online and the defendant does not have a physical location within the state of New York, you cannot sue in small claims court.

***Decision of arbitrator or judge***

In order to avoid ugly scenes, the judge or the arbitrator will almost always “reserve decision” which means that you won’t know the outcome until you receive the decision in the mail. This is usually within a day or two.

If the decision is by a judge you have a right to appeal, but appeals are very rare as they are typically very expensive. You will have to pay around $5 a page for the transcript of the trial and will have to pay filing fees and other expenses such as the cost of legal research and printing costs in order to appeal.

In addition to these costs, you are going to need a lawyer , as it is almost impossible for a non-lawyer to navigate all of the arcane rules of the appeal process. Plus, appeals are expensive and can take a year or even more to be decided. However due to the increase of the small claims courts’ jurisdiction to $10,000.00 it is likely that there will be more appeals.

If you win your case you will get a money judgment. Money judgements are good for 20 years and earn interest. The last time I checked the rate of interest was still 9%.