On a March afternoon at the District Court in Concord, a handful of small claims cases
came before Judge Gerald Boyle. In two cases, the parties chose mediation, an option allowing them to hash out a compromise rather than presenting their case to the judge. Two other cases—one a landlord-tenant dispute over a withheld security deposit, the other involving Rent-a-Center and a customer—included people who did not show up for the hearing. The judge issued a default judgment, an automatic ruling in favor of the side that was present. None of the cases involved amounts over $5,000. Everyone was cordial. And not once did Judge Boyle bang his gavel.
Judge Judy this is not.
But what NH’s small claims court may lack in drama, it makes up for in accessibility. Almost anyone can file a complaint—there’s no need for lawyers or even witnesses, no courtroom experience necessary and no required knowledge of the nuances of civil law. Here, everyone from contract workers and small business owners to landlords and tenants, relatives and neighbors, can seek and receive justice. “The really interesting thing about small claims is that it represents, as far as I’m concerned, almost the pristine sense of access to justice,” says Administrative Judge of the Circuit Court Edwin W. Kelly. “These are literally the disputes that arise in our community. It gives the average person a way to get into court, and through a very simple process, have their dispute resolved.”
An average of 10,000 small claims cases are filed each year in the state’s 32 court locations, the most of any civil cases in the state’s circuit court system. About 30 percent of those filings come from businesses. The rest tend to be individuals with some kind of business relationship, like a landlord and tenant or someone hired to perform a service.
The small claims system is designed to settle monetary disputes worth $7,500 or less— though that number will increase to $10,000 in July. (Cases of higher amounts can be filed in either the district division of the circuit court or in the superior court.) It is meant to be a simple, straightforward way for people to settle their cases. “In the regular court, there are a lot of rules about discovery and certain motions … that would be very complicated and confusing [for individuals]. Small claims is user friendly, with the public going in on their own without a lawyer, and they’re able to tell a judge their side of the story and hopefully get their case resolved,” says Cheryl Steinberg, director of the Senior Law Project at NH Legal Assistance in Concord.
Often, small claims cases only involve a few hundred dollars, and Kelly says he once oversaw a dispute worth $25. But as lawyer Jay Niederman of Niederman, Stanzel & Lindsey PLLC in Manchester puts it, “When a landlord doesn’t refund a security deposit, [for some] that’s small money—but when a landlord is holding $500 of your money, that’s a big deal.”
How it Works
All small claims cases begin when someone files a claim. It used to be that a complaint had to be filed by mail or in person, but late last year, all 32 district divisions moved to paperless filing and all claims must now be filed online. (People can ask to opt out of that requirement, but exceptions are only granted in extraordinary cases. Since the system went online statewide Dec. 12, only three opt-out requests have been made, all from state inmates who do not have online access, and all three were granted.) Fees range from $90 to $145, depending on the amount of money the case involves and whether the defendant makes a counter claim. Typically, the defendant has about four weeks to respond to the complaint and indicate whether he or she plans to contest the claim; once the defendant has responded, the matter will be scheduled for a pretrial hearing to be held within approximately 30 days.
The new e-filing system means people can now file their claim on “Sundays, holidays, nine o’clock at night—any time they want,” says Kelly, rather than waiting to file in person during business hours. For people who do not have a computer, they can turn to their local library or their nearest courthouse. The state installed computers at kiosks outside the clerks’ offices and provided training to librarians and clerks so they can help people e-file.
Filing involves more than simply clicking a few buttons—there are 140 questions to answer, ranging from the simple (your name, address, phone number) to the more complex (detailing the complaint, the last payment you received from the person you are filing against, the last contact you had with that person). Still, it’s not much more complicated than booking a flight online. Individuals can file on behalf of themselves or hire a lawyer to represent them. Often businesses will send a lawyer as a representative, and some individuals simply feel more comfortable having a lawyer present, says Kelly.
Along with e-filing, other measures were implemented last year to streamline the small claims process and make it less expensive for the state to run. Many of the recommendations came from a task force comprised of lawyers, judges and others who use the small claims courts frequently. The e-filing program took about two years to get off the ground, part of a statewide effort to put the entire court system online, Kelly says.
Now, defendants can choose whether to accept a partial judgment—agreeing they owe some or part of the money. If the plaintiff is willing to accept that amount, the case can be settled without going to mediation or a hearing. “Many, many of these confessions of judgment can be expedited much quicker that way,” says Kelly. The judge can also rule on minor motions quickly because they’re right on his computer rather than sitting in a paper file somewhere. Kelly says he turned on his computer last July to find that a simple motion to waive a filing fee had been e-filed 26 seconds before; he read the brief motion and ruled on it. The filer had his answer in less than one minute.
If either side wants a trial, both parties are automatically required to attend a pretrial hearing, a change that helps make sure everyone understands the process and also allows the option to try mediation. Kelly estimates that 80 to 90 percent of cases are resolved either through mediation, on their own during the pretrial hearing or by failing to appear for the pretrial hearing, in which case the judge issues the default judgment.
“You can cut through a lot of issues at those pretrial hearings and also hold a mediation on the same day, so witnesses don’t need to fly in or drive in. That saves a lot of time and money,” says attorney Kristin Lindsey, also of Niederman, Stanzel & Lindsey PLLC, who frequently files small claims cases on behalf of clients.
A recent case in Concord involved two people who arrived for a pretrial hearing, then opted for mediation, disappearing into a little room just outside the courtroom with mediator Patricia Sorofman. About 40 minutes later, they reappeared, and both plaintiff and defendant were visibly more relieved and relaxed. “A lot of times they do walk out of here pleased, even if they had just agreed to split the amount down the middle,” says Sorofman, who has been a mediator for 15 years. “Cases that the people always think they aren’t going to be able to settle usually do settle in mediation.”
During mediation, Sorofman helps both sides reach a compromise on the amount owed. The conversation sometimes gets a little heated, she says. Her strategy is to let each side vent briefly, then remind them that it’s “not a therapy session” and bring the conversation back to the money. “I tell them, ‘this is not about who is a liar or who cheated who, but to focus on the money. The only thing to decide here is who owes what’.”
Cases involving more than $5,000 are subject to mandatory mediation as a first step. Mediation is optional in cases worth less, but most people prefer to at least try it out, says Sorofman. “Mediation is less intimidating. A lot of people are scared of public speaking. The judges can be harsh-sounding. They’re afraid of the process—I’ve had people ask me if they can go to jail,” she says. “But mediation is in their hands.”
On Trial
Sometimes cases do make it all the way to trial—mediation fails, the defendant counter sues or one party just really wants his or her moment in front of the judge. A recent trial in Concord involved two men—a homeowner and a contractor—who had sued each other over a roofing job gone wrong. The homeowner claimed the contractor’s shoddy work had left him with a ruined foundation and repairs worth more than $7,500. The contractor claimed he was never paid for the original roofing work. “I finished what I was supposed to do,” the contractor declared, to which the homeowner snapped, “You walked off the job … that’s when I smelled a rat!”
Okay, so maybe there is a touch of drama in small claims court. But Judge Boyle was patient with both men, guiding them through the process, helping them to submit their respective photos as evidence, and gently intervening when one of them got off topic. (He was expected to deliver a judgment by mail within about two weeks after the trial.)
It’s not unusual for emotions in small claims courts to run high. Though many cases stem from business relationships, the situation can feel quite personal to those involved, says Sorofman. “A lot of times people just want to be heard,” she says. “Sometimes it is just about the money—but sometimes it’s never about the money. It’s the principle of it.”
Steinberg says clients often seem to think the courts will deliver some kind of emotional relief or validation, and she tries to help them see that it might not work out that way. “The thing about small claims is that all you can get in terms of relief is money, technically,” she says. “The feeling of justice they think they’re entitled to doesn’t always happen.”
Instead, she urges them to find satisfaction in the process—to be able to take the situation into their own hands and to tell their side of the story, regardless of the outcome. And that, she says, usually works out. “Being able to do that does make people feel better,” Steinberg says.
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