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Small claims actions range doubles to $10,000

By: Jack Zemlicka, [email protected]//July 1, 2011//

Small claims actions range doubles to $10,000

By: Jack Zemlicka, [email protected]//July 1, 2011//

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An increase in the jurisdictional amount for small claims actions in Wisconsin effective today is expected to increase the burden on court commissioners and judges in the state.

The adopted 2011-13 state budget broadened the range for cases that can be filed in small claims court from those worth $5,000 or less to now $10,000 or less.

“We do anticipate an increase in small claims cases because of the doubling of the amount,” said Jim Smith, Milwaukee County chief deputy clerk of court. “But it’s kind of an unknown right now.”

The Joint Finance Committee inserted the provision into the budget, which was signed by Gov. Scott Walker on June 26.

Last year, Milwaukee County disposed of more than 43,000 small claims cases and more than 30,000 of those were contract disputes and collections.

While Smith said those numbers will grow in 2011, the change does not apply to third-party complaints, personal injury claims or tort claims, which remain at $5,000 or less to qualify as a small claims action.

One of the dangers of the change is the chance that pro se litigants could still try and file personal injury or tort claims of more than $5,000 in small claims court.

“It’s likely their claim is going to be dismissed and they will have to start over in large claims,” Smith said.

The court is working to draft pamphlets to explain the changes to pro se litigants, he said.

The majority of the increase could to come from collections actions, Smith said, especially from businesses.

“I think a lot of small businesses wanted this because when trying to collect $7,000 they didn’t want to hire a lawyer, so they would settle for $5,000 of what was owed,” Smith said.

Now they have a chance to recover the entire amount up to $10,000, without having to go file it as a large claim.

Smith said some claims will still result in default judgments, but with more money at stake, there is a higher likelihood that people will contest claims.

“That’s where we can possibly see lengthier adjournments and doing more contested hearings in front of commissioners,” he said. “There are only so many slots in a day.”

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