With rising small claims court dollar limits, small claims court has emerged as an arena increasingly being used to resolve business issues cheaply and quickly. Business owners depend on many people including suppliers, subcontractors and consumers to run their business smoothly. Unfortunately, any of them can create troubles for the business owners. The entrepreneurs can make good use of small claims court in either of two ways – to resolve disputes with other businesses or customers or to collect unpaid bills.
If you are a small business owner and need help to bring a lawsuit against someone you think responsible for the dispute, consult with a skilled Las Vegas commercial litigation attorney for what steps need to be taken.
Resolving Issues in Small Claims Court
Contractual disputes between a business and its custom or between two small businesses are very common in small claims court. The common arguments put forth by the plaintiff are about poor quality of goods and/or services or late delivery.
If the parties fail to curve out a solution through negotiation or mediation, each of them is entitled to defend their own arguments to a small claim court judge. A well-organized and concise presentation at the court is very important. In close cases, there is a high chance for the well-prepared side to enjoy an edge over the opponent on strength of their most impressive presentation and convincing evidences.
After both parties present their own side of story, the judge will evaluate everything to come to a decision. Regular court cases are dragged for months and that is quite annoying for both parties, especially the one who is not at fault. However, good news is the judge will give an on-spot decision or mail it in few days. Both sides will, either way, get to know about their current standing and return to their own business.
Collecting Overdue Bills in Small Claims Court
Overdue bills often become a big source of contention between two businesses or a business and its customers. Even lots of legwork and constant persuasion fail to bury the disputes as no common point of agreement is reached. In such cases, small claims court is a wonderful solution; it is cost-excellent and time-saving as well. This is simply because, small claims court eliminates the need of involving bill collectors as well as lawyers. The attorneys as well as lawyers often demand half of what they manage to collect.
The fact that 60% of small claims court cases are filed by entrepreneurs speaks volume for effectiveness of small claims court. A significant percentage of such claims are not contested by the defendant as they know they are defaulters and so don’t show up. Therefore, it takes little preparation or less court time to resolve the issue. What is more, many defendants don’t want to see their credit score damaged and so pay willingly, sometimes between when they get a final demand letter warning a small claims suit and the day a court judgement is invoked.
If defendants are convinced that they have a strong defense to fight back, they have a high chance of winning the case or at least of ending up paying less than what is claimed by the plaintiffs.