What happens if I am sued in small claims court and lose?

UPDATED: Jul 17, 2023Fact Checked

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Jeffrey Johnson

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 17, 2023

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UPDATED: Jul 17, 2023Fact Checked

If you lose in small claims court and as a result the other party has a small claims court judgment against you, you do have the right to appeal the decision. Your notice of appeal must be in writing and must be filed within a certain time period, generally thirty days. Since you did not have the right to a jury in small claims court, your appeal is considered “de novo.” You will then be able to try the case all over again before a higher court, such as a Court of Common Pleas or Superior Court where you can have a jury trial if you want one.

Appeals Prerequisities to Appeal a Small Claims Court Judgment

In some jurisdictions before the case can go to trial in the higher court, however, it must first go through the arbitration process. At an informal hearing, a panel of arbitrators, usually lawyers, will hear the evidence and come to a resolution of the issues. In these jurisdictions, you can only appeal to a higher court if you lose before the arbitrators.

Time Limit for Appeals

If you have not appealed within the appropriate time period, the judgment will become final. You then have the option of settling the matter by satisfying or paying the judgment. If you do, the plaintiff should file a satisfaction of judgment notice with the court; this will effectively end the case.

Consequences of a Small Claims Court Judgment Against You

If you do not satisfy the judgment, the plaintiff can then try to execute it by filing a written notice of his intent with the court. Once this is done, the court will issue a writ of execution instructing a court official such as a Sheriff to seize property belonging to you and sell it to satisfy the judgment. A lien can also be placed against any real estate. The proceeds of any sale of real estate can be used to satisfy any outstanding judgments.

Having a judgment against you is a serious matter. It can affect your credit and your lifestyle. If a judgment has been issued against you, go to a lawyer and talk the matter over.  S/he can advise you on any options you may have to deal with it.

Case Studies: Small Claims Court Judgments

Case Study 1: Unsuccessful Appeal

In this case study, Jane loses a small claims court case and decides to appeal the decision. However, her appeal is unsuccessful, and the judgment against her is upheld. As a result, Jane must comply with the small claims court judgment and satisfy the judgment by paying the amount awarded to the plaintiff.

Case Study 2: Arbitration Requirement

In this case study, Michael loses a small claims court case and wishes to appeal the decision. However, in his jurisdiction, appeals must go through an arbitration process before reaching a higher court. Michael participates in the arbitration hearing but is once again unsuccessful. As a result, he cannot proceed with the appeal and must comply with the small claims court judgment.

Case Study 3: Failure to Appeal in Time

In this case study, Sarah loses a small claims court case but fails to file an appeal within the designated time period. As a result, the judgment becomes final, and Sarah must satisfy the judgment by paying the amount owed to the plaintiff. If she fails to do so, the plaintiff can seek enforcement through measures such as seizing property or placing a lien on real estate.

Case Study 4: Consequences of Unsatisfied Judgment

In this case study, David loses a small claims court case and refuses to satisfy the judgment. As a result, the plaintiff seeks enforcement by filing a notice of intent and obtaining a writ of execution. A court official, such as a Sheriff, seizes David’s property and sells it to satisfy the judgment. The judgment against David can negatively impact his credit and overall lifestyle.

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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