Small Claims. Within each district court is a small claims department which has nonexclusive jurisdiction over cases for the recovery of money only if the amount claimed does not exceed $10,000 in cases brought by a natural person or $5,000 in all other cases. In small claims cases, formal pleadings are not required, and hearings and dispositions are conducted informally. Each party in a small claims case is usually self-represented, and attorneys are not allowed to participate unless the judge grants permission. Parties may appeal small claims judgments to the superior court, but no party may appeal a judgment where the amount claimed is less than $250, and the party who filed the claim may not appeal unless the amount claimed exceeds $1,000.
Notice of Claim. Upon filing of the claim, the court sets a time for a hearing and issues a notice of claim. The notice of claim directed to the defendant must contain:
Default Judgment. When a defendant fails to appear and plead at the time specified in the notice, a default judgment may be entered against them. If amounts of damages claimed are uncertain or other issues of fact need to be proven, the court may consider evidence to make those determinations. Unless later set aside by the court, a default judgment has the same effect as any legal judgment.
The notice of claim directed to the defendant must contain a statement advising the defendant that if the defendant fails to appear, judgment may be given against the defendant for the amount of the claim, rather than will be given.
PRO: This bill is a result of conversation with district court judges regarding issues they are facing. Current law requires notification to small claims defendants that judgment will be given against them if they do not appear. This conflicts with the actual law regarding default judgments. There are cases where it is not appropriate to issue a judgment to the plaintiff when the defendant does not appear. For instance, when the plaintiff cannot show a monetary loss they are not entitled to a judgment. This bill passed the House of Representatives with a unanimous vote in favor.