How Small Claims Court Works in New Jersey

Small Claims Court in New Jersey is a feasible option for residents with a financial dispute seeking affordable and efficient resolution without hiring an attorney or going through a complex legal process.

This guide will walk you through filing a small claim in New Jersey and help you navigate the system easily and confidently. So, whether you’re dealing with a business or an individual, keep reading to learn how to resolve your dispute.

The maximum amount a New Jersey Small Claims Court can award is capped at $5,000, meaning the court has the authority to preside over cases involving a $5,000 or lower small claims court limit.

However, if the amount you seek to recover falls between $5,000 and $20,000, filing your lawsuit in the Special Civil Part Court is appropriate. The Law Division of the Superior Court handles claims that exceed $20,000.

Before initiating a small claims case, learning about small claims rules in New Jersey is important. This guide provides information about how to file a small claims case. For additional information, you can find the small claims court rules on the official website of the New Jersey courts.

Nature of Small Claims Handled

The types of disputes handled include:

• Breach of contract: A dispute arising from an agreement between two parties, where one party has failed to fulfill their obligations under the contract.

• Property damage: A dispute where one party has caused damage to the property of another party.

• Consumer complaints: A dispute between a consumer and a business, such as a dispute over a faulty product or service.

• Landlord-tenant disputes: A dispute between a landlord and a tenant, such as a dispute over rent or damages to a rental property.

Demand Letter

Before you file a small claim, you should send the defendant a demand letter. It is crucial to make the demand letter explicit in outlining the type of disagreement, the amount of compensation sought, and a specific deadline by which the defendant must respond.

If you require help writing a demand letter, JusticeDirect will be handy in helping you generate one tailored to your circumstances.

Should the defendant opt not to respond or decline to make payment, you can initiate the legal process of filing your claim.

Time Limitation When Filing a Small Claim

In New Jersey, the statute of limitations is a deadline by which you must take legal action, or else you lose the right to file the lawsuit, possibly forever. The time frame for filing many small claim cases, including claims for breach of contract and property damage, is six years.

To initiate a small claims case in New Jersey, the plaintiff must file a complaint with the court in the county where the defendant resides or if the defendant is a business where the business resides. If the defendant does not live or do business in New Jersey, you must file the complaint where the incident occurred.

The plaintiff must provide their full legal name, address, phone number, the defendant’s information, and a short statement explaining the reason for the lawsuit.

The plaintiff must also fill out a summons form to notify the defendant of the case. Both forms can be obtained from the court’s clerk or online on the New Jersey Judiciary website.

Court Fees

Small Claims Courts can provide an economical resolution for disputes involving small sums of money because the filing fees to sue are reasonably low.

When filing a legal claim, the fee to sue a single defendant is $42, including the filing and service fees. The cost to sue each additional defendant is $12, including the filing and service fees.

Serving the Defendant

After you file the complaint and summons with the court, the court will serve the defendant by either mailing or delivering the filings.

The Court Hearing

The court will schedule a hearing after you file your papers with the court. At the hearing, both parties will have an opportunity to present their case and provide evidence. The judge will then make a decision based on the evidence presented. If the defendant fails to appear in court, the court may find that they are in default, and you will win the case.

Enforcing the Judgment

If you win the case, the court will issue a judgment in your favor. However, it is your responsibility to collect the damages awarded. If the defendant refuses to pay, you may need to take additional steps to enforce the judgment, such as offering the defendant a payment plan, garnishing wages, or placing a lien on the property.

If you need more information about Small Claims Courts in New Jersey, you can visit the official website of the New Jersey courts. You can also contact the small claims division of the court where you plan to file your claim. They can provide information on the rules, procedures, and fees in New Jersey.