New law raises limit in small claims court

The Oklahoma Legislature expanded access to the small claims court by raising limits on the amount sought by plaintiffs.

The new law signed by Gov. Mary Fallin this week raises the limit from $7,500 to $10,000. Civil cases where the plaintiff is seeking a higher value will be filed in district court.

Cases making their way through small claims court are generally cheaper and move more quickly, said Legal Aid Services of Oklahoma attorney Brian Bishop. He said he views the new limit as a reasonable change. He said it’s a

a place for people to settle disagreements more easily and without having to hire lawyers.

“The parties appear in court, you make your argument and you win or lose,” Bishop said.

Small claims court rules are more streamlined to avoid evidence-gathering periods that are granted for costlier lawsuits, and the filing fees are cheaper.

Bishop said there is a trend among states of raising the cap on small claim lawsuit values.

“Obviously as the years go by, the limits probably need to expand, just given how things are more expensive,” he said. “Generally, there’ll be the argument that more people will have access to the courts.”

If someone considering a lawsuit feels that the trial process would be too long or costly, they might decide against filing.

The small claims limit was last raised in 2012, when lawmakers increased it by $1,500. The limit has more than doubled over the past 15 years.

Through his work with Legal Aid Services of Oklahoma, the most common of these cases Bishop sees are evictions, known as forcible entry and detainer lawsuits.

He said that there’s an upside to the new law for businesses.

“You might see an argument made that it’s not going to benefit consumers because you’ll have businesses going after smaller debts,” he said. “(Defendants) may not get the type of protection they would in a regular court case.”

Senate Bill 661 takes effect Nov. 1.

An analysis by legislative staff suggested that district courts could lose nearly $1.5 million in revenue from reduced small claims fees, but the executive overseeing Oklahoma’s system said the estimate is inaccurate.

Jari Askins, administrative director of the courts, said there’s no way to calculate the number of lawsuits filed seeking between $7,500 and $10,000.

If anything, Askins said, courts could see slightly higher revenue because the bill also expands a $10 fee to some smaller cases.

She also said businesses might benefit from the new law because sometimes a judgment sometimes is needed to write off a loss.

The law will allow parties to move any of the new small claims cases to district court.