To sue a company in the small claims court is very tricky, but it can be easy and efficient if you know the best ways to file a lawsuit against a company.
Every year, thousands of people file lawsuits against companies, including breach of contract, employment law violations, product liability, personal injury, intellectual property infringement, consumer protection violations, antitrust violations, environmental law violations, unpaid debt or collections, class action lawsuits, etc. U.S. federal courts received over 350,000 civil cases in 2023; 60% of them were against companies.
In this article, we will discuss the possible best ways to file a lawsuit against companies. At the end of the article, you will be able to understand the right legal steps to dispute the companies.
Quick Facts
- You can sue for: Your options to sue the company include breach of contract, fraud, negligence, discrimination, or defects in products that caused harm.
- Small claims court limits: Each state sets a different range for small claims cases, which normally starts at $5,000 and goes up to $25,000.
- Lawyer required? You should hire legal counsel to represent you when dealing with complex matters or expensive claims.
- Identify the correct legal entity: The Secretary of State in your state operates a business search tool that enables you to properly name your company.
- Proper service is required: Legal notification of the company through proper service becomes a prerequisite for the court to continue with the case.
- Filing fees: Typically range from $30 to $400. Businesses can access fee waivers based on their income levels.
- Importance of written proof: Judges base their decision-making on actual documentation instead of relying on verbal testimonies.
- Statute of limitations: Each state sets its time restrictions, which typically span 1 to 6 years during the claim process.
- Winning doesn’t guarantee payment: To enforce the judgment, you will need to use wage garnishment or property liens.
- Alternatives to suing: The alternative solutions include either choosing mediation or arbitration, or submitting a complaint to an appropriate governing body.
Process: How do you Go About Suing a Company?
The following are the main steps to sue a company:
Step 1: Try to Resolve the Issue First
First of all, you must try to resolve the issue directly by contacting the company. You must explain the problem to them and request compensation. This is a good idea to send the Demand Letter, which must be professionally written and well-explained. Most companies give responses to you as they are concerned about the reputation of the company and avoid court matters.
Step 2: Determine if You Have a Valid Claim
You need to analyze the claim you are facing and want to resolve it. Your claim must be valid, and invalid claims are not heard by courts. Generally, you can file a lawsuit against a company like;
- breach of contract
- employment law violations
- product liability, personal injury
- intellectual property infringement
- consumer protection violations
- antitrust violations
- environmental law violations
- unpaid debt or collections
- Class action lawsuits, etc.
Gather necessary documentation and evidence. Collecting and organizing the proper documentation and evidence is the main part of the lawsuit. You may need the following types of documents:
- medical records
- emails
- contracts
- receipts
- warranties
- any type of record
This is essential to maintain the records to prove the wrongdoings of the company.
Step 3: File a Complaint or Petition in Court
After examining your case and collecting the required documentation, you need to prepare to file the petition in the best court. This petition must describe all the details of your case.
Decide Where to File Your Case
If your claim limit is around $2,500–$10,000, small claims court is the best way to sue a company. To sue in small claims court, you are not required to hire a Small Claims Case. Small claims courts are designed to solve minor disputes in a faster and efficient way. These courts offer a user-friendly environment to process small claims.
If your claim limit is more than the small claims limit, you need to file the dispute in a higher civil court. To file in the civil court, you may need to hire a lawyer.
After filing the lawsuit, pay the required fee to the court clerk. A legal expert can prepare your petition perfectly.
Step 4: Serve the Company with a Legal Notice
After filing the petition of the case in the court, the next step is “service of process." A service of process is a legal notice of the case that must be served on the company. By serving this notice, it ensures that the company is legally notified about that case. This legal notice is a copy of the petition that is delivered to the company’s address.
Step 5: Engage in Pre-Trial Discovery
After serving the legal notice and knowing about the case by the company or the defendant, there comes the discovery phase. Discovery is basically the exchange of documents, written interrogatories, testimonies, etc.
Step 6: Explore Settlement Options
In many cases, both parties navigate towards a settlement. Settlements are an efficient way to get compensation without facing a trial in court. Both parties have agreed to acceptable terms to resolve the case without a court.
Step 7: Proceed to trial if necessary.
If parties do not agree to settlements, the case will proceed to trial. At the trial date, both parties will present their case to the judge. The judge will review the case and make a decision.
What Happens If You Win?
If you get a favorable court decision, it will result in a judgment against the business. In other cases, you may enforce the judgment through wage garnishment or liens, or collection procedures because payment has not been received voluntarily. A successful judgment gives you the right to follow payment, although actual payment might not happen right away.
Common Mistakes to Avoid
Suing a company requires caution against typical mistakes that could harm your legal position. One common mistake in Legal Procedures occurs when suing the wrong entities, as filing against brand names instead of registered corporations. Missing your case deadline based on the statute of limitations will cause the court to dismiss it. Your case becomes considerably weaker whenever documentation proves insufficient or written evidence does not exist. Judges view witnesses who express excessive emotions in court instead of delivering concrete factual statements as less credible. Overall, the failure to follow court procedures or make filing mistakes can either extend the cases unnecessarily or lead to the complete dismissal of your case.
Tips to Strengthen Your Case
A lawsuit against a company needs written documentation because the court often finds oral agreements challenging to confirm. Time is serious because state laws limit when you can File a Claim after an issue happens, and delayed actions lead to losing your case. Professionalism combined with calmness and respect, and preparation serve as strong indicators for judges to grant favorable outcomes to plaintiffs. You should refrain from discussing your case through social media channels because the opposing party may exploit your posts against you. You need to observe all court deadlines and procedures exactly as stated because failing to do so will result in your case being dismissed.
Conclusion
To file a lawsuit against the company, you must follow the right legal steps. You must understand the ways to get compensation for your loss. You can communicate with the company about your loss by contacting them or by sending them an official letter. You can file the lawsuit in court. If you realize you are not capable of doing it alone and want to proceed, you can take legal help. It will enhance your case, and you will get the justified compensation.
Filing a lawsuit against a company is somehow challenging, but it can be easy with the help of an expert legal team. Legal experts provide the right guidance to find the best solutions and to get justice. It will lead you towards achievement and minimize the loss.
At first, you need to analyze the case in detail and gather the evidence. Then complete the paperwork of the court and file the petition in the appropriate court. After filing the petition of lawsuit against the company, a legal notice is served on the company to make sure that the company knows about your case. After that, look for the settlement. If settlement does not work, attend the court trial on the given date.
