Legal Question in Civil Litigation in California

Re: $10,000 Debt-Proceed to Muni-or Small Claims to Save Costs?

The attorney fees in Municipal Court (Superior Court limited jurisdiction) will cost you around $1,500.00 to $2,000.00. I'm not sure if multiple loans to the sameparty is splitting a cause of action. You might be able to file several law suits against the same person in Small Claims Court for several distinct loans to the same person. I'd have to give that some thought and a little time to research it. My initial reaction is it is probably splitting a cause of action. Even so I might consider Small Claims and filing more than one lawsuit. See what some of the other attorneys have to say when they respond.

Re: $10,000 Debt-Proceed to Muni-or Small Claims to Save Costs?

Thanks for your posting. I believe that Mr. Hobbs advice, to split up the loans and sue twice for $5,000 each, might be a good idea, EXCEPT if you cannot truly call these two separate transactions.

I know at my firm, we have many people in your situation. The normal deposit to hire an attorney is $1,950 (representing 10 hours at $195 per hour), and if the case settles or you win by default (which is common in these types of cases) you may not even end up using the entire 10 hours, in which case the unused portion may be refunded to you.

There are some pitfalls -- and if this person claims bankruptcy, or suddenly has an attorney willing to fight all the way to trial, you might find yourself losing out on the entire balance plus attorney's fees, or spending much more money than you anticipated on this "simple" case.

Most attorneys don't take contract cases on contingency, for reasons that are too numerous to list here. Some collection agencies will, either before or after you get a judgment.

The true financial test is to measure what your cost to have an attorney will be, and measure that vs. the most you can sue for in small claims court. I think you will find it worthwhile to get an attorney, as I doubt it will cost you more than $5,000.00.

Best of luck, and if you have any other questions, or want more detailed advice on anything, please feel free to email me directly. I'm happy to help in any way that I can.