What is Small Claims Court?
by: MLSC Palau
WHAT IS SMALL CLAIMS COURT
It is important to remember that a dispute taken to court will be decided according to fairly strict rules of procedure. Attorneys and trial counselors are trained in these rules and all parties must follow them. For instance, there are time limits placed on the parties to do certain things. If the time limits are not obeyed, the judge can take action against the party at fault. This will be discussed in more detail in the next program. All the parties in court must know the rules and follow them . There is a procedure, however, where the court and evidence rules are somewhat relaxed. This is called small claims procedure.
The small claims procedure takes place in the Common Pleas Court for the Republic of Palau. Any civil action involving claims of $3,000.00 or less can be handled through this procedure. Frequently you do not need a lawyer or trial counselor to go to small claims court. In fact, the parties are encouraged to handle their small claims personally without counsel and many times the judge and clerk will aid the parties in doing this.
The procedure in small claims court is relatively simple. It is designed to handle the claims swiftly and fairly with a minimum of paper-work and formal rules. Rule of the Palau Rules of Civil Procedure describe the steps that should be taken in small claims.
First the plaintiff, the person who wants to file the complaint, should explain the claim and the amount in controversy to the court's clerk. The clerk will then write down the claim briefly on a docket card and have the plaintiff sign it. This written complaint will be the only written document necessary to conduct the case, unless the judge for some reason decides otherwise.
The court will then issue a small claims' summons in duplicate to the plaintiff. One of these must be given to or "served" on the defendant. The defendant is the person against whom the plaintiff is making the claim. The other copy is returned to the court with the date of service written on it.
The summons will state the date and the time the parties will appear in court. It is important that the parties both appear on the trial date. If the plaintiff does not appear, the claim may be dismissed or the defendant may, with the court's permission, proceed to trial on the merits. If the defendant has been properly served and does not appear, the court may issue a default judgement against him which means the defendant loses the case. If neither party appears, the court may, in its discretion, dismiss the claim.
Before the trial the judge will ask the defendant what his position is with regard to the plaintiff's claim and this will be written on the docket card. The judge will then try to get the parties to reach a settlement and resolve their dispute without a trial. If a settlement or agreement cannot be reached, the judge will try to simplify the issues to be decided at trial. The trial will be conducted in an informal manner in order to reach a fair result as soon as is practical. Either party may bring witnesses to offer sworn testimony but the court will not be bound by the usual rules of procedure or evidence except for those relating to privileged communication and the right against self incrimination.
The judge will do most of the questioning and will eventually determine how much money is due and enter this amount on the docket card. The court will also determine how soon this amount will be paid and whether either party wants an order in aid of judgment. An order in aid of judgment is a method by which the court determines if and when the losing party can pay the amount awarded by the court.
Thus the small claims procedure is a fast, efficient way to resolve disputes involving relatively minor sums of money. It eliminates many of the costly and length procedures an legal documents commonly associated with larger claims. Either party to a small claims judgment, however, may have a new trial in the same court according to the usual trial procedure for larger claims, simply by filing a request for a new trial within thirty days after the small claims judgment.
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