Can You Take a Corporation to Small Claims Court

Fix to acquire how to sue a company in a California pocket-sized claims court? Learning how to sue a company in a California small claims court might seem similar a complicated process simply in this article, we pause down how small claims works!

In this article learn about:

• How much you tin sue a company for in small claims.
• How much going to small claims costs.
• The steps to suing in a California small claims court.
• What to expect during a small claims hearing.
• What information you will need when preparing to file the small claims court lawsuit.
• How to notice the right legal proper name for a business yous are suing.

How much tin you sue a company for in pocket-size claims?

In California, you lot tin can sue a business for a maximum of $10,000 if you are an private. If you are a business concern suing a business, you can sue for a maximum of $5,000.

Annotation, if you are a sole proprietor, you count as an individual.

By suing in small claims you are agreeing to waive whatsoever amount over the maximum corporeality you tin can sue for, even if you are owed more than .

For example, if a business organization owes y'all $15,000, and you make up one's mind to sue in pocket-sized claims, y'all are waiving suing for an additional $5,000. Pregnant that you volition win a maximum of $10,000.

While you lot may exist missing out on the full corporeality you are owed, in that location are practical benefits to suing in pocket-sized claims instead of suing in "regular court."

Here are some of the benefits:

1. Courtroom filing fees are cheaper in small claims than in other courts.
2. The process is faster in pocket-size claims than in other courts every bit your hearing will usually be scheduled 30-70 days after yous file the lawsuit.
3. Lawyers are more often than not not allowed in small claims which helps keep the costs of suing low.

How much does suing a business organisation in a California small-scale claims court cost?

And then how much are yous going to spend by suing in pocket-sized claims courtroom?

Court Filing Fees

The amount yous volition pay to file a small claims lawsuit in California depends on how much you are suing for. You volition pay betwixt $xxx to $75 to file the lawsuit. If you cannot beget to pay court fees, you lot can ask the court to waive the fees.

Serving Costs

Once the lawsuit is filed, you have to notify the company you sued that it has been sued. This is called "serving."

Serving Costs can range from $0-$75 per company you sue.

If y'all win, yous can request that the visitor you lot sued pay for your court fees and serving costs.

Learn More : Total Guide on California Small Claims Court Filing Fees

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What are the steps to suing a company in a California small claims court?

Nosotros accept outlined each i of these steps in detail, click the links to acquire more.

1. Prepare and file the lawsuit. Learn more.
2. Notify ("serve") the company you accept sued. Learn more than.
3. Prepare for and attend the modest claims hearing. Acquire more than.

Once the lawsuit is filed, the small-scale claims hearing will be scheduled 30-70 days later.

What is a minor claims court hearing similar?

Small claims hearings in California small claims are informal and most hearings last around 15 minutes.

Who volition stand for the company at the hearing?

• The easiest style to answer this question is that a lawyer will not be representing the company since lawyers cannot stand for parties at the initial small claims hearing.
• If the company you are suing is a corporation or LLC, they will have a non-lawyer employee representing them at the hearing.
• If the business is a sole proprietorship, meaning the business is not incorporated equally a corporation or LLC, the possessor of the visitor will represent the business concern at the hearing. Information technology tin can be tricky to figure out when a business is a sole proprietorship, more on this in the section below on "fictitious business organization names."

If y'all and the visitor you sued, both show upwardly:

• Correct before the hearing, the approximate will ask yous and the visitor representative to bear witness each other the bear witness that you will later show the judge.
• The judge will ask you why you lot are suing.
• The judge volition inquire the visitor to tell them their side of the story.
• The hearing will concluding around 15 minutes.
• The judge will ask yous to show them the testify you brought. Sometimes the judge volition keep the evidence. Other times, you lot will get the evidence correct dorsum.
• Very rarely a judge volition tell yous whether you won or lost at the hearing. Instead, the judge will tell you that their decision will be mailed to you (usually takes a few weeks to two months or and then).

If y'all prove up but the visitor yous sued does not show upward:

• If the company y'all sued does not show up to the hearing simply you properly notified ("served") them, and then the hearing volition still have identify. You don't automatically win and will yet have to tell the judge why you should win.

Learn More: What is What is a Small Claims Court Hearing Similar?

Preparing to File Your Small-scale Claims Lawsuit Against a Company

In order to sue a business organisation in a California small claims court, you demand to know:

1. The correct legal entity name for the business.
2. Who the "registered agent for service of process" is.

When filing a lawsuit against a visitor in a California pocket-sized claims court, it is very important to write downwards the right business entity on the lawsuit.

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1. What does suing the "correct business entity" mean?

An example is the best way to explicate this. Let's say you hired "ABC Painting" to pigment your habitation. ABC Painting may be an individual (sole proprietor) doing business organization equally ABC Painting or ABC Painting may exist an LLC or Corporation. Companies sometimes use a name other than their real legal entity name when doing business. This is chosen a fictitious business name.
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What happens if I don't sue the correct business entity? ‍

2. Who is the "registered agent for service of process"?

• Any corporation or LLC that does business in California, has to select a person (or some other business) to receive legal documents (like a lawsuit) on their behalf.
• This person (or business) is called the "registered amanuensis for service of process" or just the "registered agent."
• After the lawsuit is filed, this is the person (or business) who will be notified (" served ") of the lawsuit on behalf of the visitor you lot are suing.
• Read more than below on how to find the registered amanuensis.

Read More: Complete Guide on how to file a Small Claims Courtroom Lawsuit in California

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How to detect the right legal entity name for a business organization you are suing

Stride 1: Brand a list of whatsoever names the business has used in your interactions with them.

• Check the concern'southward website. Sometimes you lot can find the information in their "privacy policy" or "terms of utilise" all the manner at the lesser of the website.
• Check contracts or receipts you have received from the business.
• Check any communications the business organisation has sent you.
• If the lawsuit involves a contractor or an machine repair shop, look upwardly their business license.
  

Step 2: Cheque the California Secretary of State'due south website

Using the list of names you accept created for the business, run a search on the California Secretary of State'south website.

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Here are some tips:

• If you don't know whether the business is a corporation (the name volition usually finish in "inc." or take the word "corporation" in it) or LLC (the proper noun will unremarkably end with "LLC"), search by both categories.
  

• If also many similar names come upward, y'all may want to click on the word "condition" and then the results are organized by businesses with "active" status.
  

• There are many businesses that take like names then make certain the name you find is as close to one of the names listed on their website.
• Make certain to also click on the proper name of the business nether "entity name" and review the addresses. If the addresses are similar to the ones on the website, then you have likely found the correct business name.

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• For example, if you were suing Sprint (the telephone visitor) you would accept to double-check that "Sprint Solutions, Inc." is the correct legal entity for Dart (the phone visitor). Run a quick google search for "Dart Solutions, Inc." and see if the information you find ties it to Sprint (the phone company) or whether it is a unlike company.

Make sure you lot write down:

1. The complete legal entity proper noun for the business.
2. Who the "registered agent for service of process" is. This is the person (or business) who will be served on behalf of the business yous are suing.

If no names come up, and then run a fictitious business organization name search in the county where the business concern is located (Go to stride 3).

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Step 3: Determine whether the business is using a Fictitious Business organisation Name

What is a Fictitious Business organisation Name?

Sometimes an individual or concern will operate using a name other than their legal proper name. This is known as a:

• "fictitious business organisation name"
• "FBN"
• "doing business as"
• "DBA"

California law requires sole proprietors, partnerships, LLCs, and corporations that desire to do business concern using a name other than their legal name to annals the name in the canton where their chief place of business is located.

The purpose of this is to ensure that when someone wants to sue a concern, they are able to find the correct person to sue.

Sole Proprietors

When a sole proprietorship or an individual uses any name that does not include the terminal proper noun of the individual, they should file a Fictitious Business organization Name Statement.

A sole proprietorship is a business endemic past 1 person (or a married couple). If a sole proprietorship does business concern using a proper noun other than the owner'due south name, they must file a Fictitious Business Proper name Statement in the canton where their main place of business is located.

Notation: If their principal place of business is located outside the country of California then they must file the fictitious business name argument in Sacramento Canton.

Partnerships

If a partnership wants to use a name that does not include the terminal proper noun of each partner, they may need to annals the proper noun they are using.

Corporations

If a corporation uses any name other than the legal name stated in the articles of incorporation filed with the California Secretarial assistant of State, then they may demand to register the name they are using.

For more information on Fictitious Business Names read the California Business and Professions Code Sections 17900-17930.

How to search for registered fictitious business organisation names?

• Each county has a database with the registered fictitious business names. If you determine that a corporation or LLC is using a fictitious business name, and so go to Step 2 to search the California Secretarial assistant of State's database using the official legal entity name.
• If you determine that an individual is using a fictitious business concern name, and so you would listing the private as the accused (person existence sued) on the lawsuit.

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Searching using the BBB (Better Business Bureau)

Withal tin can't notice the correct legal entity name? Some other option is to search on the BBB. If the visitor has had complaints in the by, so the Improve Business Agency might accept looked upward the legal entity proper noun.

How to find the correct business organisation name on the BBB

1. Click here to get to the Better Business Bureau website.
2. Type the business name. If y'all know the metropolis and state where the business is located, then enter the urban center and state in the accost box. Otherwise, get out it bare and printing search.
3. A list of business names volition come up. You may run across a different business concern name than the one you typed. Attempt clicking on "view BBB review."
4. Go to the section labeled "Business organisation Details." Determine whether it seems similar that is the correct business you worked with by verifying the address. The business may list who the owner is or their correct legal entity proper name.

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