INCREASED SMALL CLAIMS FEES

Effective August 1, 2010, the small claims limit was raised from $2,000 to $7,000. However with that the courts have taken advantage of tough times and have raised all of the filing fees. The filing fee will depend on the amount of the claim:

• $500 or less.................$40
• $501 to $2,000...............$50
• $2,001 to $5,000.............$100
• $5,001 to 7,000..............$150

Personal injury cases may now be filed in small claims court as long as the damages awarded won’t be more than $7,000. This is a significant change in that insurance companies on behalf of the defendant will no longer have the opportunity to sit on small cases for the usual two years it takes to get a case to trial or if they wish to proceed to trial and receive an adverse judgment, they have a right of appeal. Remember that the defendant has a right to appeal, the plaintiff does not. However if the defendant appeals from an adverse judgment, the primary or original judgment may be entered as evidence in court in the second trial. In essence, the original judgment is enough proof in and of itself to allow the court or jury to find for the plaintiff once again, without the plaintiff having to present any evidence. One other feature is that if the defendant transfers the case to the regular civil docket and loses, the defendant or his insurer will have to pay the plaintiff attorney fees.

One further quick note is that M.G.L. c. 93A, our consumer protection act, wherein double or triple damages plus attorney’s fees may be awarded, should not be effected by the $7,000 maximum. In other words, if the damages are $7,000 and there has been a violation of c. 93A, theoretically the magistrate may triple that amount to $21,000. The magistrate may also award attorney’s fees as well uneffected by the $7,000 limit. Accordingly, since an insurance company may be sued for bad faith in the small claims court you will now probably see the pendulum swing more equitably in favor of the injured. Let's hope so anyway.