Month: February 2012

Small claims limit increase in 2012 … with exceptions!

Finally, California has increased its small claims recovery. A natural person (an individual) can get up to $10,000 in a lawsuit. Businesses and other entities (like government entities) can only get up to 5,000. This limit on businesses does not apply to sole proprietors, who are treated as natural persons. You can file as many claims as you want for up to $2,500 each. But you can only file 2 claims in a calendar year that ask for more than $2,500.

There are some exceptions to the $10,000 limit for individuals:

If you are filing a claim for bodily injuries as a result of a car accident against a person who has car insurance that includes a “duty to defend,” you can only sue that person for $7,500.

So if you are involved in a automobile accident and the damages including exceed $7,500.00 call us for a free consult.