North Carolina Small Claims Court

What Is a Small Claims Court in North Carolina?

Small Claims Courts in North Carolina are courts with judicial authorities over small civil cases. Most times, these legal actions involve disputes over money or parties seeking compensation over injuries or damages. Following the provisions of the North Carolina General Statutes Article 19, the amount for compensation must not exceed a total of $10,000. However, the limit in some counties varies from $5,000 to $10,000. In North Carolina, the Small Claims Court is not a free-standing judicial institution; it is rather a division under the District Court. The Small Claims Courts have the power to sit and decide the following cases:

• Loan repayment
• Breach of contracts
• Defamation claims
• Product liability
• Wrongful arrests
• Recovery of personal property
• Removal of a tenant from a landlord’s property
• Enforcement of mechanic liens for service and storage of motor vehicles
• Personal injury claims
• Debt collection
• Security deposit disputes

How do North Carolina Small Claims Court Work?

The judicial proceedings at the Small Claims Courts in North Carolina are affordable and straightforward. Headed by magistrates, the level of formality in the Small Claims Courts is lax compared to other courts in the judicial system. Litigants in small claims cases may choose to get a legal representative, although petitioners may handle the court processes personally. In the court, the person suing is the plaintiff, while the defendant is the party who receives and responds to the suit.

Any infringed individual above the age of eighteen may sue in a Small Claims Court provided the claim is not above the county’s limit. The party files the legal action with appropriate jurisdiction. Businesses, companies, corporations, and registered organizations may file for claims of the same amount as individuals.

A litigant is eligible to file more than one claim at a go if the amount in compensation falls into the value bracket set by the county for such action. That means the plaintiff must break down the claim amount into bits. Furthermore, both parties in the suit must obey the verdict of the Small Claims Court, and after a judgment, there is a 30-day window to file an appeal.

If the losing party does not file the Notice of Appeal within the valid period, the entity that won the case may collect the claim. However, if an entity files an appeal, the court reviews the appeal, decides its credibility, and holds a new trial. The plaintiff and the defendant must start the case from scratch, present their evidence, provide witnesses’ accounts and attend hearings all over again. The District Court or the Supreme Court hears appeals of a small claims case, and it usually involves a new judge and attorney as the impending ruling becomes the final.

How to Take Someone To Small Claims Court in North Carolina

A plaintiff may take someone to a Small Claims Court in North Carolina by filing a case in the county where the defendant lives. To file a complaint, petitioners must visit the Clerk of Court’s Office to complete the necessary forms and submit them correctly. The complainant must file a Complaint for Money Owed form if the claim is to recover money, a Complaint to Recover Possession of Personal Property form for a claim involving personal property, or a Complaint In Summary Ejectment form for an eviction case. On the form, the plaintiff must fill out the prominent details of the case and give answers to what transpired.

If the complaint involves two or three parties answering the case, the plaintiff must diligently state the defendants’ names and aliases (if available). For example, if a party employed the services of a mechanic and the individual failed to deliver as promised, the car owner should sue both the mechanic and the company the car repairer works for. When the complainant wins the case, it might be easier to collect the claim.

In addition, when completing the claim, the plaintiff must provide the current address of the defendant. By stating the place of residence, serving the defendant a notice of the legal action becomes easier. The petition is only valid when the plaintiff pays the filing fee set by the Clerk of Court, which is $96 in most counties. The party must also pay an additional $30 fee to cover the cost of serving the accused person. The process of service is often by mail, through professional process servers, or via the county Sheriff in the county where the defendant is domiciled.

Before hearing, the litigants in the case must ensure to gather information and evidence such as police reports, photographs, camera footage, witness accounts, and other data that may be advantageous to their claim. At the hearing, the magistrate listens to both sides and enters a judgment based on the evidence the petition and the accused party present. Afterward, the court records the verdict, and each party involved in the case gets a copy. If the plaintiff wins the case, the party can move to collect the amount and the court cost from the defendant.

Generally, the defendant may choose to appeal the final judgment if the court does not rule in favor of the entity. Also, a plaintiff may file an appeal if the defendant files a counterclaim and wins or the final judgment of the Small Claims Court is not in their favor.

How Much Can You Sue For in North Carolina Small Claims Court?

The maximum amount of money a plaintiff may file in a small claims case differs by county. Usually, a Small Claims Court settles disputes with cash or property ranging from $5,000 to $10,000. The petitioner files the case at the District Court, and a trial holds after one month of filing. In addition to eviction cases, Small Claims Courts are also commonly used to enforce motor vehicle liens. The North Carolina Small Claims Court does not accept civil matters such as criminal offenses, traffic tickets, and child support issues.

How to Defend Yourself in North Carolina Small Claims Court

Defendants in Small Claims Court lawsuits must take the claim seriously when they get notices from the court. However, accused persons have 30 days to file written or oral responses to the claims with the courts. Before the hearing date, the defendant needs to prepare how to answer in court by performing the following actions;

1. Gather all the evidence or documents such as receipts, letters, photos, leases, canceled checks, contracts, and ledgers, that prove innocence.
2. Contact witnesses with first-hand knowledge of the case, including friends, family members, strangers, and even children. A defendant may request that a Sheriff deliver a subpoena if a witness fails to appear in court or cannot get off work for the trial.
3. An accused party may prepare for likely questions the claimant and judge might ask in court in advance. Make sure to briefly and clearly explain the most vital points when the chances arrive.
4. It is also possible for a defendant to file a counterclaim to refute a claim by the plaintiff. A counterclaim is usually served via the Sheriff or certified mail.

How Long Do You Have to Take Someone to Small Claims Court in North Carolina?

For small claims in North Carolina, the statute of limitations may vary depending on the circumstances surrounding the case. The limitation period begins when the claimant becomes aware or ought to have reasonably become aware of the damage or injury. These are the statutes of limitation for various case types:

• Damages to real property such as a house or land or destruction to vehicles must be filed within three years.
• A personal injury case must be filed within three years.
• Cases involving oral and written contracts must be brought to court within three years.

However, various factors may impact North Carolina’s statute of limitations and its calculation. If, for example, the person who is alleged to have caused the damage leaves North Carolina before the complaint files a lawsuit, the absence is not considered part of the three-year limit for filing the suit. In addition, special rules may apply if the property owner was under the age of 18 or was declared mentally ill or demented at the time of the damage.

What Happens if You Don’t Show up for Small Claims Court in North Carolina?

When the entity answering the legal action refuses to appear in court for the trial, the trial holds, and the court’s ruling favors the plaintiff. That is, the presiding judge pronounces a default judgment in the absence of the defendant. In tally with Rule 4 of the North Carolina Rules of Civil Procedure, before a trial begins, relevant authority in the locality where the defendant stays must receive the complaint and a summons. Hence, the Sheriff or an authorized person serves the documents to the accused party.

The service aims to inform the defendant of the suit and help the party design possible responses to the action. However, a defendant who did not show up for the trial may file a Motion To Set Aside A judgment to reverse the automatic verdict at the Clerk’s Office and pay the filing fee. The judge in the Small Claims Court has the jurisdiction to approve the motion or disregard it. Usually, the grounds to vacate the ruling is to prove that:

• There are clerical mistakes in the order.
• There is newly found evidence that was not presented at the time of the trial.
• The claim is fraudulent.

According to Rule 60 of the North Carolina Legislation, the defendant has up to one year after the judgment was entered to file the Motion To Set Aside A Judgment. After filing, the clerk schedules a date for the court to sit and hear the action. In the proceedings, the judge assesses the basis for missing the trial and may decide to vacate the judgment or sustain it. If the judge respects the motion, the court re-assumes the case, and a new trial holds. If not, the defending party may proceed to file an appeal.

The Notice of Appeal also goes through levels of cross-checking, and it may be declined or honored. Approving the appeal provides the defendant a new trial, and a decline means that the defendant must pay the claims in the verdict.

What are Small Claims Court Records in North Carolina?

North Carolina Small Claims Court records include information about small claims cases and are managed by the Court Clerk. To ensure transparency, the state enacted the Public Records Law, which gives the general public the right to access and request public records managed by government agencies. This provides the grounds for credit reporting agencies to ask and reflect small claims judgments on credit reports. Usually, Small Claims Court records show the outcome of cases, the parties involved in these litigations, and the amount of money set as claims.

Where can I find North Carolina Small Claims Court Records?

In North Carolina, Court Clerks in the District Courts keep Small Claims Court records and grant access to these files upon request. Therefore, interested persons may apply to the District Court’s Clerk Office to retrieve documents of small claims cases. Requesters may also find the location of local courthouses using the court directory. All the same, persons may obtain Small Claims Court files and other North Carolina court records by using the service of well-known third-party sites. These providers give interested seekers the option to carry out searches according to city, county, and the names of the litigants involved in the suit.