Is it Better to Settle than to go to Court?
If you win, can you collect?
Does your opponent have any money? Is your opponent likely to have any money in the future? You have to
think about the person you are dealing with. A retired person on Social Security probably isn’t going to be
better off in the future than he or she is now, so collecting a Judgment, now or in the future, can be difficult.
If you are unlikely to collect, or if you have to hire an attorney to help you collect a Judgment, it may not
make much sense to spend the time to go through a Small Claims trial. However, a Judgment might be
collectable in a few years, even if it can’t be collected now. Maybe your opponent just started a new job and
may be able to pay in the future. Remember, Judgments are valid for at least six years.
If you lose, can you pay?
This is a hard question for most people to answer unemotionally, because they believe they have a great
case and couldn’t possibly lose. But someone always loses. People often confuse what’s fair or moral with
what’s legal. Before going to court, you have to take a realistic look at what happened. Tell people about
your case and see how they react. If there is a possibility you might lose, you have to think about how you
will pay a Judgment.
Settlement is always an alternative. Many cases settle, even if there are attorneys involved. If you settle, you
can structure your own result, rather than having a Magistrate do it — you know what you can afford, and the
Magistrate doesn’t. If the court has mediators, they can assist you in trying to reach a settlement.
If you decide to go to court, the procedures for Small Claims are simple, but they have to be followed. This
Handbook will help, but there is also a great deal of information about Small Claims on the Internet. You can
access the Internet at a library if you do not have access at your home. To research the topic online, start
with www.courts.state.co.us
, click on the Forms tab, choose Small Claims and choose Local Small Claims
Practices on the right side of the page. This information will tell you information about the court you will be
in. If you click on the Forms tab and select Small Claims again, you will see several forms that can be
printed from the site or requested from any Small Claims clerk. Be sure to review JDF 248, Small Claims
Instructions. The Small Claims clerks are not allowed to give legal advice, but can be very helpful with
answers to questions about Court
jurisdiction, operations, and procedures, and with guidance in completing the necessary forms. The forms
include a lot of detailed information for both the Plaintiff (the person who started the case) and the Defendant
(the person responding to the Plaintiff).
Procedures
Complaint
If you are bringing a claim, you will need a form called a “Notice, Claim and Summons to Appear for Trial”
(called a Complaint), JDF 250. You can get this form from the courthouse, or visit the Judicial Branch
website at
www.courts.state.co.us (click on Forms then Small Claims to find and download the form).
The first section asks for information about the person bringing the Complaint, called the “Plaintiff.” Make
sure to complete all of the information that is asked for in the form, including your telephone numbers. The
second section asks for information about the person(s) or organization(s) you are suing, called the
“Defendant.” Make sure that you sue the right person or organization. Also, make sure all of the names are
spelled correctly. For example, if you want to sue a corporation, you write “Jones Corporation” in the
Defendant section. If you want to sue the corporation and one of its employees, you write “Jones Corporation
and John Jones, individually.” If you don’t correctly name the right party and you win, you may not be able to
collect your Judgment.
The third section requires you to name the “registered agent” if you are suing a corporation, Limited Liability
Company or various other types of business entities. If a corporation wants to do business in Colorado, it
must have a registered agent to receive legal papers, such as the Complaint. You can find out who this
person is by calling the Colorado Secretary of State or find the information online at www.sos.state.co.us.
There is no charge for the call or the information. You have to serve the registered agent, an officer or certain
types of managerial employee of the corporation, or your case could be dismissed.
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