Is Small Claims Court for You?
If you find yourself in a situation where you need to resolve a dispute involving a relatively small amount of money or the return of goods, the Small Claims Court may be the right avenue for you. Designed to provide a quick, informal, and cost-effective method for deciding claims, the Small Claims Court offers several advantages over traditional court proceedings. In this article, we will explore the key aspects of Small Claims Court and help you determine if it’s the right option for your specific case.
What is Small Claims Court?
The Small Claims Court is a specialized court that handles claims up to $25,000 (excluding interest and costs). One of the main advantages of this court is that neither the claimant (the person making the claim) nor the defendant (the person against whom the claim is made) require legal representation. This makes the process more accessible and less intimidating for individuals seeking resolution.
Types of Claims
In the Small Claims Court, you can make a claim for the payment of money and/or the return of goods. It’s important to note that the total value of your claim cannot exceed $25,000 (excluding interest and costs). If your claim exceeds this amount, you have two options: either reduce your claim to $25,000 and proceed in Small Claims Court or initiate your case in another court with jurisdiction over your specific situation.
General Damages and Interest
When making a claim, you can also include up to $100 in general damages within the $25,000 limit. General damages cover aspects such as pain and suffering or loss of enjoyment of life. Additionally, you have the right to claim interest on top of the maximum $25,000. The calculation of interest depends on whether the claimant and defendant had an agreement specifying interest payment or if the claimant wants to claim prejudgment interest as permitted by the regulations to the Small Claims Court Act, which is calculated at a rate of 4% per year.
Costs and Fees
In Small Claims Court, you can claim costs to be paid by the defendant, which includes filing fees, costs of serving the defendant, and witness fees. However, it’s essential to remember that regardless of the outcome, you cannot request the other party to pay for your lawyer fees if you choose to hire one.
Transferring a Case from Supreme Court
In certain cases, it may be possible to transfer a case from the Supreme Court to the Small Claims Court. To qualify for this transfer, the claim must not involve general damages, the claim amount must not exceed $25,000, and the claim should fall within the jurisdiction of the Small Claims Court. If these criteria are met, you can initiate the transfer process by filling out a Notice of Election to Transfer form, available at the court administration office. A transfer fee must be paid, and copies of the notice should be served to all parties involved.
What Small Claims Court Doesn’t Cover
While Small Claims Court provides an accessible and streamlined process for resolving many types of disputes, there are some matters it does not deal with. These include ownership of land, disagreements over wills, malicious prosecution, false imprisonment, defamation (libel and slander), and claims against the provincial government. For such cases, alternative legal avenues need to be pursued.
Factors to Consider
Before deciding to proceed with a claim in Small Claims Court, it’s important to assess several factors. Firstly, consider whether you can locate the person you wish to claim against. If the person is difficult to find, it may be challenging to collect the money or goods owed. Additionally, evaluate the likelihood of collecting from the defendant in case you win the case. If the person is unemployed or self-employed, immediate collection may prove difficult, but they may have the means to pay in the future. Furthermore, ensure you have sufficient evidence to support your claim. Witnesses, bills, contracts, or letters can strengthen your case and prove crucial in establishing your position.
Cost Considerations
Before making a claim, it’s crucial to consider the associated costs. Filing fees are mandatory when submitting a claim, and the specific amount depends on the nature of the court order you are seeking. It’s advisable to consult court staff or refer to the Court of Nova Scotia website for up-to-date fee information. Serving the defendant with the claim may incur additional expenses, and if you have witnesses, you may need to cover their travel costs as well. While the adjudicator may order the defendant to pay these fees if you win, it’s important to note that the other party cannot be compelled to cover your lawyer fees. Additionally, if you are successful in your claim, you may need to take additional steps to collect the awarded amount, further adding to your costs.
Considering Mediation
Before resorting to legal action, it’s worth exploring alternative dispute resolution methods such as mediation. Mediation provides a platform for parties involved in a dispute to find their own solution, with the assistance of an impartial mediator. It offers a faster, more private process that can help preserve relationships. The Legal Information Society of Nova Scotia provides a Mediator Referral Service that you can contact to explore this option further.
In conclusion, the Small Claims Court offers a simplified and accessible process for resolving disputes involving sums up to $25,000 (excluding interest and costs). It can be a suitable choice for individuals seeking a quick and cost-effective resolution without the need for legal representation. However, it’s crucial to evaluate your specific circumstances, the feasibility of collecting from the defendant, and the strength of your evidence before deciding to proceed. Additionally, considering alternative methods such as mediation may provide an effective means of resolving the dispute.
If you need papers served or filed with the courts, Trust Process Servers can help. Email us at contact@trustprocessservers.com or call (902) 812-0811.