Austin Business Lawyer

Business Litigation Center - Small Claims and Justice Courts

Business owners often find themselves in disputes over relatively small amounts of money for which the county or state courts would be cost prohibitive and too tedious. For these situations, the small claims or the justice court is often the perfect forum. Litigants in the small claims and justice courts can and are well advised to be represented by an attorney.

Jurisdiction

In Texas, the justices of the peace preside over both the justice courts and the small claims courts. This does not mean that each justice has two separate courtrooms. Rather, the justice-small claims distinction should be considered simply as alternate procedural styles available within the same court. The litigation procedures and trial formalities that are generally respected in all state courts, including the justice courts, are relaxed in the small claims court in order to dispense speedy and inexpensive justice.

The justice courts hear both civil cases-consisting mainly of suits over debts, evictions, car accidents, unlawful towing, and property-and class C criminal misdemeanor complaints-such as traffic violations and bad checks. The small claims courts and justice courts share concurrent jurisdiction over the same class of civil claims-disputes over money where the amount claimed is not more than $5000.00. Suits in these courts cannot ask the court to order a party to perform or refrain from any action, but can only ask for monetary damages.

Advantages and Disadvantages

The small claims and justice courts are an attractive option for many business owners in cases where relatively little money is involved because a judgment can often be reached quickly and at a relatively low cost. Trials usually last no more than a few hours and little pretrial procedure usually takes place. The tradeoff for speed and inexpensiveness is that litigation is more than likely not as thorough as litigation in higher courts, and parties often forego some of the protections that are observed in higher courts. Also, no record kept in these courts, and appeals from the small claims and justice courts are heard de novo in the county courts. This means that, on appeal, a completely new trial must be conducted, and the lower court's judgment is disregarded.

Summary

The small claims and justice courts are meant to be a quick and less expensive alternative to litigation in higher courts. Business owners faced with small monetary disputes should consider how useful these courts can be. Even though many parties litigate in these courts without a lawyer, those who are represented are typically more successful. If you would like to find out more about whether litigating in the small claims or justice courts is right for your business, you should consult with an experienced Austin business lawyer.

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Centrally located in the Arboretum area of north Austin, the Slater & Kennon law firm represents clients in Travis County, Bastrop County, Burnet County, Williamson County, and Hays County, including the cities of Austin, San Marcos, Bastrop, Burnet, and Georgetown.