Corporate Lawyer Wausau: Wisconsin Small Claims Limits Raised

 In Business & Corporate

Wisconsin’s 2011-2013 biennial budget bill increases the amount for which one may sue in Small Claims Court from $5,000 or less to $10,000 or less.  The new, higher jurisdictional amount applies to civil actions (a) for money judgments; (b) for garnishment or most attachments; or (c) to enforce a lien upon movable assets. In addition, eviction actions are always filed in Small Claims Court, and are not subject to the dollar limitation.

Corporate Lawyer Wausau Commentary:

For business owners, this means a few things:

  • It is easier to sue. The filing fee in Small Claims Court is $94.50, as compared to $265.50 a large civil claim, making the decision to pursue a judgment easier from an economic standpoint.  More importantly, navigating your way through a small claims case is much easier than handling a large civil claim.  Small Claims Court is very informal, and in most counties, your matter will be heard by a Court Commissioner rather than a Judge (although either party can challenge the Court Commissioner’s decision within the applicable time limits and have the case heard by a judge or jury).  Procedural and evidentiary rules are not strictly enforced, and the Court Commissioner will typically help identify the issues.  Further, business entities are typically permitted to have a non-lawyer (such as an owner or agent) represent the business in Small Claims Court.  This is not always the case in large claims, where a business entity may be required to have an attorney.
  • It is easier to be sued. For all of the reasons stated above, business may find themselves defending more lawsuits as well.
  • There is less incentive to take a reduced amount to settle accounts under $10,000. Previously, an account for $6,000-7,000 might be settled for $5,000, simply because suing for the full sum due was not worth the cost, time and hassle required to file a large civil claim.  Raising the jurisdictional amount from $5,000 to $10,000 may provide a disincentive to make such reductions.

The $10,000 limit does not apply to third-party complaints, personal injury claims or tort claims, which remain at the current $5,000 or less limit.  The law will also permit the State of Wisconsin to pay claims of up to $10,000 without legislative approval.  The new law applies to small claims actions filed on or after July 1, 2011.

Corporate Lawyer Wausau

Corporate Lawyer WausauContact Info: If you are filing a lawsuit, or are being sued, call a corporate lawyer Wausau for a consultation.  Get more information about small claims procedure in Wisconsin. Learn more about corporate lawyer Wausau. If you have questions about business formation, LLPs, the purchase or sale of a business, or a business dispute, call a corporate lawyer Wausau at our law office for a consultation. Call 715.843.6700 to speak with a corporate lawyer Wausau. Corporate lawyer Wausau serving businesses throughout north central Wisconsin.

Corporate Lawyer Wausau

Eaton Law, LLP
513 Grant Street
Wausau, WI  54403
715.843.6700

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