Defending Yourself in Small Claims Court

MORE on Option #3 Negotiate – Mediate – Try to Reach a settlement

Think about this case the way an outsider would.

Do you owe money?  Does the other side have a good case? They are clearly serious about going to trial. This is another opportunity to try to reach a settlement without going to court.

Then ask yourself – “Is there room to compromise?” There usually is some acceptable middle point, especially in money disputes. Remember that it will cost you time off from work, possibly other costs and maybe attorney’s fees if you defend your case in court. The same is true for the other side.

Even if you and the other side tried negotiating in the past, you should still consider talking to your opponent to see what might be worked out at this point.

Don’t be fooled into thinking that you will be able to “split the difference”, that is, agreeing to reduce the money claim by half. The fact that it has gone this far means that the other side thinks they have a good case. If you are able to reach an agreement to reduce the claim by 20 – 30%, many people would consider this a victory. Of course, if you believe that the other side is completely wrong and you owe nothing, this option is not for you.

What are my choices?

• You can talk directly to the other side - Tips on Negotiation
• You may also wish to involve a neutral third person in a mediation or arbitration. There are low cost options Read more about how it works and where to find reputable help.

Two practical reasons to consider mediation

Here are good reasons to consider this option even if you are not a "mediation person". Even if your feeling can be summed up as "Let's just sue them. Why talk?"

• Mediation offers the chance to deal with the emotional issues raised by the dispute. Don’t let the word “emotional” throw you. Mediation can be particularly important if you will have an ongoing relationship with the other side – family, friend, or neighbor. You may not win more (if anything) by going to court to make up for future years of discomfort with the other side.
• Mediation often results in reducing the initial amount claimed by the other side. You cannot count on reducing the amount if you go to court, especially if your defense is not particularly strong. On the other hand, the plaintiff does not know (for sure) that your case is not wonderful. You may be successful in pointing out that a compromise can save both of you the time, trouble and expense of going to court.

TIP- If you are able to reach an agreement through your negotiation or mediation, it is a good idea to ask the judge to enter the agreement as part of the court order. Just in case, the other side does not live up to their side of the agreement, you will find it easier to enforce a judgment than to try to enforce a private agreement.