Consider: Your Ability to Collect
Perhaps the biggest misconception of suing someone in court is that receiving a judgment in your favor automatically means you receive what you’re owed.
Alabama’s small claims court website says plaintiffs should “find out if the person or business you plan to sue has any money or assets to pay your claims if you should win. Otherwise, you may have a difficult time collecting on a court judgment. Remember, it is up to you, not the court, to take further legal action against the person or business if they do not pay the judgment.”
As in Papageorge’s case, that “further legal action” would have cost additional money out of his pocket. Taking out a lien against a property could help in some (but not all) cases, and would still call for additional filing fees and management time.
As a board member for the Remodeling Contractors of Connecticut (his local National Association of the Remodeling Industry chapter), Papageorge says that he has heard plenty of stories about contractors not getting paid. In 13 years, he has only had four instances of not being able to settle a disagreement, and says that occasionally it’s better to indulge the homeowner.
“Sometimes it’s ridiculous, but if we have to do our work for less money than we’re owed, I’ll just take it and be happy,” Papageorge says. “If you’re not happy with the job we did, we try to make it right; we just won’t work with you again.”
What’s Your Maximum Judgment?
Every state has limits to the award you can receive in small claims court. If the amount you’re owed exceeds the limit, you can choose to forfeit the difference in small claims court or opt for litigation that could help you earn everything you’re due—or leave you with nothing, plus the expense of court costs and attorneys’ fees.
Here is a look at the limits for each state. Some counties, parishes, and other localities will differ. Be sure to check your state and local court guidelines for up-to-date information.
Lauren Hunter is the senior products editor at REMODELING.
