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Need to utilize a Small Claims court? Read This Article
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If you’re like most people, just the thought of going to court makes you cringe. Understandably so. But with industry profit margins in the 6 to 10% range, successful transportation companies have to learn to use every possible procedure and technique for collecting on overdue accounts.
All too often, after numerous phone calls, letters, and even sometimes the not-recommended personal visit, people tend to just forget about these problems and move on, which is exactly why we have so many slow or no-pay companies and scam artists working the industry in the first place. The majority of us who are owed money are owed less than $5,000 per occurrence making it seem difficult to pursue legal action. After all, you’ve already spent a lot of time on this problem, and you may ask yourself if it’s worth it to put any more effort into trying to collect. It’s frustrating! But don’t let this frustration translate into selling yourself short.
Below are some problem techniques that will make most slow or no-pay companies think very hard about giving you the brush-off. When you file a small claims case and send the local sheriff out to serve the papers, it tends to get their attention. Most of the time, you can get this done for less than $50.00 depending on where the company is located.
Here are some helpful ideas:
1. Compile as much information as you can on the company that owes you money - it may be helpful later on. First, try the Freightjail.com database to get basic details such as full company name, address, phone number, etc. Another source that works well is the search engine at www.google.com. Try typing in the company name, owner’s name, phone and fax number, as well as email address or any other information you have. You may be surprised at the results you get.
2. Locate the county small claims office.
3. Fill out the county’s forms, either on line or call them to obtain small claims forms and feel free to ask them for the small claims legal advisor’s phone number. Many counties offer this service free! We have found most small claims offices to be very accommodating and helpful.
4. Spend the extra $25 to $50 to have the sheriff serve the court papers on the defendant.
5. Now you can relax and wait.
When you file a small claims case, you are basically forcing a “checkmate”. The slow or no-pay company has a uniformed officer and his car on their doorstep, which is likely to draw attention from every direction. He is going to be served with papers that basically say, “pay up or go to court in 30 days and have a judgement placed against you.” Hopefully, this makes your debtor settle with you before the 30 days is up to avoid the whole confrontation. If you do collect, remember to fill out the form to notify the court your claim has been settled or you might generate some problems of your own.
Additional Information
Depending on state and county laws, small claims cases are limited to a maximum of $2,000 to $25,000. Be sure to check below to find your state’s maximum.
If the defendant does not respond, you will need to have either yourself or a company spokesman in court on the date assigned. Small claims courts are much more informal than other types of courts. You will be asked to tell your story and show anything you may have to show that the defendant owes you the money you are claiming. If the defendant does not come to court, you will win by default.
Fact: Dishonest people do not like police officers coming to their business location and they do no like appearing in courtrooms and generally they will pay your bill to avoid them.
The number next to the State name reflects the limit set for small claims cases. Claims for amounts that are over this limit may not be tried in small claims court.
Alabama $3,000
Alaska $7,500
Arizona $2,500
Arkansas $5,000
California $5,000 (Can’t file a claim over $2,500 more than twice a year. The limit for suits involving a surety company or licensed contractor is $4,000.) Colorado $7,500
Connecticut $3,500
Delaware $15,000
District of Columbia $5,000
Florida $5,000
Georgia $15,000
Hawaii $3,500
Idaho $4,000
Illinois $5,000
Indiana $3,000 ($6,000 in Marion and Allen County)
Iowa $4,000
Kansas $1,800
Kentucky $1,500
Louisiana $3,000
Maine $4,500
Maryland $2,500
Massachusetts $2,000
Michigan $3,000
Minnesota $7,500
Mississippi $2,500
Missouri $3,000
Montana $3,000
Nebraska $2,400
Nevada $5,000
New Hampshire $5,000
New Jersey $2,000
New Mexico $7,500
New York $3,000
North Carolina $4,000
North Dakota $5,000
Ohio $3,000
Oklahoma $4,500
Oregon $5,000
Pennsylvania $8,000
Rhode Island $1,500
South Carolina $7,500
South Dakota $8,000
Tennessee $15,000, $25,000 in both Shelby and Anderson county.
Texas $5,000
Utah $5,000
Vermont $3,500
Virginia $1,000
Washington $4,000
West Virginia $5,000
Wisconsin $5000
Wyoming $3,000
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