Small Claims Courts can be found in many countries across the globe including the United States, Canada, Australia, Ireland, New Zealand, and South Africa. These courts have a confined jurisdiction and are often referred to by different names in each jurisdiction. Some common names used to refer to such a court are ‘Magistrate’s Court’ or ‘County Court.’
The purpose of a Small Claims Court is to resolve monetary issues and disputes for amounts that are relatively small. For instance, the maximum amount for which such a court can be used is $5,000 in the majority of American states. Most cases that are dealt with at these courts are related to debt collection. Apart from these the court also handles disputes of any sort that may have arisen between tenants and landlords.
Plaintiffs hoping to claim an amount that doesn’t exceed the official court limit can file their disputes at these courts. However, if the damages exceed the limit then the case filed is considered to be beyond the given County Court’s jurisdiction. By choosing to file a dispute in a Small Claims Court, a plaintiff in effect agrees to accept any amount that the court thinks fit based on the circumstances. He/She loses the right to contest the amount.