Should you actually sue?

The four questions that actually matter

Most people assessing a small claims case ask themselves only one question: am I in the right? It is the least useful of the four.

1. Can you prove it?

   Small claims hearings are short and decided on documents. A clear contract, a message thread, dated photographs and receipts will beat a more sympathetic story with nothing behind it. If your case rests entirely on what was said in a room, it is weak regardless of the truth.

2. Can you collect?

   This is the question nobody asks until after they have won. The court does not collect for you. A judgment against an employed person or a going business is worth real money; against someone with no job, no bank account and no property, it is an IOU you may never cash. The judgment does last 10 years, is renewable, and earns 10% a year — so waiting is a strategy, just not a fast one.

3. Are you in time?

   Four years on a written contract, two on an oral one, three on property damage, two on personal injury. Missing it bars the claim however strong it is. Check your date.

4. Does the amount fit?

   Under $12,500 for an individual, under $6,250 for an entity. You can waive the excess to stay in small claims, but the judgment then resolves the whole claim — you cannot come back for the remainder.

Cases where you should use something else

• Unpaid wages → the California Labor Commissioner. Free, no dollar ceiling, and they investigate for you.
• Serious injury → an injury attorney, usually on contingency. The $12,500 cap is final.
• A card purchase that went wrong → a chargeback. Faster, free, and the issuer does the work.
• An out-of-state defendant → often impractical to pursue in California even when you are plainly right.